Stock exchange

About: Stock exchange is a research topic. Over the lifetime, 39566 publications have been published within this topic receiving 612044 citations.

The incumbent discount: Stock market categories and response to radical technological change

Abstract: I combine research from institutional theory and technological change to explore stock market reactions as firms respond to radical technological change and, further, how these reactions affect firms' subsequent responses. An incumbent firm's stock price will decrease to the extent that it is forced it to depart from its stock market identity. Negative reactions from the stock market, in turn, affect subsequent response efforts. Incumbent inertia or an inability to respond to technological change may arise from institutional pressures from financial markets during the uncertain period of technological change.

The Value-Relevance of Adopting IFRS: Evidence from 145 NGAAP Restatements

Abstract: Firms listed on stock exchanges within the European Economic Area are required to report consolidated financial statements according to IFRS from 2005 The firms that adopted IFRS in 2005 were also required to restate their 2004 financial statements from national GAAP to provide comparable accounting figures These two sets of financial statements for 2004 are thus based on identical underlying economic activities and are fully specified according to two different reporting regimes Our sample consists of 145 restatements from NGAAP to IFRS for firms listed on the Oslo Stock Exchange in Norway We test whether the IFRS accounting figures correlate more strongly with stock market values than the corresponding NGAAP figures We find little evidence of increased value-relevance after adopting IFRS when comparing and evaluating the two regimes unconditionally On the other hand, when evaluating the change in the accounting figures from NGAAP to IFRS, we find evidence that the reconcilement adjustments to IFRS are marginally value-relevant due to increased relevance of the balance sheet and the normalized net operating income By weighting our sample by firm size, intangible asset intensity and profitability, we learn that the increased value-relevance of the net operating income stems from different reporting of intangible assets Since more intangible assets are capitalized according to IFRS than NGAAP, our finding is consistent with the view that capitalizing intangible assets is more value-relevant than expensing them as incurred or through goodwill amortization

Transmission of the Financial and Sovereign Debt Crises to the EMU: Stock Prices, CDS Spreads and Exchange Rates

Abstract: This paper tests for the transmission of the 2007-2010 financial and sovereign debt crises to fifteen EMU countries. We use daily data from 2003 to 2010 on country financial and non-financial stock market indexes. First, we find strong evidence of crisis transmission to European non-financials from US non-financials, whereas the increase in dependence of European financials on US financials is rather limited. Second, in order to test how the sovereign debt crisis affected stock market developments we split the crisis in pre- and post-Lehman sub periods. Results show that financials become significantly more dependent on changes in Greek CDS spreads after Lehman’s collapse, compared to the pre-Lehman sub period. However, this increase is not present for non-financials. Third, before the crisis euro appreciations are associated with European stock market decreases, whereas during the crisis this is reversed. Finally, the reversal in the relationship between the Eurodollar exchange rate and stock prices seems to have been triggered by Lehman’s collapse.

Stock market trend prediction using ARIMA-based neural networks

Abstract: We develop a prediction system useful in forecasting mid-term price trend in Taiwan stock market (Taiwan stock exchange weighted stock index, abbreviated as TSEWSI). The system is based on a recurrent neural network trained by using features extracted from ARIMA analyses. By differencing the raw data of the TSEWSI series and then examining the autocorrelation and partial autocorrelation function plots, the series can be identified as a nonlinear version of ARIMA(1,2,1). Neural networks trained by using second difference data are shown to give better predictions than otherwise trained by using raw data. During backpropagation training, in addition to the traditional error modification term, we also feedback the difference of two successive predictions in order to adjust the connection weights. Empirical results shows that the networks trained using 4-year weekly data is capable of predicting up to 6 weeks market trend with acceptable accuracy.

Foreign Listing Location: A Study of MNCS and Stock Exchanges in Eight Countries

Abstract: This study aims to enhance our understanding of multiple listings by addressing the where question related to foreign listings. It examines factors that influence firms' choices of foreign stock excanges. Based on a sample of 459 internationally traded MNCs, with at least one foreign listing on one of nine major stock exchanges (in eight countries) at year-end 1992, we find strong evidence that foreign listing locations are significantly influenced by 1) financial disclosure levels, and 2) the level of exports to a given foreign country.