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Stock exchange
About: Stock exchange is a research topic. Over the lifetime, 39566 publications have been published within this topic receiving 612044 citations.
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TL;DR: In this article, the authors discuss the rise of Japanese stock and land prices in the past four decades and their dramatic decline in the early 1990s, and discuss the role of land values in the Japanese stock market.
Abstract: In late 1991, the total land value in Japan was estimated at nearly $20 trillion. This was more than 20 percent of the world's wealth, or to put it in some other contexts, about double the world's equity markets or half again as large as the world's bond markets. Japanese land was then valued at about five times that of the United States; the land under the Emperor's Palace, which is about three-quarters of a square mile, was estimated to be worth about the same as all the land in California or in Canada. Real estate assets of Japanese corporations grew by $2.8 trillion from 1986 to 1988, an increase in valuation roughly equal to the size of the Japanese gross national product. An equally dramatic rise in stock prices accompanied the rise in land prices. At its peak in December 1989, the Japanese stock market had a value of about $4 trillion, which was about 44 percent of the world's equity market capitalization. To put that figure in perspective, the value of the equity on all the stock exchanges in the United States in August 1992 was less than $5 trillion. But then, from its peak in December 1989 to August 1992, the Japanese stock market fell by over 60 percent. Various indices of speculative land values fell a similar amount. Meanwhile, other land prices—industrial, commercial, residential, as measured by various indices—fell 15–20 percent. This paper discusses the rise of Japanese stock and land prices in the past four decades and their dramatic decline in the early 1990s. To what extent can
131 citations
01 Jan 2008
TL;DR: In this article, the authors provide early evidence of a link between the iTraxx credit default swap (CDS) index market and the stock market, and find significant positive autocorrelation in the CDS market.
Abstract: In this paper we provide some early evidence of a link between the iTraxx credit default swap (CDS) index market and the stock market. To our knowledge this is the first paper studying this relationship. Knowledge about the link between stock prices, stock return volatilities and CDS spreads is important not only for risk managers using credit default swaps for hedging purposes, but also to anyone trying to profit from arbitrage possibilities in the CDS market. For a sample of European sectoral iTraxx CDS indexes, a correlation study reveals a tendency for iTraxx CDS spreads to narrow when stock prices rise and vice versa. Furthermore, there is some evidence of firm-specific information being embedded into stock prices before it is embedded into CDS spreads. Stock price volatility is also found to be significantly correlated with CDS spreads and the spreads are found to increase (decrease) with increasing (decreasing) stock price volatilities. Finally, we find significant positive autocorrelation in the iTraxx market.
131 citations
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TL;DR: In this paper, the potential determinates of the capital structure of non-financial firms listed on the Karachi Stock Exchange were studied. But, they did not find tangibility as significantly correlated with leverage.
Abstract: In this paper, we study the potential determinates of the capital structure of non-financial firms listed on Karachi Stock Exchange. We analyse a sample of 445 firms listed on the KSE for the period 1997-2001. We have chosen tangibility of assets, size, firm growth rate, and profitability as independent variables, and measure their effect on debt/total asset ratio (proxy for leverage). Using the technique of panel data analysis, we observe that of the four independent variables, growth, size, and profitability have significant effect on leverage. However, we do not find tangibility as significantly correlated with leverage.
131 citations
TL;DR: In this paper, the authors examined the stock price movements of firms that announced repurchases in the two-week period immediately after the 1987 stock market crash and found that the stock prices of these firms had declined abnormally during the crash period prior to their repurchase announcements.
Abstract: 0 The stock market crash on Monday, October 19, 1987 ignited an unprecedented rush by firms to announce open-market stock-repurchase programs. During the two weeks following the crash, almost 600 publicly traded firms announced these programs. In contrast, only 350 firms had announced open-market repurchase programs from January 1, 1987 to the crash date, while 250 firms announced stock-repurchase programs in November 1987 [6]. This study examines the stock-price movements of firms that announced repurchases in the two-week period immediately after the crash. The empirical results show that the stock prices of these firms had declined abnormally during the crash period prior to their repurchase announcements. The repurchase announcements generated stock-price rebounds in the period following the announcement. Overall, the results support the argument that the repurchase announcements had a positive impact on the stock market, consistent with the findings on the effects of stock-repurchase announcements in the Division of Market Regulation SEC Report [6].1 Much of the research on this paper was completed while Jeffry Netter was Senior Research Scholar at the SEC. The authors thank Janis
131 citations
TL;DR: This article examined differences in stock price reactions following voluntary capital injections by commercial banks and involuntary capital injections required to meet regulatory capital requirements, and found that stock price declines associated with voluntary common stock issues are significantly greater than those associated with involuntary common stock injections, consistent with Ross (1977).
130 citations