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Stock (geology)
About: Stock (geology) is a research topic. Over the lifetime, 31009 publications have been published within this topic receiving 783542 citations.
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TL;DR: In this paper, the authors identify four categories of formal stock market in Africa: South Africa, medium-sized markets, small new markets which have experienced rapid growth, and small new market which have yet to take off.
Abstract: This paper identifies four categories of formal stock market in Africa: South Africa, medium-sized markets, small new markets which have experienced rapid growth, and small new markets which have yet to take off. The hypothesis that a stock market price index follows a random walk is tested for South Africa, five medium-sized markets (Egypt, Kenya, Morocco, Nigeria and Zimbabwe) and two small new markets (Botswana and Mauritius) using the multiple variance ratio test of Chow and Denning (Journal of Econometrics, 58, 385–401, 1993). The hypothesis is rejected in seven of the markets because of autocorrelation of returns. For the South African market, the stock price index follows a random walk. The paper also suggests factors which may contribute to whether or not an equity market follows a random walk.
205 citations
TL;DR: The authors examined the effect of mergers on bidding firms' stock prices and found evidence of merger momentum: bidder stock prices are more likely to increase when a merger is announced if recent mergers by other firms have been received well (a “hot” merger market) or if the overall stock market is doing better.
Abstract: This paper examines the effects of mergers on bidding firms’ stock prices. We find evidence of merger momentum: bidder stock prices are more likely to increase when a merger is announced if recent mergers by other firms have been received well (a “hot” merger market) or if the overall stock market is doing better. However, there is long run reversal. Long-run bidder stock returns are lower for mergers announced when the either merger or stock markets were hot at the time of the merger than for those announced at other times.
205 citations
TL;DR: In this paper, the authors present evidence of this type of social influence: recent stock returns that local peers experience influence an individual's stock market entry decision, particularly in areas with better opportunities for social learning.
Abstract: Peer performance can influence the adoption of financial innovations and investment styles. We present evidence of this type of social influence: recent stock returns that local peers experience influence an individual’s stock market entry decision, particularly in areas with better opportunities for social learning. The likelihood of entry does not decrease as returns fall below zero, consistent with people not talking about decisions that have produced inferior outcomes. Market returns, media coverage, local stocks, omitted local variables, short sales constraints, and stock purchases within households do not seem to explain these results.
205 citations
TL;DR: In this paper, the authors provide evidence on the evolution of contemporaneous and lead/lag relationships among eight national stock markets and suggest that regional interdependencies have grown over time.
Abstract: The growing globalization of financial markets has been accompanied by a growing body of empirical research attempting to describe and quantify the ways in which financial markets within and across countries interact. Better understanding of the nature of cross market linkages and interactions could be of help to investors and policy makers alike. With respect to policy, aspects of market interaction that promote efficiency could, in principle, be facilitated whereas, those with undesirable side effects could be controlled. Likewise, investment and hedging strategies could be more effective if the nature of market interactions were better understood. The extant literature provides convincing evidence that financial markets do influence each other. For example, Koch and Koch (1991) provide evidence on the evolution of contemporaneous and lead/lag relationships among eight national stock markets. They suggest that regional interdependencies have grown over time. Becker, Finnerty, and Gupta (1990) show that information generated in the US stock market could be used to trade profitably in Japan, contrary to the market efficiency hypothesis. However, when transaction costs and transfer taxes are included into the analysis, excess profits vanish. Eun and Shim (1989) document that markets around the globe respond to innovations in a way that is consistent with the notion of informationally efficient international stock markets. King and Wadhwani (1990) use a rational expectations model with asymmetric information to test for 'contagion effects' i.e., the notion that valuation mistakes in one market can be transmitted to other markets.' More recent papers extend the scope of market interaction to include second moment linkages. This extension allows testing ofthe hypothesis that information generated in a given market at time / is useful in terms of predicting the conditional mean and variance in another market at time t+l. Hamao, Masulis and Ng (1990) examine first and second moment interdependencies in the three major stock markets (New York, Tokyo, and London) using univariate GARCH models. For the period after the October 1987 worldwide stock market crash, they find that innovations coming from
204 citations
TL;DR: In this article, the authors make use of heteroscedasticity-robust linear Granger causality and nonlinear Granger causal tests to examine the links between the Islamic and global conventional stock markets, and between Islamic stock market and several global economic and financial shocks.
204 citations