Use of information sources, annual reports and other corporate announcements: the case of large and small investors of India
Meena Bhatia
Afro-Asian J. of Finance and Accounting, Vol. 13, No. 6 (2023) pp. 714 - 734
This study investigates the perceptions towards corporate annual reports, its sections, information sources, and other announcements used for equity investing by large and small individual investors; and studies differences in perceptions between the two groups. The data gathered from 276 completed surveys is analysed using descriptive statistics and Mann Whitney tests. The findings show that, in comparison to developed markets and other developing markets, Indian investors (both large and small) rely more on personal knowledge of the firm and analysis of the company in relation to annual reports. Investors find annual reports too long, and large investors reported that there is delay in publishing it. The financial statements are the most important and understandable section. Announcements on stock exchanges are deemed the most crucial since they are related to their choices. There is no prior research on this feature of Indian investors in the literature.
Tag: emerging markets
A longitudinal investigation of IFRS-8 implementation: evidence from Qatar
A longitudinal investigation of IFRS-8 implementation: evidence from Qatar
Ghassan H. Mardini; Amneh Alkurdi; Ahmed Hassan Ahmed
Afro-Asian J. of Finance and Accounting, Vol. 13, No. 1 (2023) pp. 125 - 145
The main objective of the current study is to investigate the segmental information reporting (SIR) of Qatari listed firms covering the period from 2009 to 2018. The sample comprises all companies listed on the Qatar Stock Exchange (QSE) at the end of 2009. A disclosure index was developed to determine the extent of SIR amongst the sample companies. The study used a longitudinal empirical analysis approach; a year-by-year analysis. The findings revealed a gradual upsurge and awareness of the requirements of IFRS-8 from year to year. Moreover, the reported results suggest that the post-implementation review of IFRS-8 has had a large and positive impact on SIR disclosures since 2014. This research should provide substantive insights for regulators and standard-setters in identifying best practices and spreading awareness of SIR, which in turn should allow SIR practices to become more standardised, making them easier to monitor and govern. Our study provides a longitudinal examination of segmental reporting practices in a developing country, such as Qatar, which permits direct examination of the progress made regarding the implementation and extent of SIR.
Trade credit in an emerging market: evidence from Kuwaiti firms
Trade credit in an emerging market: evidence from Kuwaiti firms
Yomna Abdulla
Afro-Asian J. of Finance and Accounting, Vol. 12, No. 2 (2022) pp. 216 - 231
We investigate the trade credit policy in Kuwaiti firms during the period 2011-2016. Specifically, we examine the impact of the decline in oil prices on the level of trade credit and on the relationship between trade credit and firms' profitability. The findings show that the decline in oil prices had no significant impact on the level of trade credit or the relationship between trade credit and profitability. We find that cashflow, cash holdings, current assets, short-term debt and size are the main determinants of trade credit. The results also show that the level of trade credit has a negative impact on a firm's profitability and is more pronounced in financially unconstrained firms.
The mitigation of agency problem by using corporate governance in emerging markets: evidence from Vietnam
The mitigation of agency problem by using corporate governance in emerging markets: evidence from Vietnam
Duy Thanh Nguyen; Thanh Hai Huyen Truong
Afro-Asian J. of Finance and Accounting, Vol. 12, No. 2 (2022) pp. 143 - 164
The paper examines the impact of ownership structure and board characteristics on firm performance in Vietnam. Obtaining a sample of 300 non-financial companies listed on Ho Chi Minh Stock Exchange (HOSE) and Ha Noi Stock Exchange (HNX) from 2014-2018, the paper reveals the positive impact of foreign and CEO ownership on firm performance, while state ownership, board independence, board gender diversity, and CEO duality yield negative impact due to various institutional factors. This paper also addresses some limitations in term of statistical models in the previous papers, providing more valid and reliable findings. Consequently, several implications have been proposed for company management and regulatory authorities.
Does fund managers’ timing ability depend on market conditions? Evidence from Turkish variable funds
Does fund managers' timing ability depend on market conditions? Evidence from Turkish variable funds
Hale Yalcin; Sema Dube
Afro-Asian J. of Finance and Accounting, Vol. 11, No. 4 (2021) pp. 634 - 646
We examine market timing by Turkish variable-fund managers during 2011-2016 within a panel data framework, using interaction variables to control for market conditions. We find strong evidence for market-timing ability, which increases with country openness, global emerging-market portfolio returns, economic growth and, to a smaller extent, derivative market size; and decreases with technological advancement. We also find no evidence for security selection ability. Our results suggest that market timing ability depends on market conditions and it may be important to control for such conditions in studies that seek to determine managerial performance.
An empirical examination of correlation dynamics between commodity and equity derivative indices: evidence from India using DCC-GARCH models
An empirical examination of correlation dynamics between commodity and equity derivative indices: evidence from India using DCC-GARCH models
Perumandla Swamy; Kurisetti Padma
Afro-Asian J. of Finance and Accounting, Vol. 10, No. 2 (2020) pp. 207 - 234
This empirical study investigates the time-varying co-movements and volatility linkages between equity-commodity indices and inter-commodity indices. This paper deploys DCC-GARCH framework. Three versions of GARCH namely standard, threshold and exponential with both symmetric and asymmetric versions of dynamic conditional correlations (DCC) have been used. This study considers equity index Nifty 50, non-agricultural commodity indices MCX Energy and MCX Metal along with agricultural commodity indices Dhaanya and MCX Agri. Our results revealed that the combined portfolio of commodities-equity has low or negative correlations, which provide better diversification property rather than a portfolio without commodities. However, we notice a steep decline in time-varying correlations of equity with non-agricultural commodity portfolio since 2013. The mixed portfolio of the agricultural commodity with non-agricultural commodity can also offer diversifying benefits. We found high volatility shifts in time-varying co-movements of Nifty 50-MCX Agri pair. On the other hand, we observed an increasing trend in the co-movements of Nifty 50-Dhaanya, it indicates the interdependency of these two markets. Non-agricultural commodity pair (MCX Energy-MCX Metal) and agricultural commodity pair (MCX Agri-Dhaanya) fail to offer better-diversifying properties. This study provides an essential insight to policymakers, portfolio managers, domestic and international investors, risk analysts and financial researchers in an emerging market.
Debt maturity and the development of financial markets in Vietnamese listed firms
Debt maturity and the development of financial markets in Vietnamese listed firms
Thuy An Chung; Quynh Trang Phan
Afro-Asian J. of Finance and Accounting, Vol. 10, No. 2 (2020) pp. 184 - 206
This study examines the determinants of the corporate debt maturity structure for the period from 2007 to 2016, utilising a sample of non-financial listed firms chosen from two stock exchanges: the Ho Chi Minh Stock Exchange (HOSE) and the Ha Noi Stock Exchange (HNX). The regression results partially support the theories of agency cost, signalling and liquidity risk and provide little evidence supporting the theory of tax minimisation. We find that leverage, firm size and lagged debt maturities are the important factors in the choice of corporate debt maturity. Other evidence documents that the development of the equity market plays an important role in the financial structure.