Citation
Aras, G. (2024), "Editorial", Journal of Capital Markets Studies, Vol. 8 No. 1, pp. 3-5. https://doi.org/10.1108/JCMS-07-2024-054
Publisher
:Emerald Publishing Limited
Copyright © 2024, Guler Aras
License
Published in Journal of Capital Markets Studies. Published by Emerald Publishing Limited. This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at http://creativecommons.org/licences/by/4.0/legalcode
Dear Readers,
It is my pleasure to introduce the first issue of the eighth volume of the Journal of Capital Markets Studies (JCMS) with a diverse range of three papers. These papers focus on the new trends and uncertainty in emerging stock market returns, a systematic literature review of passive investors and short-sale constraints and stock returns, new techniques to develop an integrated candlestick technical analysis model and a literature review of nomination and remuneration committee.
The issue begins with the paper of Thabo J. Gopane, Noel T. Moyo and Lesego F. Setaka titled “Emerging market analysis of passive and active investing under bear and bull market conditions.” This paper aims to investigate active versus passive investment strategies under bull and bear market conditions in emerging markets, focusing on South Africa as a case study. The measures of Jensen's alpha and the Treynor index are applied to the monthly returns of 20 funds from January 2010 to June 2022. The empirical results reveal that actively managed funds outperform the market benchmark and passive investing styles under bear and normal market conditions. Passive investment strategy outperforms both market benchmarks and actively investing style under bull market conditions.
This issue continues with the paper “Geopolitical risk, economic policy uncertainty, financial stress and stock returns nexus: evidence from African stock markets,” written by David Korsah and Lord Mensah. This study investigates the impact of macroeconomic shock indexes on stock returns in Africa, with evidence spanning from May 2007 to April 2023, covering notable global crisis episodes such as the Global Financial Crisis (GFC), the COVID-19 pandemic and the Russia–Ukraine war. Utilizing the novel quantile vector autoregression (QVAR) model, the study captures the potential nonlinear and asymmetric relationship between stock returns and the factors of interest across different quantiles, i.e. bearish, normal and bullish market conditions. Findings posit that among the macroeconomic shock indicators, the Fragile States Index (FSI) exerted the highest influence on stock returns in Africa in both bullish and normal market conditions. Across the various market regimes, the Egyptian Exchange (EGX) and the Nairobi Stock Exchange (NSE) were net receivers of shocks.
The third paper gives a comprehensive, systematic review of short-sale constraints and stock returns and is written by Mostafa Saidur Rahim Khan. The author aims to conduct a comprehensive review of the literature to elucidate the reasons behind these disparities. A systematic review of existing theoretical and empirical studies was conducted following the PRISMA method. The analysis centered on discerning the factors contributing to the divergence in projected stock prices due to these constraints. Key areas explored included assumptions related to expectations, homogeneity, revisions, information uncertainty, trading motivations and fluctuations in the supply and demand of risky assets. Empirical evidence disparities stemmed from the use of proxies for short-sale constraints, varied sample periods, market structure nuances, regulatory changes and the presence of option trading.
Fourth paper is titled “Novel comparative methodology of hybrid support vector machine with meta-heuristic algorithms to develop an integrated candlestick technical analysis model,” written by Armin Mahmoodi, Leila Hashemi, Amin Mahmoodi, Benyamin Mahmoodi and Milad Jasemi. The authors aim to predict stock market signals by designing an accurate model between the years 2013 and 2021. The stock market is analyzed by the technical analysis of Japanese Candlestick, which is combined by the following meta-heuristic algorithms: support vector machine (SVM), meta-heuristic algorithms, particle swarm optimization (PSO), imperialist competition algorithm (ICA) and genetic algorithm (GA). Empirical results have been indicated that, the prediction accuracy of all new models are high for only six days; however, with respect to the confusion matrixes results, it is understood that the SVM-GA and SVM-ICA models have correctly predicted more sell signals, and the SCM-PSO model has correctly predicted more buy signals.
This issue continues with the paper titled “The rise of passive investing: a systematic literature review applying PRISMA framework,” written by Priya Malhotra. This study investigates 943 articles on passive investing published between 1998 and 2022 in SCOPUS and Web of Science, conducting a systematic review using the PRISMA framework. The study provides a bibliometric overview of works on passive investment research that are indexed in Scopus and the Web of Science. Bibliometrix, VoS Viewer and Cite Space are the tools used to conduct content and network analysis to ascertain the present state of research, as well as its focus and direction. This paper makes a substantial contribution to the field by conducting a comprehensive bibliometric analysis of the existing literature, highlighting key findings and implications, as well as future research directions.
We conclude the issue with the paper titled “Nomination And Remuneration Committee: A Review of Literature,” co-authored by Ferdy Putra and Doddy Setiawan. This paper proposes to synthesize the diverse literature on nomination and remuneration committees and provide avenues for future research. This study provides a comprehensive literature review of theoretical and empirical studies published in reputable international journals indexed by Scopus. Comprehensive literature review shows that nomination and remuneration committees play a role in improving board performance and company performance, reducing agency conflicts and improving corporate governance to provide implications for companies, regulators and investors and pave the way for future research.
We hope you enjoy this issue of JCMS. Should you have any specific suggestions for future releases, please feel free to contact us. We value your input. JCMS’s website is available at: https://www.emeraldgrouppublishing.com/journal/jcms
Best Regards,
Professor Guler Aras
Editor in Chief, Journal of Capital Markets Studies
About the author
Professor Guler Aras is an academic, civil society leader and researcher who leads key studies on finance, corporate governance, corporate sustainability and integrated reporting. She is Professor of Finance and Accounting at Yildiz Technical University in Istanbul, where she served as the Dean of the Faculty of Business and Dean of the Graduate School for many years. She spent a year as a visiting professor at the Georgetown University McDonough School of Business in Washington, DC. Founded the Center for Finance Governance and Sustainability (CFGS), she is known as the ambassador of governance and sustainability. Professor Aras, who is a member of the Integrated Reporting and Connectivity Council -IRCC, the advisory body to the IFRS Foundation Trustees, the IASB and the ISSB, pioneered a global initiative with the Integrated Reporting Association Turkey (ERTA), of which she is the founding chair.
Professor Aras is the author of more than 25 international books. She contributed to more than 300 articles in international journals and conferences and carried out numerous granted international projects. She is also the founding Editor-in-Chief of the Journal of Capital Market Studies and Editor of Routledge’s Finance, Governance and Sustainability Book Series. Professor Aras is the founder and board member of numerous national and international professional and academic organizations and a member of the Accountancy Europe Corporate Governance Task Force. She has spoken extensively at professional and academic conferences and has served as a consultant to several governmental and commercial organizations such as the Minister of Development, Minister of Finance, Undersecretary of Treasury and Minister of Labor and Social Security Employment in Turkey. She also serves as a board member of the Turkish Capital Markets Association. Professor Aras writes a newspaper column. She focuses on the education of the next generation of academics and business leaders who could promote sustainable solutions for societal and corporate challenges. She has been crowned one of the most inspirational women in Turkey for 2020.