BACKGROUND IN the early stages of World War II the U.S. Navy used the Lockheed PV‐1 (Ventura) in considerable quantities as a land‐based patrol plane for anti‐submarine and…
Abstract
BACKGROUND IN the early stages of World War II the U.S. Navy used the Lockheed PV‐1 (Ventura) in considerable quantities as a land‐based patrol plane for anti‐submarine and anti‐surface vessel patrol and attack. Inasmuch as the PV‐1 was the first high speed land based patrol aeroplane used by the U.S. Navy, and realizing that its aero‐dynamic configuration grew out of the commercial Lockheed Lodestar, it can be understood that its tactical utility was a compromise.
Tarek Eldomiaty, Rasha Hammam, Yasmeen Said and Alaa Safwat
This chapter offers an empirical examination of the impact of World Governance indicators (WGIs) on stock market development. The understanding is based on the premise of…
Abstract
This chapter offers an empirical examination of the impact of World Governance indicators (WGIs) on stock market development. The understanding is based on the premise of institutional economics that strong institutional governance, in terms of laws and regulations, results in positive developments in financial institutions.
The data which covers the years 1996–2016, include all world countries where a stock market operates. The authors use standard statistical tools that include Johansen co-integration test, linearity, normality tests, and regression analysis, together with discriminant analysis as a robustness check.
The empirical findings show that (a) a negative association exists between Voice and Accountability and stock market development, (b) a positive association exists between each of Political Stability, Government Effectiveness, Regulatory Quality, Rule of Law and Control of Corruption, and stock market development for most World’s regions stock markets, (c) both Voice and Accountability and Political Stability indicators are the major influential indicators for the stock market development across world stock markets.
This chapter offers quantitative evidence about the benefits of strong institutional governance to stock market development. In addition, the chapter offers significant guidelines to policymakers regarding the institutional factors that can be enhanced to promote stock market development.
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This paper examines the reaction of the Egyptian stock market to two substantial devaluations of the Egyptian pound (EGP) in 2022 and tests the informational efficiency of the…
Abstract
Purpose
This paper examines the reaction of the Egyptian stock market to two substantial devaluations of the Egyptian pound (EGP) in 2022 and tests the informational efficiency of the Egyptian market.
Design/methodology/approach
The paper uses the event study framework to analyze the significance and direction of abnormal returns of the leading index of the Egyptian stock market (EGX30) on and around the devaluation days. It employs both the constant mean model and the market model to estimate the normal returns of the EGX30. Additionally, the paper uses data on two equity indices, one global and one for emerging markets, as benchmarks for normal returns.
Findings
The paper finds that the Egyptian stock market experienced significant positive abnormal returns on the devaluation days of the EGP in March and October of 2022, indicating a positive market reaction to the devaluation. Furthermore, evidence suggests that the Egyptian market may not be informationally efficient as significant positive abnormal returns were observed two weeks before and two weeks after the devaluation day, suggesting news leaks and delayed reactions, respectively.
Originality/value
This study is the first to examine the impact of the recent two devaluations of the EGP in 2022 on the Egyptian stock market. It complements existing literature by analyzing the immediate market reaction to two consecutive devaluations in an African country. Furthermore, the paper evaluates the efficiency of the Egyptian market in processing information related to exchange rates.
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Mohamed Ismail Mohamed Riyath, Debeharage Athula Indunil Dayaratne and Athambawa Jahfer
This study aims to comprehensively examine the relationship between initial public offering (IPO) activities and macroeconomic factors in Sri Lanka.
Abstract
Purpose
This study aims to comprehensively examine the relationship between initial public offering (IPO) activities and macroeconomic factors in Sri Lanka.
Design/methodology/approach
This study uses principal component analysis (PCA) and autoregressive distributed lag (ARDL) techniques to examine the relationship between IPO activities and macroeconomic factors. Ten macroeconomic variables are transformed into principal components (factors) using PCA. Then, ARDL is applied to investigate the long- and short-term relationships between IPO activities and the transformed macroeconomic factors.
Findings
The empirical investigation identifies three principal factors from the ten macroeconomic variables, of which two factors have a significant long-run association with IPO activities: “return on investment (RTOI)” and “economic and market development (ECMD).” In the short run, “trade openness and banking sector development (TOBD)” and RTOI are significantly associated with IPO activities.
Research limitations/implications
The study was based on 30 years of observations, which passed all diagnostic tests but may be insufficient for generalizing the findings. Future studies could use high-frequency data (monthly or quarterly) to increase the number of observations and repeat the method and analysis. Also, while the symmetrical ARDL method was used in this study, an asymmetrical ARDL method may provide more insightful results and interpretations.
Practical implications
The study highlights the importance of considering both long- and short-term associations when analyzing the impact of macroeconomic variables on IPO activities.
Originality/value
This study is the first to comprehensively examine the relationship between IPO activities and macroeconomic variables using PCA and the ARDL technique. The study provides insight into the macroeconomic factors that influence IPO activities in Sri Lanka and highlights the importance of considering long- and short-term associations.
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Udemezue Ndubuisi Nnakee, Chi Aloysius Ngong, Chinyere C. Onyejiaku, Shadrack Moguluwa and Josaphat Uchechukwu Joe Onwumere
This paper aims to examine the long-run relationship between stock market development and Nigerian economic growth from 1980 to 2020.
Abstract
Purpose
This paper aims to examine the long-run relationship between stock market development and Nigerian economic growth from 1980 to 2020.
Design/methodology/approach
Market capitalization, number of listed companies, total value traded ratio and turnover ratio are used. An autoregressive distributed lag model is used for the analysis.
Findings
The market capitalization ratio and turnover ratio have positively significant links with economic growth. The number of listed companies has a negative and non-significant impact on economic growth. Total value traded ratio has a negatively significant link with economic growth in the short run. The positive but insignificant relationship between traded value ratio and turnover ratio in the long run growth means that the Nigerian stock market is growth inducing and on the right track as stock market liquidity drives growth.
Research limitations/implications
The government and Security Exchange Commission should increase the market liquidity level by improving the trading infrastructure. The government and regulatory authorities should improve and effectively implement the existing policies that would ensure stock market growth. This facilitates the investors’ speed to purchase and sell shares. The Securities and Exchange Commission should reduce transaction costs to encourage active trading activities. The market should be diversified with investment instruments such as derivatives, futures and swap options which would limit the adverse effect of listed companies in the market. To increase the stock market liquidity, the Security and Exchange Commission should apply moral suasion to bring private companies that have met certain financial thresholds to convert to public companies. Government should improve on the legislation to encourage more private companies to list on the stock exchange.
Originality/value
The study findings add value in that stock market development has a positive impact on economic growth in Nigeria.
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The purpose of this paper is to examine the macroeconomic determinants of stock market development in South Africa during the period 1975–2015. Specifically, it examines the…
Abstract
Purpose
The purpose of this paper is to examine the macroeconomic determinants of stock market development in South Africa during the period 1975–2015. Specifically, it examines the impact of banking sector development, economic growth, inflation rate, real interest rate and trade openness on the development of the South African stock market.
Design/methodology/approach
The author employs autoregressive distributed lag bounds testing procedure that allows the author to empirically investigate both the short- and long-run relationships between the stock market development and its determinants in the context of South Africa. In addition, the author also conducts a sensitivity analysis by accounting for the presence of structural breaks in the underlying series to check for the robustness of the estimation.
Findings
This paper confirms the findings by other studies that banking sector development and economic growth promote stock market development, while inflation rate and real interest rate inhibit stock market development. In addition, this paper finds an interesting result in the fact that trade openness has a negative impact on stock market development, which is different from the findings of many other studies.
Originality/value
Currently, while the theoretical and empirical literature presents diverse views on the relationship between each determinant and stock market development, no study has focussed on the South African stock market. Given the significant role that the South African stock market plays in Africa as measured by its market capitalisation and market capitalisation ratio, there is a need for a better understanding of the macroeconomic factors influencing its development.
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Sin-Yu Ho and Nicholas M. Odhiambo
The purpose of this paper is to examine the macroeconomic drivers of stock market development in Hong Kong during the period 1992Q4-2016Q3. Specifically, it investigates the…
Abstract
Purpose
The purpose of this paper is to examine the macroeconomic drivers of stock market development in Hong Kong during the period 1992Q4-2016Q3. Specifically, it investigates the impact of banking sector development, economic growth, inflation rate, exchange rate, trade openness and stock market liquidity on stock market development.
Design/methodology/approach
This paper uses quarterly time-series data covering the period 1992Q4-2016Q3, which have been obtained from various reliable sources. The study uses the autoregressive distributed lag bounds testing procedure to identify both the long- and short-run macroeconomic drivers of stock market development in Hong Kong.
Findings
We find that banking sector development and economic growth have positive impacts on stock market development, whereas the inflation rate and the exchange rate have negative impacts on stock market development both in the long and short run. In addition, the results show that trade openness has a positive long-run impact but a negative short-run impact on stock market development.
Originality/value
Despite the phenomenal growth of stock market in Hong Kong, there are, to the best of the authors’ knowledge, no relevant studies on the macroeconomic drivers of stock market development in Hong Kong. Therefore, this paper endeavours to enrich the literature by examining the macroeconomic drivers of stock market development in Hong Kong during the period 1992Q4-2016Q3.
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Looking at organizational decision and choices in the 1990s, it is tempting to conclude that we live in an era of focus and downsizing. The time of the conglomerate has passed…
Abstract
Looking at organizational decision and choices in the 1990s, it is tempting to conclude that we live in an era of focus and downsizing. The time of the conglomerate has passed. Downsizing can always be justified to improve efficiency, but only if it is really rightsizing to prepare a strong base for renewed growth. Focus, however, is a reflection of the way many organizations are choosing to deal with a series of issues they face, for which there are no black and white, right and wrong answers, and all of which interact with each other systematically. Moreover, focus is fashionable and diversity is not. This paper uses these often paradoxical issues to examine the complexity of strategy and explain why the search for winning strategic positions comprises a series of inter‐dependent choices.
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Wioleta Kucharska and Piotr Mikołajczak
Personal branding becomes a new in-demand skill for all professionals today. To be well-known helps to achieve success in the networked business environment. Personal…
Abstract
Purpose
Personal branding becomes a new in-demand skill for all professionals today. To be well-known helps to achieve success in the networked business environment. Personal relationships and a good reputation in the reality of network economy help young artists and art designers move up the career ladder. This paper aims to discuss a problem of artists who often find it difficult to define their artistic and self-distinction identities. The concept of personal brand and branding seems quite irrelevant, especially in reference to their own selves. People usually associate branding with marketing, which in our minds is usually the same as “pushy” and aggressive sales practices. Their find problematic to promote themselves. The purpose of this paper is to highlight that, based on existing theories, artistic identity creation in connection with the skill of personal branding is crucial for personal success in the profession of today’s young artists and art designers.
Design/methodology/approach
The study was conducted based on the data originally collected among artists, designers, architecture professionals and students. The data have been analyzed with the equal structural equation modeling method.
Findings
This paper presents empirical evidence that if artists view themselves as personal brands, it affects their personal performance in a positive way.
Practical implications
Authors claim that a teaching curriculum for young adult artists should include a personal branding program, to help them find and support their artistic identity and express their personal values and self-brand distinction, and leverage them to build their professional career.
Originality/value
This is one of the first studies to quantify the self-brand performance of young art designers as a benefit of being self-brand oriented.
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The paper aims to explore how the undue state control leads to the weak stock market in China. It analyzes how the undue state control is exerted in some key areas in the Chinese…
Abstract
Purpose
The paper aims to explore how the undue state control leads to the weak stock market in China. It analyzes how the undue state control is exerted in some key areas in the Chinese stock market. This paper intends to expand the existing literature in the relationships among law, politics, and economy.
Design/methodology/approach
This paper mainly adopts the exploratory method to analyze the undue state influences. Under some circumstances, comparative study and historical explanation are also adopted.
Findings
The paper suggests that to create a strong stock market and facilitate the development of the listed companies and the whole economy, the state should first release its control on the stock market.
Research limitations/implications
Various fields are contained in a stock market, in most of which the undue state control can be observed. In this paper, only some key ones are explored. Further research on other fields and if possible more first‐hand data are necessary.
Practical implications
This paper not only offers an answer to concerns on the various misconducts in the inefficient Chinese stock market and helps to realize the possible ways out of such dilemma, but also it offers implications for other emerging economies.
Originality/value
The on‐going debate on the role of common‐law versus civil‐law system in the capital market may have ignored the state involvement. This paper indicates that it is the undue state control rather than the legal system that leads to the weak stock market in China.