Oct'19
The IUP Journal of Applied Finance
Focus
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| Article | Price (₹) | ||
| The Determinants of Stock Market Return in Ghana: FMOLS and DOLS Approaches |
100
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| The Relationship Between Human Resource Disclosure and Company Characteristics: A Study on Indian Companies |
100
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| Dynamics of Corporate Capital Structure Choices and Intervening Forces: Indian Evidence |
100
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The Determinants of Stock Market Return in Ghana: FMOLS and DOLS Approaches
The paper seeks to examine the impact of macroeconomic (external and internal) and political variables on the returns of Ghanaian stock market. The study employs lag of stock market return, consumer price index, 91-day treasury bill rate, exchange rate between domestic currency and US dollar, real gross domestic product, international crude oil prices, London Stock Exchange (LSE) all share index and political cycle (independent variables) and monthly stock market returns (dependent variable). The Fully Modified Ordinary Least Square (FMOLS) and Dynamic Ordinary Least Square (DOLS) models are used to ensure efficient, robust and reliable results. Whilst lag of stock market returns, political cycle and real gross domestic product exerts positive effect on stock market returns, the effect from treasury bills, consumer price index, exchange rate, crude oil and LSE is negative. The significant impact of crude oil prices, LSE all share index and political cycle on stock market returns is seen as revelations of the study. The findings of this study have important implications for understanding stock market return in Ghana. It may provide insights about other key determinants of stock market variables that have been ignored by most scholars.
The Relationship Between Human Resource Disclosure and Company Characteristics: A Study on Indian Companies
This study examines the extent of human resource disclosure in the annual reports by Indian corporate and its relationship with various company characteristics. Data is collected from the annual reports of the companies listed on the stock exchange Dollex-200 for the year ending March 31, 2014 and the level of disclosure is measured through Human Resource Disclosure Index (HRDI). The result indicates that in size, only market capitalization of the company positively and significantly affects the amount of information disclosed in annual reports. On the contrary, there is a non-significant relationship between HRDI and other company characteristics (profit after tax, net sales, total assets, age, type of industry, profitability, liquidity and leverage). In addition, the study also finds that 77% of the Indian companies have HRDI between 20% and 50% in their annual reports.
Dynamics of Corporate Capital Structure Choices and Intervening Forces: Indian Evidence
How do the firms revise their capital structure dynamics at stake? This study hypothesizes that the corporate capital structure dynamics spin at changes in the intervening forces. It shows the presence of intervening forces with the Indian firms� financing data. It methodologically uses the Partial Adjustment Models (PAM) in exploring firms� optimal dynamic adjustments and extends the PAM. It shows backward and forward adjustments at separating and semi-separating equilibriums for both high-value and low-value firms. The study also reveals that a pooling equilibrium with firms� dynamic adjustment speeds can be otherwise influenced by the standard errors in separating and semiseparating equilibriums. Firms� choice of Dynamic Adjustment Speed (DAS) is neither a generalized singleton variable, nor does it spin in similar direction across firms and intervening forces. In dynamic financing choices, DASs are divergent at firms� forward and backward adjustments across high-value and low-value firms. Firms� divergent adjustments depend on the presence of macroeconomic variables, nature (forward or backward) of adjustments, and firm-specific financing and non-financing expectation as well. The sample firms plausibly spin to divergent financing and non-financing motives at their dynamic provisions for expected changes in the exogenous variables. Firms� dynamic financing and non-financing motives intervene in their divergent DASs. The effects are transitory and temporary but deliberate at their deviations from the target capital structures. The study confirms the spin effects of intervening forces rather than labeling them as random noise only.