Template-Type: ReDIF-Article 1.0 Author-Name: Mayank Joshipura Author-X-Name-First: Mayank Author-X-Name-Last: Joshipura Author-Name: Manoj Panda Author-X-Name-First: Manoj Author-X-Name-Last: Panda Title: Effect of mergers and acquisitions on short-term gain to equity shareholders of acquiring firms in India Abstract: This paper examines the effect of mergers and acquisitions announcements on short-term gain for the acquiring firm's shareholders using the event study method. The study analyses 332 acquiring firms in post-financial crisis era (2009-2015). We report positive wealth effect leading to and on announcement. The effect reverses subsequently. Positive abnormal return leading to announcement indicates leakage of information before the formal announcement. Results of this study is consistent with similar other studies in developed as well as emerging markets. Journal: Afro-Asian J. of Finance and Accounting Pages: 1-20 Issue: 1 Volume: 9 Year: 2019 Keywords: mergers and acquisitions; M%A; event study; market efficiency; India. File-URL: http://www.inderscience.com/link.php?id=96908 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:9:y:2019:i:1:p:1-20 Template-Type: ReDIF-Article 1.0 Author-Name: Peterson K. Ozili Author-X-Name-First: Peterson K. Author-X-Name-Last: Ozili Title: Bank loan loss provisions, risk-taking and bank intangibles Abstract: This article investigates the relationship between discretionary loan loss provisions and bank intangibles among African banks. Prior studies have focused on how intangible assets affect firms' profitability and valuation decisions with almost no focus on the role of loan loss provisions. We investigate whether banks increase (decrease) loan loss provisions in response to risks associated with investment in intangible assets. We find that discretionary loan loss provisions are inversely associated with bank intangible assets and change in intangible assets, but the inverse association is weakened in environments with strong investor protection. We observe that income smoothing is reduced among banks that have large intangible asset investment. Moreover, income smoothing is pronounced among banks that have few intangible asset investments but this behaviour is reduced for banks in environments with strong minority shareholders right protection. Journal: Afro-Asian J. of Finance and Accounting Pages: 21-39 Issue: 1 Volume: 9 Year: 2019 Keywords: banks; income smoothing; financial institutions; financial reporting; intangible assets; loan loss provisions; signalling; bank valuation; bank risk-taking; Africa. File-URL: http://www.inderscience.com/link.php?id=96910 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:9:y:2019:i:1:p:21-39 Template-Type: ReDIF-Article 1.0 Author-Name: Odunayo Magret Olarewaju Author-X-Name-First: Odunayo Magret Author-X-Name-Last: Olarewaju Author-Name: Stephen Oseko Migiro Author-X-Name-First: Stephen Oseko Author-X-Name-Last: Migiro Author-Name: Mabutho Sibanda Author-X-Name-First: Mabutho Author-X-Name-Last: Sibanda Title: Examining bank-specific determinants of the dividend payout ratio of Sub-Saharan Africa banks: the panel GMM approach Abstract: Dividend payout policy of banks has been the commonest dividend policy in commercial banks world-wide owing to the assumption that it will minimise agency costs in the banks. Hence, this study adopts the dynamic panel two-step system and differenced GMM in analysing the data of 250 commercial banks from 30 countries in Sub-Saharan Africa (SSA) for the period 2006 to 2015 to examine the determinants of the dividend payout ratio of these banks. The empirical results reveal that past year dividend is the most significant determinant of current year dividend. Taxation and capital adequacy ratio, which are the legal and regulatory factors considered, are found to be insignificant. Our findings reveal earnings-after-tax and leverage as being significant determinants of payout ratio in SSA banks. Hence, Lintner's model holds in SSA banks as a region and it is, therefore, recommended that it must be strictly followed in setting the dividend process of commercial banks in SSA. Journal: Afro-Asian J. of Finance and Accounting Pages: 40-59 Issue: 1 Volume: 9 Year: 2019 Keywords: system-GMM; differenced-GMM; Lintner model; payout policy; agency cost; capital adequacy. File-URL: http://www.inderscience.com/link.php?id=96912 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:9:y:2019:i:1:p:40-59 Template-Type: ReDIF-Article 1.0 Author-Name: Nabila Nisha Author-X-Name-First: Nabila Author-X-Name-Last: Nisha Author-Name: Afrin Rifat Author-X-Name-First: Afrin Author-X-Name-Last: Rifat Title: The influence of tax manipulation upon financial performance: evidence from Bangladesh Abstract: Many firms in developing countries are known to report higher book income to shareholders and lower taxable income to taxation authorities in the same reporting period. Generally, this gap between financial and taxable income suggests that firms are taking advantage of book-tax differences for avoiding tax payments. However, such tax manipulations can often affect firms' financial performances. This study therefore aims to analyse the empirical relationships between book-tax differences and tax manipulations, and their overall impact upon firms' financial performances. A sample of 111 companies listed on Dhaka Stock Exchange (DSE) is analysed to conduct this study using linear panel regressions. Findings indicate that firms disclose different tax information for taxation authorities compared to stakeholders in order to manage earnings and avoid taxes in Bangladesh. Moreover, firms use tax shelters to escape from tax payments and report a good financial picture, thereby confirming that tax manipulations influence firms' financial performances. Journal: Afro-Asian J. of Finance and Accounting Pages: 60-79 Issue: 1 Volume: 9 Year: 2019 Keywords: book-tax differences; BTDs; earnings management; tax shelter; tax manipulation; financial performance; Bangladesh. File-URL: http://www.inderscience.com/link.php?id=96914 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:9:y:2019:i:1:p:60-79 Template-Type: ReDIF-Article 1.0 Author-Name: An Thai Author-X-Name-First: An Author-X-Name-Last: Thai Author-Name: Tri M. Hoang Author-X-Name-First: Tri M. Author-X-Name-Last: Hoang Title: The impact of large ownership on capital structure of Vietnamese listed firms Abstract: This paper seeks to explore the determinants of the capital structure of Vietnamese listed companies with an emphasis on large ownership based on an updated sample of 261 firms listed on Ho Chi Minh Stock Exchange during the period 2007-2014. Using several estimators, including pooled ordinary least squares, random effects, fixed effects and fixed effects regression with clusters, our empirical results demonstrate that the proportion of blockholders investment is linear and negatively associated with short-term, total book and market leverage. There is no evidence about the non-linear relationship between large ownership and the capital structure of the observed firms. Journal: Afro-Asian J. of Finance and Accounting Pages: 80-100 Issue: 1 Volume: 9 Year: 2019 Keywords: large ownership; blockholders; capital structure; Vietnam. File-URL: http://www.inderscience.com/link.php?id=96915 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:9:y:2019:i:1:p:80-100 Template-Type: ReDIF-Article 1.0 Author-Name: Abdalmuttaleb M.A. Musleh Al-Sartawi Author-X-Name-First: Abdalmuttaleb M.A. Musleh Author-X-Name-Last: Al-Sartawi Author-Name: Zakeya Sanad Author-X-Name-First: Zakeya Author-X-Name-Last: Sanad Title: Institutional ownership and corporate governance: evidence from Bahrain Abstract: This study aims to investigate the relationship between institutional ownership and the level of corporate governance in the Kingdom of Bahrain. A multi-regression analysis model was used to investigate the relationship between corporate governance and institutional ownership. Additionally, certain firm characteristics were controlled to study the influence of institutional investment on governance. The results indicated that there is a significant negative relationship between institutional ownership and the level of corporate governance. The researchers assumed that governance of firms may take a number of forms that would decrease the need for improving other corporate governance mechanisms as a result. This study offers recommendations to various stakeholders, whereby companies should hire external auditors that are from the Big4, because they would encourage and contribute to increasing the level of corporate governance. Furthermore, workshops and training courses should be conducted in order to increase the awareness of the corporate governance code in Bahrain. Journal: Afro-Asian J. of Finance and Accounting Pages: 101-115 Issue: 1 Volume: 9 Year: 2019 Keywords: institutional ownership; corporate governance; Kingdom of Bahrain. File-URL: http://www.inderscience.com/link.php?id=96916 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:9:y:2019:i:1:p:101-115 Template-Type: ReDIF-Article 1.0 Author-Name: Buthiena Kharabsheh Author-X-Name-First: Buthiena Author-X-Name-Last: Kharabsheh Author-Name: Mishiel Said Suwaidan Author-X-Name-First: Mishiel Said Author-X-Name-Last: Suwaidan Author-Name: Ramadan Elfaitouri Author-X-Name-First: Ramadan Author-X-Name-Last: Elfaitouri Title: Nonlinear association between controlling shareholders and leverage: evidence from Jordan Abstract: This paper investigates the relationship between controlling shareholders' ownership, identity and financial leverage. A sample of 60 industrial firms listed on Amman Stock Exchange over the period of 2010 to 2015 is empirically tested. Using a dynamic estimator to control for all endogeneity types, our results support an inverted U-shape relationship between controlling shareholders and financial leverage. Controlling shareholders rely more on debt at low levels of ownership to maintain control. However, they rely less on debt, which is found in this study to be 53%, to avoid financial distress. These results provide support for the trade-off theory. Our findings also reveal that family firms have higher leverage ratios than non-family firms. Further, institutional shareholders negatively affect financial leverage, thus assuming a substitution role. Journal: Afro-Asian J. of Finance and Accounting Pages: 193-212 Issue: 2 Volume: 9 Year: 2019 Keywords: controlling shareholders; financial leverage; corporate governance; family firms; capital structure; ownership structure; Jordan; dynamic estimator; nonlinear; ownership. File-URL: http://www.inderscience.com/link.php?id=99482 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:9:y:2019:i:2:p:193-212 Template-Type: ReDIF-Article 1.0 Author-Name: M. Manoharan Author-X-Name-First: M. Author-X-Name-Last: Manoharan Author-Name: S. Visalakshmi Author-X-Name-First: S. Author-X-Name-Last: Visalakshmi Title: The interrelation between Baltic Dry Index a practical economic indicator and emerging stock market indices Abstract: The Baltic Dry Index is a leading indicator that generates a vibrant panorama on the global demand for commodities and raw materials as it provides a glimpse into the future. This study uses the analytical content of the Baltic Dry Index (BDI) to explore the relationship between maritime markets and stock markets with respect to emerging markets and the Stock Indices of India and China (i.e., NIFTY and Shanghai Composite Index) using VAR SURE modelling, impulse response and VAR Granger causality test for the period 1st January 2011 to 31st December 2015. The overall results exhibit that BDI influences NIFTY marginally and also produces a slight impact on SSE composite index due to the influence of international economic environment, particularly by international traders. The resulting model will aid investors and decision makers to make their financial conclusions more precisely. Journal: Afro-Asian J. of Finance and Accounting Pages: 213-224 Issue: 2 Volume: 9 Year: 2019 Keywords: Baltic Dry Index; BDI; NIFTY; Shanghai Composite Index; maritime market; stock market; VAR SURE modelling. File-URL: http://www.inderscience.com/link.php?id=99483 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:9:y:2019:i:2:p:213-224 Template-Type: ReDIF-Article 1.0 Author-Name: Fahad Almudhaf Author-X-Name-First: Fahad Author-X-Name-Last: Almudhaf Title: Pricing efficiency of exchange traded funds tracking the Gulf Cooperation Countries Abstract: This paper analyses the pricing efficiency of exchange traded funds (ETFs) as measured by the level and persistence of the deviation between market prices and net asset value (NAV). Studying ETFs tracking the unexplored Gulf Cooperation Countries (GCC), we find that Saudi Arabia exhibits the largest dollar premium, of $0.41, on average. On the other hand, the UAE trades at an average discount of $0.06. In addition, deviations (premiums or discounts) persist for as long as four days in Kuwait, while they disappear after one day in Saudi Arabia and Qatar. These empirical findings show that ETFs do not fully replicate the performance of their respective underlying benchmarks. Pricing inefficiencies exist in ETFs with significant tracking errors. Moreover, there is a positive and significant relationship between returns and contemporaneous premiums, while returns and lagged premiums are negatively related. This casts doubt on the efficient market hypothesis. Using vector error correction model (VECM), we find evidence of significant price discovery in ETFs. Our results contribute to better understanding of ETFs tracking the performance of GCC markets. Journal: Afro-Asian J. of Finance and Accounting Pages: 117-140 Issue: 2 Volume: 9 Year: 2019 Keywords: pricing efficiency; tracking error; exchange traded funds; ETFs; Qatar stock; UAE stock; Saudi Arabia stock; iShares. File-URL: http://www.inderscience.com/link.php?id=99485 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:9:y:2019:i:2:p:117-140 Template-Type: ReDIF-Article 1.0 Author-Name: Fadi Alasfour Author-X-Name-First: Fadi Author-X-Name-Last: Alasfour Author-Name: Firas Dahmash Author-X-Name-First: Firas Author-X-Name-Last: Dahmash Title: The determinants of capital structure: the Levant versus Gulf Cooperation Council firms Abstract: The paper investigates how firms operating in the Levant economies (Jordan) and the Gulf Cooperation Council economies (Bahrain) determine their capital structure. Using unbalanced panel data and multiple regressions, the paper finds that the leverage ratio is positively affected by the size of the firm, but declines with an increase in the firm's profitability, the tangibility of assets and the firm's liquidity in both types of economy. The leverage ratio is also affected by the market conditions in which the firm operates. The degree and effectiveness of these determinants are dependent on the country's legal and financial traditions. Overall, the capital structure of a firm is heavily influenced by the economic environment and its institutions, corporate governance practices, tax systems, the borrower-lender relation, exposure to capital markets and level of investor protection in the country in which the firm operates. Journal: Afro-Asian J. of Finance and Accounting Pages: 225-241 Issue: 2 Volume: 9 Year: 2019 Keywords: capital structure; Levant economies; Gulf Cooperation Council economies; emerging markets; Middle East countries. File-URL: http://www.inderscience.com/link.php?id=99486 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:9:y:2019:i:2:p:225-241 Template-Type: ReDIF-Article 1.0 Author-Name: Muhammad Naeem Shahid Author-X-Name-First: Muhammad Naeem Author-X-Name-Last: Shahid Author-Name: Semei Coronado Author-X-Name-First: Semei Author-X-Name-Last: Coronado Author-Name: Abdul Sattar Author-X-Name-First: Abdul Author-X-Name-Last: Sattar Title: Stock market behaviour: efficient or adaptive? Evidence from the Pakistan Stock Exchange Abstract: The study empirically investigates the adaptive market hypothesis (AMH) in the Pakistan stock market over the period of 1992 to 2015. Daily data of returns (KSE-100) is divided into eight sub-samples of equal length of three years each and into different market conditions and are subjected to linear/nonlinear tests to elucidate how market-efficiency has behaved over time and whether a relationship exists between market conditions and levels of return predictability. The tests reveal that returns have gone through periods of dependence and independence over eight sub-samples thus Pakistan Stock Exchange is an adaptive market and consistent with the AMH. Furthermore, certain market conditions are more conducive to the predictability of returns as market conditions have also gone through episodes of significant dependence and independence of return predictability, which is also consistent with the AMH. Therefore, overall results of the study suggest that the AMH better elucidates the behaviour of stock returns than conventional efficient market hypothesis (EMH). Journal: Afro-Asian J. of Finance and Accounting Pages: 167-192 Issue: 2 Volume: 9 Year: 2019 Keywords: adaptive market hypothesis; AMH; efficient market hypothesis; EMH; market conditions; linear dependence; nonlinear dependence. File-URL: http://www.inderscience.com/link.php?id=99488 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:9:y:2019:i:2:p:167-192 Template-Type: ReDIF-Article 1.0 Author-Name: Monika Chopra Author-X-Name-First: Monika Author-X-Name-Last: Chopra Author-Name: Rupish Saldi Author-X-Name-First: Rupish Author-X-Name-Last: Saldi Title: Are stock returns persistent? Study on Asian stock exchanges Abstract: The objective of this paper is to examine the existence of persistence effect in the daily (based on five years' daily closing price) and intraday (based on 140 trading days five-minute stock price) returns of five Asian stock exchanges, viz. Nifty, Hang Seng, Nikkei, Shanghai Composite and Jakarta Composite. We find that with five-minute 140 trading days' data, i.e., in the short term, the Indian and Indonesian markets show persistence. In the long term, after accounting for structural breaks, returns do not show persistence in Indian, Chinese and Indonesian exchanges. We conclude that for these exchanges, in the long term, returns may move randomly, thus removing any price prediction possibility. In addition, Japanese stock markets are anti-persistent in both the short term and the long term while Hong Kong showed anti-persistence in long term. Hence, these markets are expected to reward contrarian-trading strategies like short-interest ratio, put-call ratio, open interest, and mutual funds cash position. Journal: Afro-Asian J. of Finance and Accounting Pages: 141-166 Issue: 2 Volume: 9 Year: 2019 Keywords: persistence; long memory; GPH; ARFIMA; Asian exchanges; structural break JEL classification E44; G10. File-URL: http://www.inderscience.com/link.php?id=99497 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:9:y:2019:i:2:p:141-166 Template-Type: ReDIF-Article 1.0 Author-Name: Habib Hasnaoui Author-X-Name-First: Habib Author-X-Name-Last: Hasnaoui Author-Name: Ibrahim Fatnassi Author-X-Name-First: Ibrahim Author-X-Name-Last: Fatnassi Title: The impact of bank capital on profitability and risk in GCC countries: Islamic vs. conventional banks Abstract: This study analyses how capital influences profitability and risk in the context of Islamic and conventional banking in Gulf Cooperation Council (GCC) countries. It achieves this through structure-conduct-performance, moral hazard, and regulatory hypotheses. We apply the generalised method of moments (GMM) technique for dynamic panels using bank-level data from 85 banks for the 2003-2011 period. We first found that highly capitalised Islamic banks generate low profitability, while in contrast, highly capitalised conventional banks generate high profitability. Secondly, we found highly capitalised GCC banks (both Islamic and conventional) to be characterised by greater risk. Additionally, all profitability and risk variables demonstrate persistence. We then ultimately arrive at the same conclusions about capital, profitability, and risk relationship with the introduction of regulatory variables. Journal: Afro-Asian J. of Finance and Accounting Pages: 243-268 Issue: 3 Volume: 9 Year: 2019 Keywords: bank capital; profitability; risk; Islamic finance; dynamic panel; financial regulation. File-URL: http://www.inderscience.com/link.php?id=100976 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:9:y:2019:i:3:p:243-268 Template-Type: ReDIF-Article 1.0 Author-Name: Nik Mohamad Zaki Nik Salleh Author-X-Name-First: Nik Mohamad Zaki Nik Author-X-Name-Last: Salleh Author-Name: Chong Lee-Lee Author-X-Name-First: Chong Author-X-Name-Last: Lee-Lee Author-Name: Prem Lal Joshi Author-X-Name-First: Prem Lal Author-X-Name-Last: Joshi Author-Name: Shaista Wasiuzamman Author-X-Name-First: Shaista Author-X-Name-Last: Wasiuzamman Title: Corporate governance, disclosure and firm performance: empirical findings from Malaysia Abstract: This study examines the effect of corporate governance, disclosure and firm characteristics on firm performance by taking data from the 2013 financial year annual reports of large public listed companies (based on market capitalisation) in Malaysia. Using multiple regression analysis, this study finds that the effect on firm performance, namely ROA, ROE and Tobin's Q, is different. Board size, the percentage of independent directors on the board and percentage of ownership concentration in firms have a significant negative relationship with ROA. ROE shows a significant negative association with board size, AC independence and ownership concentration. Tobin's Q only shows a significant negative relationship with board size. The findings in this study contribute to literature that good corporate governance characteristics, appropriate disclosure of corporate governance information and firm characteristics have improved the performance of listed companies in Malaysia. The study also suggests limitations and directions for future research. Journal: Afro-Asian J. of Finance and Accounting Pages: 269-290 Issue: 3 Volume: 9 Year: 2019 Keywords: performance; ROI; return on equity; ROE; Tobin Q; board size; ownership concentration; corporate governance; disclosure. File-URL: http://www.inderscience.com/link.php?id=100977 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:9:y:2019:i:3:p:269-290 Template-Type: ReDIF-Article 1.0 Author-Name: Yordying Thanatawee Author-X-Name-First: Yordying Author-X-Name-Last: Thanatawee Title: Alignment or entrenchment? Evidence from cash holdings in Thailand Abstract: This paper examines the relationship between managerial ownership and the cash holdings of non-financial firms in Thailand from 2011 to 2015. The results indicate that higher managerial ownership is associated with lower cash holdings, suggesting that managers of Thai firms do not hoard cash for private benefits. Therefore, the findings support the incentive-alignment hypothesis. In addition, the evidence indicates that board size has a negative impact on cash holdings, while board independence does not play a significant role. Furthermore, it is found that profitability, firm size, growth opportunities and cash flow have positive effects on cash holdings, whereas leverage has a nonlinear impact on cash reserves. Journal: Afro-Asian J. of Finance and Accounting Pages: 291-308 Issue: 3 Volume: 9 Year: 2019 Keywords: cash holdings; managerial ownership; corporate governance; board size; board independence; Thailand. File-URL: http://www.inderscience.com/link.php?id=100978 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:9:y:2019:i:3:p:291-308 Template-Type: ReDIF-Article 1.0 Author-Name: Shekhar Mishra Author-X-Name-First: Shekhar Author-X-Name-Last: Mishra Author-Name: Sathya Swaroop Debasish Author-X-Name-First: Sathya Swaroop Author-X-Name-Last: Debasish Title: The quantile dependence between global crude oil price and stock markets in emerging Asia: evidence from major oil consuming nations Abstract: The paper examines the dependence between global crude oil price and stock indices in economies of fast emerging Asian nations, which are also termed to be major oil consumers. The paper employs quantile regression method (QRM) to analyse the relationship by using monthly data from April 2004 to April 2017. Since ordinary least squares (OLS) method estimates from data suffering from structural breaks, non-normality conditions and heterogeneous distribution may be biased and not much favourable, quantile regression method termed to a robust method is adopted to analyse the same. The analysis revealed the asymmetric effects of dependence between crude oil price and stock index returns. The observed positive relation between the given variables was quite contrary to the usual presumption of inverse relation relationship existing for the oil importing nations. The degree of significance for the positive dependence between the crude oil price and stock index returns also varied across the quantiles for economies under study. Journal: Afro-Asian J. of Finance and Accounting Pages: 309-331 Issue: 3 Volume: 9 Year: 2019 Keywords: crude oil; Asian economies; stock returns; quantile regression; ordinary least square; OLS; structural breaks; non-normality conditions; heterogeneous distribution; asymmetric effects; positive dependence. File-URL: http://www.inderscience.com/link.php?id=100980 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:9:y:2019:i:3:p:309-331 Template-Type: ReDIF-Article 1.0 Author-Name: Rasidah Mohd-Rashid Author-X-Name-First: Rasidah Author-X-Name-Last: Mohd-Rashid Author-Name: Ruzita Abdul-Rahim Author-X-Name-First: Ruzita Author-X-Name-Last: Abdul-Rahim Author-Name: Norliza Che-Yahya Author-X-Name-First: Norliza Author-X-Name-Last: Che-Yahya Author-Name: Ahmad Hakimi Tajuddin Author-X-Name-First: Ahmad Hakimi Author-X-Name-Last: Tajuddin Title: Impact of a regulatory change on initial performance of IPOs Abstract: The purpose of this paper is to examine the impact of the Malaysian IPO regulatory change involving lock-up provisions on the initial performance of Malaysian IPOs. This study examines the impact of the revision in the IPO lock-up provision that took effect on February 2008 on the initial returns of 373 IPOs listed between January 2000 and December 2012, using cross-sectional multiple regressions. The findings indicate that the dummy of the lock-up period is positive and significant, validating that the dramatic drop in initial performance of Malaysian IPOs is an attribute of the shorter lock-up period regime. The new shorter lock-up period regime leaves fewer opportunities for speculation activities through IPOs. Investors may strategise to participate in firms that report higher lock-up ratio as it is likely to increase the initial returns. Journal: Afro-Asian J. of Finance and Accounting Pages: 332-348 Issue: 3 Volume: 9 Year: 2019 Keywords: lock-up ratio; lock-up period; signalling; IPOs; initial performance; regulatory; multiple regressions; Asian; Bumiputera requirement; Malaysia. File-URL: http://www.inderscience.com/link.php?id=100981 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:9:y:2019:i:3:p:332-348 Template-Type: ReDIF-Article 1.0 Author-Name: Dea'a Al-Deen Omar Al-Sraheen Author-X-Name-First: Dea'a Al-Deen Omar Author-X-Name-Last: Al-Sraheen Title: The role of the audit committee in moderating the negative effect of non-audit services on earnings management among industrial firms listed on the Amman Stock Exchange Abstract: This paper examines the effectiveness of the audit committee in limiting the adverse effects of the provision of non-audit services (NAS) on earnings management. In addition, the current study examines the effect of surplus free cash flow and NAS on earnings management. Earnings management occurs less frequently when the audit committee is effective. In this study, audit committee effectiveness refers to the overall effectiveness of the committee that was measured using a composite measurement of effectiveness. The sample comprised 336 industrial firms listed on the Amman Stock Exchange from 2014 to 2016. The results documented that the positive relationship between surpluses free cash flow and earnings management. This study contributes to the literature by providing evidence that investors realise that NAS harms the independence of the auditor by creating an economic bond between the auditor and client that could negatively affect audit quality and hence earnings credibility. As does all research, this study suffers from limitations, including the fact that this study sheds the light only on the industrial sector in Jordan, Thus, the need exists for more research to be conducted using other sectors in Jordan and other countries as well to determine the effects of other variables on earnings management from other perspectives. Journal: Afro-Asian J. of Finance and Accounting Pages: 349-361 Issue: 3 Volume: 9 Year: 2019 Keywords: audit committee effectiveness; earning management; Jordan; non-audit services; NAS; surplus free cash flow. File-URL: http://www.inderscience.com/link.php?id=100983 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:9:y:2019:i:3:p:349-361 Template-Type: ReDIF-Article 1.0 Author-Name: Prawat Benyasrisawat Author-X-Name-First: Prawat Author-X-Name-Last: Benyasrisawat Title: Firm attributes, earnings management, and anti-corruption activities in Thai-listed firms Abstract: The Thailand Stock Exchange Commission now requires listed firms to disclose their anti-corruption activities to the public. We explore the unique Thai approach to corruption in three steps. First we study the relationship between anti-corruption activities and firm attributes. Second, we examine the relationship between anti-corruption activities and the quality of earnings. Lastly, we investigate whether the reporting of anti-corruption activity conveys new information to the Thai stock market. The results indicate that firms with superior performance attributes and good corporate governance have higher levels of anti-corruption progress. Earnings management is greater for firms with low levels of anti-corruption progress. We also find evidence that anti-corruption announcements are associated with significant market reactions. This suggests that anti-corruption announcements contain new information that investors consider relevant for firm values. Journal: Afro-Asian J. of Finance and Accounting Pages: 439-458 Issue: 4 Volume: 9 Year: 2019 Keywords: anti-corruption; corruption; earnings management; market alternative investment; market reaction; stock exchange of Thailand; SET; accounting; corporate governance; earnings quality; earnings persistence; firm value; Thailand. File-URL: http://www.inderscience.com/link.php?id=102982 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:9:y:2019:i:4:p:439-458 Template-Type: ReDIF-Article 1.0 Author-Name: Badal Khan Author-X-Name-First: Badal Author-X-Name-Last: Khan Author-Name: Muhammad Tahir Author-X-Name-First: Muhammad Author-X-Name-Last: Tahir Author-Name: Abdul Majid Nasir Author-X-Name-First: Abdul Majid Author-X-Name-Last: Nasir Author-Name: Muhammad Mushtaq Author-X-Name-First: Muhammad Author-X-Name-Last: Mushtaq Title: The impact of companies' internal factors on stock liquidity in Pakistan Abstract: This study aims to find out the impact of corporate internal factors on the stock liquidity of companies listed on Karachi Stock Exchange (KSE) Pakistan. The companies' financial factors, liquidity, leverage, activity, profitability, and valuation multiples, are taken as internal factors, while stock liquidity is measured by illiquidity ratio of Amihud. The study obtains five years' daily data from July 2010 to June 2015 of listed manufacturing firms from KSE. Only those firms are considered that close their financial year in June to avoid any periodical gap between share information and financial data. The regressed relationship of cross panel data is tested using panel least squares. The empirical results conclude that total assets turnover and profit margin are the financial factors that positively influence stock liquidity, whereas debt ratio and return on assets inversely influence stock liquidity. Moreover, the size of the corporation, liquidity (current ratio), market-book multiples, and price-earnings multiples are not significant to influence the stock liquidity. Journal: Afro-Asian J. of Finance and Accounting Pages: 459-473 Issue: 4 Volume: 9 Year: 2019 Keywords: stock liquidity; illiquidity; leverage; profitability; price earnings multiple; price book multiple; Pakistan. File-URL: http://www.inderscience.com/link.php?id=102983 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:9:y:2019:i:4:p:459-473 Template-Type: ReDIF-Article 1.0 Author-Name: Koh Chin Wei Author-X-Name-First: Koh Chin Author-X-Name-Last: Wei Author-Name: Nazrul Hisyam Ab Razak Author-X-Name-First: Nazrul Hisyam Ab Author-X-Name-Last: Razak Author-Name: Fakarudin Kamarudin Author-X-Name-First: Fakarudin Author-X-Name-Last: Kamarudin Title: Bank specific and economic factors on bank's non-interest-based activities in Asia Pacific region Abstract: This study investigates bank specific and economic factors on bank non-interest based activities in Asia Pacific region banking sector over the years 2000-2015. We employ pooled OLS and panel regression to assess the bank specific and economic factors effect on bank non-interest based activities throughout 61 representative banks across Australia, Hong Kong, Korea, Malaysia, Singapore and Thailand in Asia Pacific region. The empirical findings indicate that the bank specific and economic factors do have impact on banks' non-interest based activities in overall countries, developing and developed countries respectively. We also find that bank non-interest based activities also affected by subprime crisis for developed and developing countries. The findings from this study are expected to contribute significantly toward decision-making for regulators, policymakers, bank managers, investors and also to the existing knowledge on performance of the Asia Pacific banking sector. Journal: Afro-Asian J. of Finance and Accounting Pages: 420-438 Issue: 4 Volume: 9 Year: 2019 Keywords: bank's non-interest activities; Asia-Pacific banking; bank specific and economic. File-URL: http://www.inderscience.com/link.php?id=102989 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:9:y:2019:i:4:p:420-438 Template-Type: ReDIF-Article 1.0 Author-Name: Esha Jain Author-X-Name-First: Esha Author-X-Name-Last: Jain Title: Technical analysis and National Stock Exchange of India: testing the RSI rule using CNX Nifty index Abstract: Technical analysis is just a strategy for seeing if it worth purchasing or offering a stock. This review can be made on the premise of information that is produced through the activities of the general population in the market. Technical analysis attempts to quantify the aggregate mind of the speculators which is led by covetousness and dread. The essential starting point under which specialised investigation works is the investigation of interest and supply, past costs and volume in the market and the heading of the value incline thereof later on. This study is significant for investors and traders as it leads to identify the level of price movement that further helps in understanding buying and selling situations in the market by identifying support and resistance levels. The results of the study show that the RSI test is reliable for any investor while trading in stock market. Journal: Afro-Asian J. of Finance and Accounting Pages: 406-419 Issue: 4 Volume: 9 Year: 2019 Keywords: CNX Nifty index; relative strength index; stock market; technical analysis; India. File-URL: http://www.inderscience.com/link.php?id=102991 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:9:y:2019:i:4:p:406-419 Template-Type: ReDIF-Article 1.0 Author-Name: Mohammed Amidu Author-X-Name-First: Mohammed Author-X-Name-Last: Amidu Author-Name: William Coffie Author-X-Name-First: William Author-X-Name-Last: Coffie Author-Name: Aisha Mohammed Sissy Author-X-Name-First: Aisha Mohammed Author-X-Name-Last: Sissy Title: The effects of market power on stability: do diversification and earnings strategy matter? Abstract: This paper examines whether the effect of the level of market power on bank soundness depends on the banks' decision to diversify and adopt a particular earnings strategy. We conduct the empirical approach in two stages. First, we estimate the Boone indicator, which is the measure for bank market power. We then regress this measure and other explanatory variables on the bank risk focusing on the role of earnings and diversification strategies. The results show that competition increases earnings management as the level of market power increases when banks diversify into non-interest income generating activities. The results also suggest that the relatively low insolvency risk among banks in Africa is attributed to the high degree of market power and the diversification strategy employed over the period. Journal: Afro-Asian J. of Finance and Accounting Pages: 381-405 Issue: 4 Volume: 9 Year: 2019 Keywords: banks; imperfect market; bank earnings; developing countries. File-URL: http://www.inderscience.com/link.php?id=102994 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:9:y:2019:i:4:p:381-405 Template-Type: ReDIF-Article 1.0 Author-Name: A. Shanthi Author-X-Name-First: A. Author-X-Name-Last: Shanthi Author-Name: R. Thamilselvan Author-X-Name-First: R. Author-X-Name-Last: Thamilselvan Title: Modelling and forecasting volatility for BSE and NSE stock index: linear vs. nonlinear approach Abstract: This article addresses the important issues related to stock market volatility by modelling and forecasting in the Sensitivity Index of Bombay Stock Exchange and Nifty 50 of National Stock Exchange in India by employing linear models and nonlinear models to show the usefulness of the model by attempting the sample forecast from 1 January 1996 to 31 December 2004, 1 January 2006 to 31 December 2014 and 1 January 1996 to 31 December 2014 as an in-sample forecast, by considering pre-period, post-period and full period. Apart from that, the out-of-sample forecast is also attempted in this study to draw a valid conclusion by using forecasting models. Overall, the study suggests that volatility is a part and parcel of the stock market, which is influenced by other key determining factors such as like inflow of foreign capital into the country, exchange rate, balance of payment and interest rate. Journal: Afro-Asian J. of Finance and Accounting Pages: 363-380 Issue: 4 Volume: 9 Year: 2019 Keywords: modelling; forecasting; volatility; emerging market; GARCH models; root mean square error; RMSE. File-URL: http://www.inderscience.com/link.php?id=102995 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:9:y:2019:i:4:p:363-380