Stock prices move together more in low-income economies than high-income economies. This finding is clearly not due to market size differences, and only partially explained by slightly higher fundamentals correlation However, measures of a country?s institutionalized respect for property rights do appear explain these differences. We conjecture that weak private impede informed trading increase systematic noise trader risk. also that, countries protect public investors poorly from corporate...

In the past decade, online Peer-to-Peer (P2P) lending platforms have transformed industry, which has been historically dominated by commercial banks. Information technology breakthroughs such as big data-based financial technologies (Fintech) identified important disruptive driving forces for this paradigm shift. paper, we take an information economics perspective to investigate how data affects transformation of industry. By identifying signaling and search costs are reduced analytics...

The characterization of firm-specific return volatility as the intensity with which events occur reconciles many seemingly discordant results. A functionally efficient stock market allocates capital to its highest value uses, often amounts financing Schumpeterian creative destruction, wherein winner firms outpace destroyed losers, who could be previous year’s winners. This rise in fundamentals elevates a sufficiently informationally market. These linkages are interconnected feedback loops...

In this paper, we investigate the impact of accounting standards on information content stock prices using a sample 44 countries from around world. We find that adoption International Financial Reporting Standards or US Generally Accepted Accounting Principles per se does not make more informative, but better are helpful only in having effective legal environments. particular, significantly negative relationship between price synchronicity and quality with common-law origin generally...

Abstract This paper examines the effect of corporate governance on relationship between performance and market competition. We use changes in import tariffs as exogenous shocks to product competition examine how these varies with governance. find that elevated due tariff cuts results significant deterioration for firms strong governance, but little or even a positive poor further effects are much stronger nonexporting small because they do not have opportunity/resources soften impact...

We find a positive and significant relation between forecasted idiosyncratic volatility andreturns in large international database covering 57 countries with over three million firmmonthobservations from July 1995 to June 2016. Our empirical results reveal substantialcross-country variation the magnitude of risk premiums. Consistentwith classic asset pricing theory (e.g., Markowitz, 1959; Merton, 1987), we thatidiosyncratic premiums are positively associated investor impediments toportfolio...

This paper investigates the efficiency of stock index options traded over-the-counter (OTC) and on exchanges in Hong Kong Japan. Our findings suggest that implied volatility is superior to either historical or a GARCH-type forecast predicting future both OTC exchange markets. We also compare predictive power exchange-traded find evidence market more efficient than Japan, but opposite true Kong.

In this article, we investigate the effect of insider ownership on analyst forecast properties and find a significant nonlinear relationship between two. Specifically, in low to medium range, rise improves (making them more accurate less dispersed), but further beyond moderate levels leads deteriorating forecasts. We also that is attenuated for firms countries with better investor protection. interpret our findings as evidence role an interest alignment or entrenchment mechanism diminished...

B-shares listed in China are traded at substantial discounts to their corresponding A-shares although they have identical rights. We offer a governance explanation and suggest that relative domestic investors, foreign investors care more about firm’s quality. Results supportive, as the B-share price discount is higher for firms weaker characterized by ownership concentration, ineffective boards with proportion of directors appointed parent company, lower dividend payouts, levels...

In recent years, stock prices have risen and fallen sharply, so that investors cannot be expected to accurately determine when buy shares, thus greatly reducing the number of people participating in market. Based on some data description pictures, this paper draws conclusions. The Internet can help market further expand its influence create conditions for solving imbalance between supply demand China's structural finance. On other hand, new energy companies, resources such as international...

This paper investigates the impact of corporate spinoffs on executive compensation. We find no significant association between compensation and stock returns prior to spinoffs, but a positive two afterwards. also evidence that governance generally improves after spinoff. In addition, is more pronounced for firms with greater improvements in their governance. Overall, our findings support notion create value by reducing agency costs.