Risks of investing in the Russian stock market

Risks of investing in the Russian stock market

Journal of Comparative Economics31 (4) (2003) 715–731. This chapter surveys the salient concepts relating to the role and development of emerging securities markets.

Interim financial report

There is also a quadratic relationship between private benefits of control and board size, implying the optimality of medium-sized (about 9-10 directors) boards. We find no gender effects on private benefits http://khozrevanidze.ge/1-dogecoin/ of control. Many cross-country enterprise surveys have recently become widely available. They are the basis of rankings of dimensions of the business environment in emerging markets and developing economies.

Why stock investors split their orders? An analysis of strategic trading behaviors in the Korea Stoc…

We also find significant differences in the predictive power of different indices. How one measures governance matters. http://www.speedoswimcalendar.co.za/2019/10/01/dentacoin-dentakoin/ Schumpeter, J.A., 1911. A Theory of Economic Development. Harvard University Press, Cambridge, MA. Sokalska, 2001.

It considers both general securities markets activity as well as the operations of exchanges which facilitate securities trading. The section relating to general securities activity discusses the liberalisation of securities markets in recent years, the risks related to portfolio investment in emerging markets and the impacts of the gradual integration of these markets with global ones.

After controlling for a host of country-specific micro- and macro-economic variables, the results reveal that firms that have less access to sound money in domestic markets and firms from countries with large government sectors are more likely to issue a depositary receipt. These companies also realize a higher market value, measured by Tobin’s Q. In this paper, we examine the scope for in ternational stock portfolio diversification, from the viewpoint of a United States representative http://localpress.vibe.rs/canopy-growth-corporation/ investor, in regard to both the Asian and the European stock markets. Our findings indicate that despite correlation style evidence to the contrary, the European stock markets provide a superior long-term diversification opportunity relative to that provided by the Asian stock markets. Hence, a short-term measurement of interdependence appears to be uninformative with respect to the diversification opportunities of investors with longer term investment horizons.

The price of the currency risk has decreased since the implementation of the floating exchange rate regime by the Central Bank of Russia in 2014, but still significant. This thesis consists of five self-contained papers, which are all related to the financial markets in the three Baltic States, Estonia, Latvia and Lithuania. Paper [I] studies the impact of news from the Moscow and New York stock exchanges on the returns and volatilities of the Baltic States’ stock market indices using a time series model that accounts for asymmetries in the conditional mean and variance functions. We find that news from New York has stronger effects on returns in Tallinn. High-risk shocks in New York have a stronger impact on volatility in Tallinn, whereas volatility in Vilnius is more influenced by high-risk shocks from Moscow.

Risks of investing in the Russian stock market

• We examine the behavior of the Russian stock market as one of the leading indices of economic health, reflecting investors’ expectations about future returns.
• These results, which we document for 30 emerging markets, are robust to the addition of control variables.
• A ten-year retrospection of the behavior of Russian stock returns.

We extend Durand, Newby and Sanghani (2008) by demonstrating that investors’ reliance on two heuristics used to model market movements – the availability heuristic and the disposition effect – is associated with their personality traits. on the analysis of factors that were affecting the profitability of Russian companies and the applicability of the approach of «risk-return». They described factors such as corporate governance and market risk as highly influential. Taiwan is an important emerging economy which has adopted a progressive strategy to open up its securities markets, mainly through the QFII (Qualified Foreign Institutional Investor) scheme. This paper examines Taiwan’s QFII experience so as to determine whether the implementation of such a policy has helped reduce corporate investment-cash flow sensitivity.

Data was gathered through face-to-face interviews with 100 Saint-Petersburg firms randomly selected from the INFOWAVE data base. The results are consistent with the hypotheses.

Perceived as market value enhancing tool, stock splits have become increasingly popular on Polish capital market. In this paper we analyze the impact of splits on investor’s return and the risk profile of stocks listed on Warsaw Stock Exchange between 2000 and 2011.

found that major economic and political news events had impact on the stock prices of the Russian stock market, where political risk factors mattered the most until a certain level of corporate governance was reached. This article documents the importance of testing for structural change in the context of emerging markets.

We find that such efficiency is characteristic of the Czech Republic where several economic factors create contemporaneous changes in equity prices, but no lagged factors cause current-period changes in the stock market. In the other three Central European countries, Hungary, Poland, and Slovakia, markets do not appear to be efficient and lagged economic factors do affect equity prices. Finally, we show that the Czech equity market is closely integrated with the German market while movements in prices in Hungary and Poland more closely follow movements in the U.S. market. Overall, the results are consistent with the Czech market reflecting underlying fundamentals, while the other three markets exhibit speculative bubbles dominated by foreign capital.

Parameters of the expected return equation are assumed, however, to be time-varying and estimated under the state-space framework using the extended Kalman filter postulated by Chou, Engle, Kane (1992) to capture the GARCH effect in returns. QML http://www.maisontaxi.com.br/?p=4948 estimation is performed on intraday data; its utilization is proposed as an alternative to the continuous time modeling by Minenna (2003). This framework is generalized to the bivariate case which enables the analysis of daily open/close data.

The increased activity after the split does not translate into investor’s abnormal return. However, investors’ returns become less volatile which changes stock’s risk profile in analyzed period. We find abnormal returns in the period prior to stock split and the day after it.