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Copyright of Contemporary Accounting Research is the property of Canadian Academic Accounting Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Africa appears to be an appealing investment destination, with African stock markets offering foreign investors the gateway to tap into the continent's potential growth opportunities. Despite the significant growth and development of stock markets on the continent in recent decades, however, there remain some obstacles to overcome. This paper aims to examine the challenges faced by African stock markets which diminish their appeal to foreign investors and assess regional integration as a potential solution. Key takeaways: (1) African stock markets are often inadequately regulated and exhibit limited size, depth and liquidity, compounded by high currency volatility, prohibitive trading costs and macroeconomic and political instability, making them less attractive to foreign investors; (2) policy makers and regulators in developing countries should focus on fostering the development of vibrant and liquid public equity markets that are well regulated by creating a favourable market ecosystem through legislation, tax incentives and other measures to encourage listings; (3) for financial markets to operate effectively, they must exist within a comprehensive supportive framework encompassing legal, economic and political elements and coordinated monetary policies, potentially through currency zones; (4) the regional integration of stock exchanges can facilitate global integration, and some progress has been made in this regard. African stock markets remain weakly integrated, however, and economic integration initiatives are still hampered by low intra-African trade and inadequate infrastructure; (5) while the African Continental Free Trade Area (AfCFTA) lays a solid foundation for economic integration, African countries should allocate additional resources to implement the AfCFTA and ensure increased intra-Africa trade to assist in making its stock markets more attractive to foreign investors and potentially launching a continental exchange in the future. [ABSTRACT FROM AUTHOR]

Securitisation has allowed banks to move from an originate-to-hold to an originate-to-distribute model. While it is widely accepted that this helped banks to achieve higher profitability and diversification, it is also regarded as the main cause of the 2007–08 global financial crisis. The lack of transparency between the securities issued and the performance of the underlying loans led to extreme risk taking and amplified the impacts once the loans started to underperform. This paper explores asset tokenisation, which can bring similar benefits to securitisation while enabling more effective management of the risks due to the traceability and immutability of distributed ledger technology (DLT). The paper argues that tokenisation of assets has now progressed beyond the experimentation phase and is being adopted by major commercial banks, central banks and financial market infrastructures (FMI). In addition, it describes the regulatory tailwinds for market participants to get involved in deploying and using the technology that makes tokenisation possible. While tokens and securities are both claims on assets, tokenisation's additional capabilities of traceability and programmability enable the terms of a claim to be modified programmatically under specific circumstances, for example through a smart contract. A further positive attribute of tokenisation is that it can significantly improve and compress the workflow of existing and new securities, bringing considerable benefits from both operational and cost perspectives. The paper goes on to argue that generalised adoption of DLT along with harmonised standards, interoperability and integration for tokenisation feature among key requirements on which market participants and technology providers are actively working. Finally, the paper makes the point that cryptographically proven data also acts as a stepping-stone for high-quality artificial intelligence (AI) implementations, which can continue to expand productivity and profitability for regulated financial institutions. [ABSTRACT FROM AUTHOR]

This study attempts to evaluate the role of various industry-and firm-specific characteristics in determining profitability at the firm level in the Indian pharmaceutical industry. The study has utilized a balanced panel dataset of 72 listed pharmaceutical firms for the period from 1995-1996 to 2019-2020 and employed difference-GMM technique. Empirical results confirm that lagged profitability, market share, export intensity, productivity, and operating efficiency exercise a significant positive influence on firm profitability, whereas industrial concentration, imports of raw material intensity, advertising and marketing intensity, as well as leverage ratio exercise a significant negative impact. The analysis reveals that profitability in the pharmaceutical industry is driven primarily by firm-specific factors and that past profitability and market share together account for most of the variances in firm profitability. Other firm characteristics like export intensity, operating efficiency, productivity and leverage are also significant, but to a lesser extent. [ABSTRACT FROM AUTHOR]

The authors examine the role of stock liquidity in CEO equity compensation design. For a sample of publicly traded firms from 2007 to 2020, the authors find that greater stock liquidity is associated with a higher proportion of stock awards relative to the proportion of options in CEO equity compensation. The results of this study suggest that stock price informativeness on the grant date has a differential effect on the preference for the type of equity compensation awarded to CEOs. The empirical results are supported by multivariate analyses using alternative measures of stock liquidity and a two-stage least squares (2SLS) specification that alleviates endogeneity concerns. Furthermore, the authors document that the firm-specific increase in the proportion of stock awards compared to the proportion of stock options is associated with a firm-specific increase in stock liquidity. Collectively, the analyses suggest that stock liquidity as a measure of stock price informativeness contributes to the choice of CEO equity compensation design. [ABSTRACT FROM AUTHOR]

We study the used car market to understand how public enforcement that intends to increase information reliability affects disclosure, pricing, and liquidity. In 1986, federal rules mandated the creation of odometer records, and states enforced the law in a staggered fashion. We find that used car asking-price sensitivity to mileage increases by 32.6%, and mileage disclosure in classified ads increases by 23.4%. The findings suggest that strengthened law enforcement increases odometer credibility and enhances market participants' use of that information. We also show significant improvement in market outcomes: a 9.7% increase in asking price and a 13.4% increase in transaction speed, as reflected in the reduction in repeated ads. The price effect arises irrespective of whether ads contain mileage disclosure, whereas the liquidity effect arises mainly through disclosure. Our study shows public enforcement can benefit the market by improving information credibility. This paper was accepted by Suraj Srinivasan, accounting. Funding: The authors are grateful for financial support from the Olin Business School, Washington University in St. Louis. Supplemental Material: The data and online appendix are available at https://doi.org/10.1287/mnsc.2021.03758 [ABSTRACT FROM AUTHOR]

Market freezes are an interesting and theoretically challenging phenomenon —they are observed empirically, but cannot occur in standard models. This paper develops a formal theory of recurrent freezes emphasizing liquidity and self‐fulfilling prophecies. While it is well understood how to get hot and cold spells, where prices and quantities fluctuate, we get asset market freezes and thaws where trade completely stops and starts. The simplest specification gets this using negative asset returns. Other specifications use information frictions or fixed costs. We also consider credit freezes, analyze the extent to which the decentralized nature of trade matters, and discuss policy implications. [ABSTRACT FROM AUTHOR]

Activist investors in a firm often voluntarily release information about their governance intentions to the public. Voluntary disclosure theory suggests that an activist investor will disclose when she expects other investors to respond positively and support her in upcoming corporate control contests. We find that activists' disclosures are accompanied by positive abnormal returns, reductions in bid-ask spreads, and increases in future earnings relative to similar targets without voluntary activist disclosures. Disclosures by activists who demand a board seat (the most common demand) have the highest announcement returns, and disclosers also win proxy contests and directorships more frequently than non-disclosers. These findings suggest that the activist's beliefs about investor response in both pricing and voting are an important driver of her disclosure choice. [ABSTRACT FROM AUTHOR]

We identify the population shares of poor hand-to-mouth households, wealthy hand-to-mouth households and non hand-to-mouth households in Belgium. We apply the methodology proposed by Kaplan & Violante (2014) and Kaplan et al., (2014) to the Belgian component of the Household Finance and Consumption Survey. We find that the fraction of hand-to-mouth households in Belgium is substantial and predominantly consists of wealthy hand-to-mouth households. We also compare the observable characteristics and marginal propensities to consume (MPCs) of the three household types. Belgian wealthy hand-to-mouth households have characteristics that resemble those of the non hand-to-mouth households, while their MPCs are often more similar to those of the poor hand-to-mouth households. This pleads for giving a unique place to each type of household when evaluating the effects of fiscal policy. [ABSTRACT FROM AUTHOR]

We study the capital market effects of information centralization by exploiting the staggered implementation of digital storage and access platforms for regulated financial information (Officially Appointed Mechanisms, or OAMs) in the European Union. We find that the implementation of OAMs results in significant improvements in capital market liquidity, consistent with the notion that OAMs lower investors' processing costs. The findings are more pronounced when processing costs are high to begin with, that is, when firms (1) are small and receive low business press coverage and (2) have high levels of retail ownership. We then identify a mechanism through which centralization facilitates capital market effects: information spillovers. First, we find that liquidity improvements are larger when OAMs have features that easily allow investors to search for peer firm information. Second, liquidity improvements are larger for firms with a high share of industry peers operating on the same OAM and for firms with a high share of small, low‐coverage peers on that OAM. Third, around the annual report release dates of peer firms, focal‐firm liquidity improves and focal‐peer stock return synchronicity increases. Overall, our evidence suggests that, even in a modern information age, information centralization improves capital market liquidity and facilitates the acquisition and use of peer firm information. [ABSTRACT FROM AUTHOR]

In the article at hand neural networks are used to model liquidity in financial markets, under conic finance settings, in two different contexts. That is, on the one hand this paper illustrates how the use of neural networks within a two-price economy allows to obtain accurate pricing and Greeks of financial derivatives, enhancing computational performances compared to classical approaches such as (conic) Monte Carlo. The methodology proposed for this purpose is agnostic of the underlying valuation model, and it easily adapts to all models suitable for pricing in conic financial markets. On the other hand, this article also investigates the possibility of valuing contingent claims under conic assumptions, using local stochastic volatility models, where the local volatility is approximated by means of a (combination of) neural network(s). Moreover, we also show how it is possible to generate hybrid families of distortion functions to better fit the implied liquidity of the market, as well as we introduce a conic version of the SABR model, based on the Wang transform, that still allows for analytical bid and ask pricing formulae. [ABSTRACT FROM AUTHOR]

Copyright of Environmental & Social Management Journal / Revista de Gestão Social e Ambiental is the property of Environmental & Social Management Journal and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This paper aims to investigate the impact of influential ESG factors on risk, focusing on debt risk and liquidity risk. The influence on a sample of companies listed on the New York Stock Exchange belonging to the NYSE index is analyzed over a 10-year period, 2012–2021. The quantitative framework covers a multitude of indicators regarding debt, liquidity, corporate governance, the environment, CEO characteristics, performance, and other variables, and the research methodology uses the method of least squares to highlight their impact, using regression models with fixed and random effects, both linear and nonlinear. By estimating regression models, the empirical results confirm the hypotheses found in the existing knowledge stage that debt risk and liquidity risk are significantly influenced by asset profitability, the CEO duality significantly influences debt, while CEO gender diversity has a negative influence on corporate risk, specifically debt and liquidity risk. Additionally, it is shown that the emergence of COVID-19 brings significant changes to company autonomy and their financial performance, the COVID-19 pandemic has negatively influenced corporate risk through restrictions, economic uncertainty, and the amplification of risks. These research results are crucial for practitioners by the necessity of integrating ESG criteria into the risk assessment process and decision-making. Furthermore, concerning policy decision-makers, they help promote sustainability and a responsible approach. Therefore, ESG factors can impact companies' financial performance and influence how they are perceived by investors. By understanding and correctly evaluating these ESG factors, one can identify and manage risks more efficiently, achieve better long-term returns, make appropriate decisions, and promote sustainability in the business environment. [ABSTRACT FROM AUTHOR]

This study examines Lebanon's enduring financial and economic crisis, exacerbated by economic challenges, the COVID-19 pandemic, and the Port of Beirut explosion. With over 80 % currency devaluation due to sovereign debt default, the crisis has intensified poverty and unemployment, compounded by political turmoil. Using survey data from 178 stakeholders, experts, and academics, this research explores the intricate drivers of Lebanon's crisis and offers insights for policymakers. Employing quantitative methods, it uncovers the intertwined role of financial mismanagement, government failures, mounting public debt, financial engineering techniques, and political instability in driving the crisis. Recommendations emphasize prudent financial practices, sound governance, and policy interventions. This study sheds light on Lebanon's complex financial and economic challenges with data-backed perspectives from diverse stakeholders, providing valuable insights for management practitioners and scholars navigating crises in tumultuous environments. It aims to contribute to the management discourse, equipping stakeholders with actionable strategies for addressing and preventing similar crises. It also explores the interplay between stakeholder perspectives and the determinants of the financial crisis in Lebanon. It delves into the interconnected nature of the crisis and demonstrates how stakeholders from various sectors and backgrounds mirror the factors identified in the literature. [ABSTRACT FROM AUTHOR]

This paper investigates the relationship between a country's political governance and financial market dynamics, with a specific focus on non-U.S. stocks listed on the NYSE. Utilizing an ordinary least squares (OLS) regression model with heteroscedasticity-robust (Huber–White) estimators, we analyze the impact of political governance on stock liquidity and information asymmetry. Our analysis shows that stocks from democracies demonstrate improved liquidity and decreased information asymmetry, contrasting with stocks from autocracies that exhibit the opposite trend. Furthermore, shifts in political regimes dynamically impact stock liquidity and information transparency. These findings offer essential insights for investors, policymakers, and regulators, contributing to informed decision making and the formulation of policies that promote market health and transparency. Additionally, these findings underscore the importance of promoting political stability and transparent governance to foster healthy and efficient financial markets. [ABSTRACT FROM AUTHOR]

This study examines how board gender diversity affects listed non-financial European companies' financial performance. Data from the Refinitiv Eikon Platform—LSEG and World Bank databases was used to complete the analysis. The total sample included 4257 companies for the period 2011–2023. This study examined board gender diversity and its interaction with liquidity while controlling for board characteristics such as board size, independence, and board meetings. Controlling for firm characteristics (firm size and leverage) and macroeconomic variables like inflation and GDP. This study estimated the connection using panel regression. Due to Hausman test significance, fixed effect estimation was used. The findings demonstrated a notable and favorable influence of board features, such as gender diversity, board independence, and board size, on European nonfinancial companies. Additionally, liquidity positively affects firm performance. Furthermore, the findings indicated that leverage had a significant negative impact on profitability. Finally, both the size and GDP have a significant beneficial impact on profitability. Our findings indicate that an increased representation of women on the board of directors is associated with greater independence among board members and a higher number of board members being hired. This, in turn, has a positive impact on profitability due to the extensive experience shared among board members. Additionally, this leads to improved governance, enabling better control over decisions and a greater focus on the long-term investment strategy of the company. Our results are robust, as are similar results reported by the GMM regression. [ABSTRACT FROM AUTHOR]

This study analyses the variables that influence investment in a sample of small, labour-intensive companies in a sector that is highly dependent on external demand and the world economy. The aim is to test the three traditional theories of investment (neoclassical theory, free cash flow theory and agency theory), as well as consider the existence of other variables endogenous and exogenous to the company, in order to obtain a model that is appropriate to the reality of the companies in the sample, which consists of 3859 companies in the Portuguese textile sector, for the period from 2010 to 2022. Although there are many studies on the subject, the sample of companies used is different from the others, presenting a unique perspective for understanding investment dynamics in this type of company. The methodology used involves estimating panel data models using the GMM method. The results show that there is a statistically significant and negative relationship between liquidity and asset turnover and investment, so the free cash flow and neoclassical theories, respectively, are partially verified. The agency theory is not confirmed. Other variables are significant in explaining investment: the debt structure is statistically negative, while the size of the company, the GDP and the interest rate are statistically positive. Return on assets proved not to be statistically significant in explaining investment. To summarise, the study highlights the need for financial strategies adapted to the unique characteristics of small businesses. [ABSTRACT FROM AUTHOR]

In recent years, due to the existence of severe sanctions and obstacles governing the sale of oil, it has led to an increase in the exchange rate, and on the other hand, the decrease in foreign exchange resources has led to a decrease in the government’s income, and the limitation of the income due to the financial policies of the government has made it difficult to meet the expenses of the government does not give and as a result the budget deficit has caused many problems in the economic system of the government. The government’s budget deficit leads to borrowing from the central bank or banks, and ultimately to the growth of the monetary-liquidity base, inflation and a decrease in the value of the national currency against foreign currencies. In this article, the effects of optimal monetary policy on these variables are investigated and the existing research gap is closed. Based on this, the main goal of this research is to investigate the effect of optimal monetary policy on controlling inflation and exchange rate. The current research method is practical. The period of the current research was 1357 to 1398. To estimate the model, the self-regression econometric model with distributed interruptions or ARDL was used in Microfit 5 software space. With the increase in money supply and the lack of proportional and symmetrical increase in the production of goods, the tendency to import goods increases, and in this case, pressure is put on the current price of the exchange rate and the causes of its increase are provided. Optimal monetary policies have a positive and significant effect on controlling inflation and exchange rate. Optimal monetary policies have a positive and significant effect on controlling the exchange rate. As a result, according to the results of the model, the liquidity situation and income inequality have worsened during the period under review, and as a result, the monetary policy in the country was not effectiv [ABSTRACT FROM AUTHOR]

We investigate the empirical relation between country governance quality and stock market liquidity, as well as information asymmetry, using a sample of non-U.S. stocks from 17 emerging markets listed on the NYSE between 2004 and 2019. We find that non-U.S. stocks from emerging markets with higher democracy quality tend to have narrower spreads and larger depth, suggesting improved liquidity. Higher autocracy levels, on the other hand, are associated with wider spreads and lower depth, indicating poorer liquidity. Additionally, stronger democracy and polity qualities are linked to reduced price impact, while heightened autocracy levels are associated with increased price impact and a higher probability of informed trading. Moreover, we show that changes in our liquidity and information asymmetry measures significantly relate to changes in the country governance index over time. Our results remain remarkably robust across regions and when using different measures of liquidity and information-based trading. [ABSTRACT FROM AUTHOR]

Substantial transaction costs are incurred in exchange-traded fund (ETF) trading each year. This article examines a vector autoregressive (VAR) model's performance and other trading schedules to time trades in a large sample of 1350 ETFs over the 2011–2017 period. We reject the notion of a one-size-fits-all trading schedule that maximizes spread savings for all ETF traders. ETF traders who want to split their orders could save 7.40% of ETF spread costs, whereas trading at the market closing time would be optimal for ETF traders without motives to split trades. The spread savings for ETF traders are diverse across ETF sectors and depend on the spread volatility. JEL Classification: G11, G23 [ABSTRACT FROM AUTHOR]

We examine changes in market liquidity when several popular U.S. retail brokers restrict client trading in GameStop stock over a six-day period in early 2021 due to higher clearinghouse deposit requirements. When retail investor participation in a high-attentionstock becomes restricted, trading activity declines and trading venue shifts occur – there is less trading in dark markets and more fragmented trading across U.S. stock exchanges. We also find that when a stock order flow mix becomes comprised of fewer retail investors and a higher concentration of institutional investors, the quoted bid-ask spread widens, and trading cost measures rise significantly. [ABSTRACT FROM AUTHOR]

In modern times, economic security stands as one of the primary strategic objectives for any state. However, achieving economic security is unattainable without the stable operation of enterprises. Amidst a constantly evolving external environment, the economic security of enterprises becomes a prerequisite for their survival. To this end, evaluating the financial indicators of enterprises and identifying areas for improvement are imperative. The state of an enterprise’s financial indicators is traditionally regarded as the primary factor ensuring its economic security, as these indicators reflect the ultimate outcome of its operations. To analyze the financial indicators of an enterprise effectively, it is essential to establish evaluation criteria and parameters. The significance of accurately defining criteria for evaluating the financial indicators of a company primarily stems from the necessity to ensure its security and formulate and execute effective management decisions. Relevance of the topic. Today, enterprises operate amidst various uncertainties such as crises, pandemics, inflationary processes, and price fluctuations observed worldwide. In such conditions, enterprises are compelled to operate efficiently, compete for market influence and income, accurately assess and enhance financial indicators, and identify, analyze, and neutralize negative effects that may threaten economic security. Conversely, enterprises should promptly analyze their financial indicators to develop a set of measures aimed at bolstering their competitive positions and enhancing the efficiency of their operations. These aspects underscore the relevance of the article’s topic. The purpose of the article is to study financial indicators, their evaluation, determination of resources for increasing profit and profitability, and the impact of those indicators on the financial activity of enterprises and economic security. Evaluating the financial indicators of enterprises aims to determine the indicators for analyzing their current financial situation and identifying areas and actions required to enhance these indicators. Additionally, it involves exploring methods to influence the economic security system of enterprises through the improvement of financial indicators. Achieving these objectives necessitates accurate assessment, forecasting, and management decisions to enhance the financial situation of the enterprise. Research methods. The article was written using theoretical-methodical approaches, systematic approach, comparative analysis, factor analysis, graphic analysis and economic-statistical methods. Scientific innovation. It is justified that evaluating the financial condition of an enterprise and assessing its economic security complement and depend on each other, being inseparably linked. Economic security can only be fully ensured in conditions of continuous financial development. It has been established that when evaluating the financial condition of the enterprise, all its economic indicators should be monitored, enabling the enterprise to swiftly and effectively adapt to changing environmental conditions. Given these considerations, the importance of closely examining, enhancing, and bolstering the financial stability of an enterprise’s financial indicators in ensuring economic security has been justified. Additionally, the authors have proposed the primary directions for improving the financial indicators of an enterprise. [ABSTRACT FROM AUTHOR]

This research is to now the determinant of DER and the implication toward YTM and Economic growth in Banking Sector on The Indonesian Stock Exchange. The research sample is 22 Bond Series which are banking companies listed on the Indonesia Stock Exchange for the 2019-2023 period. Methods of data analysis using panel data regression method. The empirical results of the first model show that Profitability (ROA), Firm Size (SIZE), and Interest Rate (IR) have a positive effect on Capital Structure (DER), while the Exchange Rate (FOREX) has a negative effect. Liquidity (CR) has no effect on DER. All independent variables consisting of; ROA, CR, SIZE, FOREX and IR together significantly influence DER. The goodness-of-fit test as measured by the termination coefficient (R2) shows a coefficient of 0.937202, meaning that the variation in the ups and downs of the DER can be explained by ROA, CR, SIZE, FOREX, and IR of 93.72 percent, while the rest, namely 6.28 percent can be explained by other variables not examined in this research model. For the adjusted coefficient of determination (R2 adjusted) the coefficient is 0.9217. The second model shows that the DER and IR variables have a negative effect on Yield to Maturity (YTM), while the SIZE and FOREX variables have a positive effect. ROA and CR variables have no effect on YTM. All variables DER, ROA, CR, SIZE, IR and FOREX together affect YTM. For the goodness-of-fit test as measured by the termination coefficient (R2) shows a coefficient of 0.6750, which means that the variation in changes in the rise and fall of YTM can be explained by; DER, ROA, CR, SIZE, IR, and FOREX are 63.30 percent, while the remaining 36.70 percent can be explained by other variables outside this research model. [ABSTRACT FROM AUTHOR]

Profit quality is very important information related to the company's financial health. The research aims to assess and describe the effect of profit growth, liquidity and profitability on profit quality. Research includes quantitative research. Research materials using food and beverage manufacturing companies on the Indonesia Stock Exchange for the 2019-2021 period. The sample used 19 companies. Multiple linear regression is a technique used in data analysis. The results prove that profit growth and liquidity do not affect profit quality, while profitability affects profit quality. This research is used as a helper for entities and external parties in order to determine the quality of profit in an entity. [ABSTRACT FROM AUTHOR]

Earning management is an implementation carried out by the company's management to carry out actions to manipulate financial statements in order to achieve certain targets. This study was conducted with the aim to find the effect of profitability, liquidity, company size, and institutional ownership on earning management. The population of this study is an industrial sector company listed on the Indonesia Stock Exchange for the period 2019-2022. Sampling techniques using purposive sampling and obtained by 19 companies. Data analysis using multiple linear regression. The results showed that profitability measured using Return on Assets has no effect on earning management, Net Profit Margin has an effect on earning management, Return on Equity has an effect on earning management. Liquidity as measured by The Current Ratio, Quick Ratio, and Cash Ratio does not affect earning management. The size of the company is measured by the natural logarithm of total assets resulting in the size of the company has an affects earning management. Institutional ownership is measured by the division between the ownership of the number of shares of the institution and the number of shares outstanding, resulting in that institutional ownership has no effect on earning management. High and low return on assets, liquidity, and institutional ownership have no effect on earning management. But the higher the value of net profit margin, return on equity, and company size in a company, the lower the value of earning management. Conversely, the lower the value of net profit margin, return on equity, and company size, the value of earning management value increases. [ABSTRACT FROM AUTHOR]

Copyright of Jurnal Ekonomi Manajemen Sistem Informasi (JEMSI) is the property of Dinasti Publisher and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Since the S&P 100 Index underlies both American (OEX) and European (XEO) options, the value of the early exercise premium of American options can be directly observed. We find that the mid‐quote of an XEO option can be higher than that of an otherwise identical OEX option, and liquidity can explain this overpricing phenomenon of European options. Our results show that illiquid options are significantly overpriced in the S&P 100 Index options market. This finding indicates that an illiquid option can be overvalued with a higher market offer price, which is the requirement of market makers for compensation for providing liquidity. [ABSTRACT FROM AUTHOR]

Against the backdrop of COVID-19, we study how the interactions of mutual funds and dealers introduce fragility to the municipal bond market and induce lasting market impacts. During the crisis, trading surges, whereas dealers' liquidity provision plunges for mutual-fund-held bonds, leading to greater price depressions in these bonds. Importantly, the crisis reshapes the market's perceptions of mutual fund fragility risks, with the aftermath-yield spreads widening significantly more for bonds with greater mutual fund exposures. Such postcrisis pricing effects reflect dealers' continued reluctance to provide liquidity for mutual fund–held bonds, and they are stronger for bonds whose mutual fund holders are more susceptible to investor runs. This paper was accepted by Victoria Ivashina, finance. Supplemental Material: The data files are available at https://doi.org/10.1287/mnsc.2023.4912. [ABSTRACT FROM AUTHOR]

This research aims to find out how sharia reporting is disclosed by sharia commercial banking using variable indicators such as liquidity, leverage, size of the sharia supervisory board, awards, and company size. This research was conducted on sharia banks registered with the Financial Services Authority (OJK) Indonesia from 2017 to 2022. The method used in data collection was a purposive sampling method and a sample of 14 sharia banks registered with the Financial Services Authority (OJK) was obtained. The results show that the variables liquidity, rewards and company size have a positive and significant impact on the disclosure of Islamic Social Reporting, while the variables leverage and size of the sharia supervisory board have no effect on Islamic Social Reporting disclosure. The research concludes that to increase the impact of Islamic Social Reporting, companies need to increase current assets to maintain liquidity, obtain awards, and increase total assets as a company size. Therefore, disclosing Islamic Social Reporting at each institution is very important to attract public attention regarding the company's excellence and performance, and this disclosure can be beneficial for the company's future. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this research is to examine the relationship between ownership concentration and firm leverage. This study extends beyond linear analysis and explores the non-linear relationship between ownership concentration and firm leverage. Data and Methodology: This study utilizes data from non-financial companies listed on the Stock Exchange of Thailand for the years 2016 to 2017. Regression analysis is employed to investigate the relationship between ownership concentration and firm leverage. Additionally, the study explores the non-linear relationship between ownership concentration and firm leverage. It is important to note that the relationship between ownership concentration and firm leverage is influenced by various other factors, including independent directors, profitability, liquidity, firm size, and firm age. These factors are included in the study as control variables. Findings: The results indicate that ownership concentration is associated with a reduction in firm leverage, although this impact is not statistically significant. Furthermore, the study reveals a significant negative relationship between firm profitability, and liquidity with firm leverage. However, independent directors, firm age is found to have a negative and insignificant association with firm leverage. In contrast, firm size exhibits a positive and significant correlation with firm leverage. The non-linear relationship between ownership concentration and leverage is not found to be significant. [ABSTRACT FROM AUTHOR]

This paper generalizes the concept of capacity from the portfolio level to the investment process for systematic equity strategies. Capacity is often understood as the maximum asset under management, above which additional inflows would have too great a negative impact on performance. The concept of capacity is often limited to the study of a given portfolio. However, setting up a capacity management framework must consider what the portfolio might look like in the future. This is obviously complicated for discretionary portfolios but theoretically conceivable for portfolios implementing systematic strategies, if we can simulate all possible scenarios. In our framework, we extend the traditional definition of capacity from a number to a random variable, allowing portfolio managers to integrate it into their risk considerations. We provide examples of how portfolio managers can approach this problem, with full-search or modelling methods. Our framework includes several capacity metrics that can be used jointly or selected to align better with the features of each strategy. [ABSTRACT FROM AUTHOR]

The results of the study of the Ukrainian market of faceted topaz are described. For this purpose, a special table of raw data on faceted topaz presented on Ukrainian Internet resources was compiled. The majority of topaz samples are characterized by moderate value indicators — up to 2,000 hryvnias per carat. On the graph of the distribution of logarithmic value indicators for faceted topazes, three areas are highlighted, which differ in the type of growth functions. It is shown that the construction of a mathematical model for forecasting the value of faceted topaz is expedient to be carried out within the second interval. A list of criteria for assessing the quality of topazes, as well as their ranking, is proposed. The projected specific indicators of the cost of faceted topazes in hryvnias per 1 carat are presented. A mathematical model is presented for forecasting the value of faceted topazes when solving the practical tasks of professional appraisers — assessing the economic feasibility of mining and processing these stones in Ukraine, as well as calculating their liquidity index. Four examples of determining the forecasted price for faceted topaz are considered, taking into account their liquidity indicator. [ABSTRACT FROM AUTHOR]

A developed and vibrant corporate bond market provides an important means of financial resources to corporate, in addition to bank financing. It brings transparency and prudence into financial system and helps in minimizing risks in financial system through diversification. The main objective of this study is to find out the various issues and hurdles faced by retail investors and come out with appropriate suggestions in this regard. A modest attempt has also been made to understand the present status of the Indian corporate bond market in reference to retail investors participation. The study reveals that, in spite of sincere efforts of policymakers, the participation of retail investors in Indian corporate bond market are negligible. It has also been observed that the important issues of retail investors are related to safety of principal, returns, liquidity and tax benefits. It is expected that the suggestions made in this paper, if implemented, will definitely helpful in attracting retail investors to Indian corporate bond market.

Purpose : This study aims to determine the financial performance of PT. Sentra Food Indonesia Tbk. Methodology : This type of research is qualitative research using secondary data in the form of financial statements (balance sheet and income statement) at the company PT. Sentra Food Indonesia Tbk for 2017-2021 which is listed on the IDX. The measuring instruments used are the Liquidity Ratio (current ratio and cash ratio) while the Profitability Ratio (ROE and ROA). Research Findings : The results of the Liquidity Ratio research measured using Current Ratio and Cash Ratio are said to be not good. Where the company's Current Ratio does not reach the industry standard of 200% because the average is 73.84. Meanwhile, the company's Cash Ratio is not in good condition because the Cash Ratio does not reach the industry standard of 50% because the average is 3.17 in 5 years, namely from 2017-2021. While the Profitability Ratio measured using Return On Equity and Return On Assets is said to be not good. This is because Return On Equity does not reach the industry standard of 40% because the average is 17.36. Meanwhile, Return On Assets is not in good condition because it does not reach the industry standard of 30% because the average is 6.66 in 5 years, namely from 2017-2021. Tujuan Penelitian : Penelitian ini bertujuan untuk mengetahui kinerja keuangan PT. Sentra Food Indonesia Tbk. Metodologi : Jenis penelitian ini merupakan penelitian kualitatif dengan menggunakan data sekunder berupa laporan keuangan (neraca dan laporan laba rugi) pada perusahaan PT. Sentra Food Indonesia Tbk tahun 2017-2021 yang terdafar di BEI. Alat ukur yang digunakan adalah Rasio Likuiditas (current ratio dan cash ratio) sedangkan Rasio Profitabilitas (ROE dan ROA). Temuan Penelitian : Hasil penelitian Rasio Likuiditas yang diukur dengan menggunakan Current Ratio dan Cash Ratio dikatakan tidak baik. Di mana Current Ratio perusahaan tidak mencapai standar industri yaitu 200% karena rata-ratanya sebesar 73,84. Sedangkan Cash Ratio perusahaan dalam keadaan tidak baik karena Cash Ratio tidak mencapai standar industri yaitu 50% karena rata-ratanya sebesar 3,17 dalam 5 tahun yaitu dari tahun 2017-2021. Sedangkan Rasio Profitabilitas yang diukur dengan menggunakan Return On Equity dan Return On Aset dikatakan tidak baik. Hal ini disebabkan karena Return On Equity tidak mencapai standar industri yaitu 40% karena rata-ratanya sebesar 17,36. Sedangkan Return On Aset dalam keadaan tidak baik karena tidak mencapai standar industri yaitu 30% karena rata-ratanya sebesar 6,66 dalam 5 tahun yaitu dari tahun 2017-2021.

Abstract This paper aims to investigate the impact of influential ESG factors on risk, focusing on debt risk and liquidity risk. The influence on a sample of companies listed on the New York Stock Exchange belonging to the NYSE index is analyzed over a 10-year period, 2012–2021. The quantitative framework covers a multitude of indicators regarding debt, liquidity, corporate governance, the environment, CEO characteristics, performance, and other variables, and the research methodology uses the method of least squares to highlight their impact, using regression models with fixed and random effects, both linear and nonlinear. By estimating regression models, the empirical results confirm the hypotheses found in the existing knowledge stage that debt risk and liquidity risk are significantly influenced by asset profitability, the CEO duality significantly influences debt, while CEO gender diversity has a negative influence on corporate risk, specifically debt and liquidity risk. Additionally, it is shown that the emergence of COVID-19 brings significant changes to company autonomy and their financial performance, the COVID-19 pandemic has negatively influenced corporate risk through restrictions, economic uncertainty, and the amplification of risks. These research results are crucial for practitioners by the necessity of integrating ESG criteria into the risk assessment process and decision-making. Furthermore, concerning policy decision-makers, they help promote sustainability and a responsible approach. Therefore, ESG factors can impact companies' financial performance and influence how they are perceived by investors. By understanding and correctly evaluating these ESG factors, one can identify and manage risks more efficiently, achieve better long-term returns, make appropriate decisions, and promote sustainability in the business environment.

One of the industries that is impacted by macroeconomic factors is the transportation sector. A corporation's high company value is undoubtedly reflected in its good performance. In addition, the company's size affects its managerial capabilities and ability to provide services. Using company size as a moderating variable, the research aims to ascertain and examine the impact of financial performance on company value. Descriptive statistics, multiple regression analysis, classical hypothesis testing, and moderate regression analysis (MRA) are the analytical techniques employed in this study. Nine businesses in the transportation sector were chosen for this study sample using the purposive sampling technique. Research data was taken from the 2018–2022 annual financial reports of transportation sector companies listed on the IDX. The research results show that financial performance as measured by profitability (ROA) and liquidity (CR) simultaneously has a positive effect on company value. Meanwhile, partially profitability (ROA) has a significant positive effect on company value. Liquidity (CR) has a significant negative effect on company value. Company size is able to moderate both partially and simultaneously the influence of profitability and liquidity on company value.

In modern times, economic security stands as one of the primary strategic objectives for any state. However, achieving economic security is unattainable without the stable operation of enterprises. Amidst a constantly evolving external environment, the economic security of enterprises becomes a prerequisite for their survival. To this end, evaluating the financial indicators of enterprises and identifying areas for improvement are imperative. The state of an enterprise’s financial indicators is traditionally regarded as the primary factor ensuring its economic security, as these indicators reflect the ultimate outcome of its operations. To analyze the financial indicators of an enterprise effectively, it is essential to establish evaluation criteria and parameters. The significance of accurately defining criteria for evaluating the financial indicators of a company primarily stems from the necessity to ensure its security and formulate and execute effective management decisions. Relevance of the topic. Today, enterprises operate amidst various uncertainties such as crises, pandemics, inflationary processes, and price fluctuations observed worldwide. In such conditions, enterprises are compelled to operate efficiently, compete for market influence and income, accurately assess and enhance financial indicators, and identify, analyze, and neutralize negative effects that may threaten economic security. Conversely, enterprises should promptly analyze their financial indicators to develop a set of measures aimed at bolstering their competitive positions and enhancing the efficiency of their operations. These aspects underscore the relevance of the article’s topic. The purpose of the article is to study financial indicators, their evaluation, determination of resources for increasing profit and profitability, and the impact of those indicators on the financial activity of enterprises and economic security. Evaluating the financial indicators of enterprises aims to determine the indicators for analyzing their current financial situation and identifying areas and actions required to enhance these indicators. Additionally, it involves exploring methods to influence the economic security system of enterprises through the improvement of financial indicators. Achieving these objectives necessitates accurate assessment, forecasting, and management decisions to enhance the financial situation of the enterprise. Research methods. The article was written using theoretical-methodical approaches, systematic approach, comparative analysis, factor analysis, graphic analysis and economic-statistical methods. Scientific innovation. It is justified that evaluating the financial condition of an enterprise and assessing its economic security complement and depend on each other, being inseparably linked. Economic security can only be fully ensured in conditions of continuous financial development. It has been established that when evaluating the financial condition of the enterprise, all its economic indicators should be monitored, enabling the enterprise to swiftly and effectively adapt to changing environmental conditions. Given these considerations, the importance of closely examining, enhancing, and bolstering the financial stability of an enterprise’s financial indicators in ensuring economic security has been justified. Additionally, the authors have proposed the primary directions for improving the financial indicators of an enterprise.