...Return Volatility in Emerging Equity Market (Kse): The Relative Effects of Country and Global Factors Mohammad Faisal Rizwan* and Safi Ullah Khan** This paper focuses on the role of macroeconomic variables and global factors on the volatility of the stock returns in an emerging market like Pakistan. The paper uses two multivariate models, multivariate EGARCH and Vector Auto Regressive (VAR) models to investigate the effect of exchange rate, interest rate, industrial production, money supply, Morgan Stanley Capital International (MSCI) World Index and 6-months LIBOR on stock prices in Pakistan’s equity market. The estimate shows that domestic macroeconomic variables have varying degrees of importance in explaining the relationship between stock returns and volatility in Karachi Stock Exchange. The empirical results also show that the two global factors, MSCI World Index and 6-months LIBOR, variables used in this paper explain the stock returns in KSE. An important conclusion drawn from the results is that macroeconomic variables exhibit asymmetric effects on returns volatility. Overall, the results show that Pakistan’s stock market is partially integrated as shown by the significant role of both country and global factors. Field of Research: Finance 1. Introduction Studies on the link between macroeconomic variables and stock returns are broadly divided into two groups based on the level of market integration. The first strand promotes the view that markets are generally integrated...
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...can influence marketing plan. These will be evaluated with PESTEL analysis. Second, the company has to take insight on motorcycle industry of UK to examine competitiveness and long-term business prospects (Elliott, and Patton,1996). Porter’s Five Forces Model will analyze the industry. Finally, a SWOT analysis will be done to determine company’s suitability and vulnerability with UK market. So, the analytical framework will be as below. Figure 1: Framework for environmental Appraisal 1.1PESTEL Analysis The following factors will be considered as influential in PESTEL analysis. More factors will be included which management consider very important to take a strategic marketing decision. 1.1.1Economic Factors Economy of UK is rebounding after recession, which is again restoring consumers’ confidence for purchasing luxury product. Trading Economics (2013) stated The economy in second quarter of 2013 is growing .3% more than in 2012. The following chart will show the recovery of UK economy from fragile situation. Figure 1.2: GDP growth rate of UK Beyond economic parameter, the duty over foreign firm’s motorcycle export to UK is 6% where in addition to that VAT will be 20% on foreign motorcycle. Trading Economics (2013), depicts in the below graph the exchange rate of dollar is becoming stronger against British Pound. Figure 1.3: GBP against USD 1.1.2 Political Factors As a developed democratic country, UK has very stable political environment....
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...banking facilities to rural and semi-urban areas in the newly formed independent India but also to promote agricultural finance and help the government to pursue the board economic policies. Initially 60% stake in SBI was taken over by the Reserve Bank of India but the controlling interest has been transferred to the Government of India in 2008 to remove any conflict of interest as it is the country's banking regulatory authority. The State Bank Group, with a network of 18,266 branches including 4,724 branches of its five Associate Banks, dominates the banking industry in India. The market share of SBI in domestic advances was 16.40% and its five Associate Banks had a market share of 6.00% as on March 2011. The SBI's market share in deposits was 16.40% and its five Associate Banks had a market share of 5.88% as on March 2011.8(Please put reference in this section) So, the SBI group has a major market share among Indian commercial banks of covering more than 20% in deposits and loans....
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...Preface Let me begin this preface with a confession of a few of my own biases. First, I believe that theory and the models that flow from it should provide the tools to understand, analyze, and solve problems. The test of a model or theory then should not be based on its elegance but on its usefulness in problem solving. Second, there is little in corporate financial theory that is new and revolutionary. The core principles of corporate finance are common sense and have changed little over time. That should not be surprising. Corporate finance is only a few decades old, and people have been running businesses for thousands of years; it would be exceedingly presumptuous of us to believe that they were in the dark until corporate finance theorists came along and told them what to do. To be fair, it is true that corporate financial theory has made advances in taking commonsense principles and providing structure, but these advances have been primarily on the details. The story line in corporate finance has remained remarkably consistent over time. Talking about story lines allows me to set the first theme of this book. This book tells a story, which essentially summarizes the corporate finance view of the world. It classifies all decisions made by any business into three groups—decisions on where to invest the resources or funds that the business has raised, either internally or externally (the investment decision), decisions on where and how to raise funds to finance...
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...Macroeconomic variable |3.1 An overview of Banking sector and Stock market of Bangladesh | We are interested in investigating the relationship between stock prices and macroeconomic variables because individual investors can earn abnormal profits by exploiting this relationship and the existence of this utilizable opportunity would then dangerously distort the market’s ability to proficiently allocate scarce resources. In other word, the stock market will lose its informational efficiency. Informational efficiency is defined as at any given time, stock prices fully reflect all available information of the market. Thus, no investor has an advantage in predicting a return on a stock price because no one has access to information not already available to everyone else. Identifying the relationship or informational efficiency thus can be used to correct the current economic stabilization policies. Therefore, the issue of whether stock prices and macroeconomic variables are related or not have received considerable attention. This paper provides empirical evidence of the relationship between stock prices with each of the macroeconomic variables: exchange rate, inflation rate, money supply variables and so on. The knowledge of the prevailing relationship between stock prices one the one hand, and micro variables like market price/ earnings, growth rate in market capitalization, dividend yield and macro variables, like inflation...
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...Accessing The Application 05 Logging In 06 Bloomberg Panels 07 FUNCTIONS & SECURITIES 07 Running Functions 08 Working With Securities 10 NAVIGATION 10 Basic search (Autocomplete) 11 Full Search 12 Browsing Menus 13 PERFORMING ANALYSIS 13 Navigating Functions 14 Stock/Company Screening 15 Analyzing a Company 16 Analyzing an Index, Bond or Currency 17 EXPORTING DATA 17 The Bloomberg Excel Add-In 20 Drag & Drop 20 Printing & Other Export Options 20 GETTING HELP & LEARNING MORE 22 APPENDIX 22 Equity 22 Fundamental Analysis 23 Analytics 24 M&A Analysis 24 Fixed Income 26 Swaps 27 Money Markets 28 Structured Finance Analytics 29 Price Discovery 29 Analytics 29 Descriptive 30 Relative Value 30 Ticketing 30 Hedging 30 Additional Fixed-Income Functions 32 FI Futures & Options 33 Repo Analysis Data 33 CALCULATORS 33 High Yield/Syndicated Loans/ Distressed Research 34 Municipal Bonds INTRODUCTION For more than 20 years, Bloomberg has been committed to helping universities and colleges incorporate the Bloomberg Professional® service into their academic programs to better prepare students for the global job market. Universities and colleges around the globe use Bloomberg to bring the real world of finance into the classroom, providing students with access to the same information platform used by leading decision makers in business, finance and government. The Bloomberg Professional service and Bloomberg Terminal seamlessly integrate the very best in data, news...
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...Logging In 05 bloomberg Panels 06 FUNCTIONS & SECURITIES 06 Running Functions 07 Working with Securities 09 basic Search (autocomplete) 10 Full Search 11 browsing Menus 09 NavIGaTION 12 PERFORMING aNaLySIS 12 Navigating Functions 13 Stock/Company Screening 14 analyzing a Company 15 analyzing an Index, bond or Currency 16 ExPORTING DaTa 16 The bloomberg Excel add-In 19 Drag & Drop 19 Printing and Other Export Options 20 GETTING HELP aND LEaRNING MORE CONTENTS>>>>>>>>>> 21 aPPENDIx 21 Equity 21 Fundamental analysis 22 analytics 23 M&a analysis 23 Fixed Income 25 Swaps 26 Money Markets 27 Structured Finance analytics 28 Price Discovery 29 analytics 29 Descriptive 29 Relative value 29 Ticketing 29 Hedging 30 additional FI Functions 31 FI Futures and Options 32 Repo analysis Data 32 Calculators 33 High yield/Syndicated Loans/Distressed Research 34 Municipal bonds INTRODUCTION For more than 20 years, bloomberg has been committed to helping universities and colleges incorporate the bLOOMbERG PROFESSIONaL® service into their academic programs to better prepare students for the global job market. >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> Universities and colleges around the globe use Bloomberg to bring the real world of finance into the classroom, providing students with access to the same information platform used by leading decision makers in business, finance and government. The BLOOMBERG PROFESSIONAL® service and BLOOMBERG TERMINAL® seamlessly integrate...
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...ENVIRONMENT SCANNING LOVELY PROFESSIONAL UNIVERSITY LOVELY INSTITUTE OF MANAGEMENT (LIM) © ARUN GULERIA | arun_guleria@ymail.com INDEX S.N o. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Introduction. Acknowledgement Introduction Method of Environment Scanning Environmental Scanning Cycle Particular PAGE NO. 2 3 4 6 8 9 10 14 20 23 REMAR KS Structure of Environment Scanning Importance of environment Scanning How companies Handling Environment Scanning Literature Review Factor Affecting Environment Scanning © ARUN GULERIA | arun_guleria@ymail.com ACKNOWLEDGEMENT I take this opportunity to offer my deep gratitude to all those who have extended their valued support and advice to complete this term paper. I cannot in full measure, reciprocate the kindness showed and contribution made by various persons in this endeavor. I acknowledge my sincere thanks to Miss. NAVNEET KAUR (Faculty Member) who stood by me as a pillar of strength throughout the course of work and under whose mature guidance the term paper arrives out successfully. I am grateful to his valuable suggestions. © ARUN GULERIA | arun_guleria@ymail.com ENVIRONMENTAL SCANNING Environmental scanning is a process of gathering, analyzing, and dispensing information for tactical or strategic purposes. The environmental scanning process entails obtaining both factual and subjective information on the business environments in which a company is operating or considering entering. Environmental scanning is the...
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...Cambridge MA 02142, USA reviewed by: C. Peter Timmer - Cabot Professor of Development Studies emeritus. Harvard University Jeffrey C. Fuhrer - Executive Vice President and Senior Policy Advisor. Federal Reserve Bank of Boston Richard N. Cooper - Maurits C. Boas Professor of International Economics. Harvard University Thomas C. Schelling - Distinguished Professor of Economics emeritus. University of Maryland (Dated: September 21, 2011) Abstract Recent increases in basic food prices are severely impacting vulnerable populations worldwide. Proposed causes such as shortages of grain due to adverse weather, increasing meat consumption in China and India, conversion of corn to ethanol in the US, and investor speculation on commodity markets lead to widely differing implications for policy. A lack of clarity about which factors are responsible reinforces policy inaction. Here, for the first time, we construct a dynamic model that quantitatively agrees with food prices. The results show that the dominant causes of price increases are investor speculation and ethanol conversion. Models that just treat supply and demand are not consistent with the actual price dynamics. The two sharp peaks in 2007/2008 and 2010/2011 are specifically due to investor speculation, while an underlying upward trend is due to increasing demand from ethanol conversion. The model includes investor trend following as well as shifting between commodities, equities and bonds to take advantage of increased...
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...Do Hedge Funds Have Enough Capital? A Value-at-Risk Approach * Anurag Gupta† Bing Liang‡ April 2004 ____________________________________ *We thank Stephen Brown, Sanjiv Das, Will Goetzmann, David Hseih, Kasturi Rangan, Peter Ritchken, Bill Sharpe, Ajai Singh, Jack Treynor, and two anonymous referees for comments and suggestions on earlier drafts, and the seminar participants at Case Western Reserve University, University of Massachusetts at Amherst, Virginia Tech., the 2003 European Finance Association Meetings in Glasgow, the 2003 Western Finance Association Meetings in Los Cabos, the 2003 QGroup fall seminar in Scottsdale, the 2001 FMA European Meetings in Paris, and the 2001 FMA meetings in Toronto. Bing Liang acknowledges a summer research grant from the Weatherhead School of Management, Case Western Reserve University. We also thank TASS Management Limited for providing the data. We remain responsible for all errors. †Department of Banking and Finance, Weatherhead School of Management, Case Western Reserve University, Cleveland, OH 44106. Phone: (216) 368-2938, Fax: (216) 368-6249, E-mail: anurag.gupta@case.edu. ‡Department of Finance and Operations Management, Isenberg School of Management, University of Massachusetts, Amherst, MA 01003. Phone: (413) 545-3180, Fax: (413) 545-3858, E-mail: bliang@som.umass.edu. Do Hedge Funds Have Enough Capital? A Value-at-Risk Approach Abstract We examine the risk characteristics and capital adequacy of hedge funds through...
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...Foreign Direct Assessment: Analyzing the Mobility of FDI Models in Emerging Markets Kyle Himmelwright & Damian Zaccaria, Villanova Business School In this article, the authors will explore foreign direct investment in emerging markets. Applying a two prong investment model, they’ll assess three emerging Southeast Asian marketplaces; Indonesia, Thailand, and Malaysia. Additionally, they’ll explore the impact a variety of explicit and implicit factors have on the outcome. The research will indicate which of the three markets has the most potential for investment. Keywords: Foreign Direct Investment (FDI), emerging markets, investment, economic factors, growth, defense Foreign direct investment (FDI) plays a prominent and growing role in the global marketplace. FDI is defined as an investment made by a company or entity based in another country. The investment provides the firm with an opportunity to access new markets and marketing channels, cheaper production facilities, access to new technology, products, skills and financing (Goingglobal.com 2015). Accurately assessing marketplace factors is essential when evaluating whether to invest in a foreign market, especially when it comes to making decisions requiring foresight and conviction. “The world is changing very fast. Big will not beat small anymore. It will be the fast beating the slow.” Rupert Murdoch’s quote concisely illustrates the current state of the global marketplace; it simply isn't as big as...
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...assessing the distress of industrial corporations. These are the so-called Z-Score model (1968) and ZETA® 1977) credit risk model. Both models are still being used by practitioners throughout the world. The latter is a proprietary model for subscribers to ZETA Services, Inc. (Hoboken, NJ). The purpose of this summary are two-fold. First, those unique characteristics of business failures are examined in order to specify and quantify the variables which are effective indicators and predictors of corporate distress. By doing so, I hope to highlight the analytic as well as the practical value inherent in the use of financial ratios. Specifically, a set of financial and economic ratios will be analyzed in a corporate distress prediction context using a multiple discriminant statistical methodology. Through this exercise, I will explore not only the quantifiable characteristics of potential bankrupts but also the utility of a much-maligned technique of financial analysis: ratio analysis. Although the models that we will discuss were developed in the late 1960’s and mid-1970’s, I will extend our tests and findings to include application to firms not traded publicly, to non-manufacturing entities,...
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...world over be well and stay well through more than a century of change. As the science of human health and well-being has grown, they've been able to grow along with it. Even more important, we've helped shape and define what health and well-being means in everyday lives. Their products, services, ideas and giving now touch the lives of at least one billion people everyday. 1.2.Mission Nothing is more important than the health and well-being of those we love. That’s why the Johnson & Johnson Family of Companies for more than 125 years has committed itself to caring for people. This commitment is embodied in The Credo, which speaks to “our first responsibility” to the doctors, nurses, patients, the mothers and fathers and all who use our products. In today’s highly competitive global marketplace, it is also essential that the company focus on the critical drivers of our future growth: to create value through innovation, to extend our global reach, with local focus, to execute with excellence in everything we do and to inspire leadership with purpose among the people who carry on the Johnson & Johnson legacy. By caring, one person at a time, we aspire to help billions of people live longer, healthier, happier lives. There is no company better positioned to...
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...A STUDY OF FINANCIAL CRISIS AND ITS IMPACT ON STOCK MARKET A MANAGEMENT RESEARCH PROJECT SUBMITTED TO DHARMSINH DESAI UNIVERSITY FOR THE PARTIAL FULFILLMENT OF FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION (MBA) SUBMITTED BY CHARMI S. SHAH ROLL NO.: 42 UNDER THE GUIDANCE OF Dr. FALGUNI PANDYA ASSISTANT PROFESSOR (FINANCE) CENTRE FOR MANAGEMENT STUDIES DHARMSINH DESAI UNIVERSITY NADIAD 2014 DECLARATION I hereby declare that the project titled “FINANCIAL CRISIS AND ITS IMPACT ON THE STOCK MARKET” is my own work and I have not copied it from somewhere else. The project report is prepared just as a part of partial fulfillment of MBA programme and no other use of this project will be done. MANAGEMENT RESEARCH PROJECT is a part of syllabus in MBA programme of CMS – DDU , Nadiad, Gujarat. Name : Charmi S. Shah Signature : Date : 21st February, 2014 CENTRE FOR MANAGEMENT STUDIES DHARMSINH DESAI UNIVERSITY CERTIFICATE This is to certify that the Management Research Project has been Carried Out under the theme “FINANCIAL CRISIS AND ITS IMPACT ON STOCK MARKET”. This report is the bonafide work of Ms. Charmi Shah Roll Number 1542 of MBA Semester IV during the academic year 2012-14. Faculty Guide: Prof. Falguni Pandya Date: 21/02/2014 Head of Department: Dr. Naresh Patel Date:21/02/2014 Preface Practical knowledge by way of research is a step to bride up the gap between the theoretical studies of finance and its practicality in the world. Hence D...
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...of capital market in Bangladesh mainly started with the beginning of trading activities of Dhaka Stock Exchange. It first incorporated as East Pakistan Stock Exchange Association Ltd in 28 April 1954 and started formal trading in 1956. It was renamed as East Pakistan Stock Exchange Ltd in 23 June 1962. Again in 13 May 1964 it was renamed as Dacca Stock Exchange Ltd. After the liberation war in 1971 the trading was discontinued for five years. In 1976 trading restarted in Bangladesh. In 16 September 1986 was started. The formula for calculating DSE all share price index was changed according to IFC in 1 November 1993. The automated trading was initiated in 10 August 1998. In 1 January 2001 was started. Central Depository System was initiated in 24 January 2004. As of November 16, 2009, the benchmark index of the Dhaka Stock Exchange (DSE) crossed 4000 points for the first time, because of the debut of Grameen Phone in DSE. From the year 2007 the market capitalization is growing at a constant pace. The market is growing both in capitalization and trading volume. The growth is fueled by increased demand for financial assets and influx of liquid money. The growth is outpacing the growth of the national economy. Sudden rise of capitalization in DSE has raised the question, whether the growth has been healthy and market is functioning in a justifiable manner. [pic] Because economic development of a country is deeply related the development of country. If the market grows and...
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