...Is stock market performance linked to business performance? Abstract Still in the heart of an unprecedented financial crisis, new questions came up about the working of the stock market. In the eyes of general public the stock market can seem a lot like gambling to the extent that this one was reconsidered. The stock market index seems to be valuating at random, especially since the last financial crisis. But the fact that stock market plays an important role in the health of the economy turn impossible this though from general public, which leads us to ask the following question: how the stock market is influenced? We will adopt a general approach and focus on the probable influence of business performance on stock market performance. In order to do so, we collected information and date from Standard and Poor’s source and from specialized source. Executive summary The first modern stock market, today called the New York Stock Exchange (NYSE) was established in 1792 in New York City . The purpose of the stock market is to give the opportunity to companies to open themselves up to public investment in order to raise capital. The stock market is composed of a primary market and a secondary market. The primary market is where a company sells shares for the first time or issues new ones. In the secondary market investors trade securities or assets with other investors, the cash proceeds from transactions go to the investors instead of the company. At this point...
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... Vol. I No. 1 Dec. 2004 Growth and Performance of Securities Market in Nepal Jas Bahadur Gurung* ABSTRACT Securities Board, Nepal, an apex regulator and facilitator of capital market, and Nepal Stock Exchange Ltd., only a single stock market, are the main constituents of securities market in Nepal. This paper attempts to study the growth trend and analyze the performance of Nepalese securities market. Likewise, the variables such as number of listed and traded companies and their securities, number of transactions, trading turnovers, paid up value, market capitalization and NEPSE index are analyzed for the secondary market. SECURITIES MARKET IS A MECHANISM created to facilitate the exchange of financial securities or assets by bringing together buyers and sellers of securities (Sharpe 1998). Securities markets provide an effective way of procuring long-term funds by issuing shares and debentures or bonds for corporate enterprises and government and at the same time provide an investment opportunity for individuals and institutions (Adhikari 2004). Thus, the market place for these financial securities is called securities market which is further subdivided into the primary and secondary market. The former market denotes the market for newly issued securities to the public whereas the latter market refers to the market for secondhand securities, traded previously in the primary market (Francis, 1991). The securities market plays an important role in mobilizing savings...
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...Performance and Trading In Currency Markets Name Course Professor/ Tutor University City/State Date Table of Contents 1.0 Introduction 4 1.1 Proposal 4 1.2 Research Questions 5 2.0 Literature review 5 2.1 Traditional Portfolio Measures …………………………………………………………….6 a. Sharpe ratio: 6 b. Treynor ratio: 7 c. Jensen Alpha: 8 d. Fama-French Model 10 2.2 Assumption to Models ……………………………………………………………………11 2.3 Possible Results ……………………………………………………………………………11 2.4 Limitations of the traditional models ……………………………………………………12 3.0 Academic Review 14 3.1 Types of Analysis Applied in Currency Markets ……………………………………14 3.2 Empirical Literature Review ……………………………………………………………17 3.2.1 Hedging in the Currency Market ……………………………………………………19 4.0 Individual Currency Index Returns ……………………………………………………20 4.1.1 The Factors ……………………………………………………………………………21 a. Trend 21 b. Value 22 c. Volatility 22 4.2 Individual Currency Manager Returns ……………………………………………………23 5.0 Limitation to study ……………………………………………………………………25 6.0 Critique of Data source ……………………………………………………………………26 7.0 Results From Previous studies ……………………………………………………………29 8.0 Conclusion 30 References List 31 Performance and Trading In Currency Markets 1.0 Introduction The financial money market or the currency market is one of the markets that reports high trading volume. Most investors are keen in the trends of financial markets both from a local and an international perspective (Fanchiotti...
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...“The Performance Of Capital Market And Its Impact On The Economy Of Bangladesh.” (Based On Recent Unstable Capital Market Situation.) Assignment on # Macro-Economices (Course Code: FIN-2209) 14th February, 2011 ►Prepared by, Anik Ahmed BBA, 3rd Batch, Department Of Finance Jagannath University, Dhaka. Capital Market Overview A capital market is a market for securities (debt or equity), where business enterprises (companies) and governments can raise long-term funds. It is defined as a market in which money is provided for periods longer than a year. The capital market includes the stock market (equity securities) and the bond market (debt). Financial regulators, such as the Bangladesh Bank (BB), and Securities and Exchange Commission (SEC), oversee the capital markets in their designated jurisdictions to ensure that investors are protected against fraud, among other duties. Capital Market Primary Market Secondary Market In primary markets, new stock or bond issues are sold to investors via a mechanism known as underwriting. In secondary markets, existing securities are sold and bought among investors or traders, usually on a securities exchange, over-the-counter, or elsewhere. In Bangladesh there are two capital markets in our country. One is Dhaka Stock Exchange (DSE), and another is Chittagong Stock Exchange (CSE). History of capital market in Bangladesh: The Dhaka Stock Exchange (DSE) was setup on 28th April, 1954 that started formal...
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...cadogen: entrepreneurial orientation, market orientAtion, network ties and performance: study of entrePRENEURIAL FIRMS IN A DEVELOPING ECONOMY, JOURNAL OF BUSINESS VENTURING 28(2013) Page 708-727 ADISA AFOLARIN O, PRID 1303094 BE 951, MASTER OF FINANCE AND MANAGEMENT TABLE OF CONTENT INTRODUCTION…………………………………………………………………1.O MOTIVATION OF THE RESEARCH………………………………………......1.1 RESEARCH QUESTION………………………………………………………..2.0 THEORETICAL APPROACH…………………………………………………...2.1 EMPIRICAL APPROACH……………………………………………………….3.1 APPROPRIATENESS OF EMPIRICAL METHOD…………………………...3.2 FINDINGS AND CONCLUSION………………………………………………..4.0 FURTHER RESEARCH PROJECTS…………………………………………..4.1 MAIN CONTRIBUTION………………………………………………………….4.2 1.0 INTRODUCTION. This research studies how entrepreneurial firms evaluate performance benefit by simultaneously aligning high level of both entrepreneurial orientation (EO) and manager orientation (MO). It is relevant for firms operating in a developing economy context where these potentials are enhanced for business with strong social and business network ties. Entrepreneurial orientation refers to firms procluivity to explore new market opportunities and as such it manifest itself through a firms tendency to accept innovation, risk-taking, pro-activeness, competitive aggressiveness and autonomy (Lumpkin and Dess, 1996). Market orientation is defined as the implementation of the marketing concept in firms target market (Kohli and Jaworski, 1990) and reflects...
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...Emerging Market Mutual Fund Performance and the State of the Economy∗ Ayelen Banegas November 2010 Abstract Following the financial liberalization of many Asian, European, and Latin American countries emerging markets have become a central player in the global economy. As a result the universe of equity funds investing in these developing economies has been in continuous expansion. In this paper we propose a set of asset class specific predictive variables for emerging markets and exploit them in order to identify those funds that outperform the market in different phases of the economic cycle. We employ a comprehensive survivorship-bias free universe of global and regional emerging market funds and use a Bayesian framework that incorporates predictability in manager skills (stock selection and benchmark timing skills), fund risk loadings and benchmark returns by exploiting ex-ante business cycle related state variables. Our results provide empirical evidence of return predictability and the economic value of active management in emerging markets. ∗ I would like to thank Allan Timmermann for his guidance and support. I am also grateful to James Hamilton, Bruce N. Lehmann, Ross Valkanov and Debbie Watkins for their helpful comments. I also benefited from discussions with Ben Gillen. Finally, I want to thank Russ Wermers for providing me with the mutual fund dataset. 1 1 Introduction During the last decades the mutual fund industry has been continuously...
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...empirical literature as well as in practice both market pioneering and later entrant strategy are outlined to lead to superior product performance. This literature review analyzes which strategy leads to superior product performance under which circumstances. Therefore, a conceptual framework is developed which illustrates the complex relationships of the integrated parameters. A detailed literature review is conducted to analyze theoretical as well as empirical approaches of strategy superiority. A holistic framework is introduced which depicts the superiority of a market strategy under given circumstances. Results suggest that being a pioneer or later entrant is not only a strategic decision on the company’s side but depends on various factors. The superiority of a market entry strategy needs to be evaluated individually for a new product. Finally, recommendations for future research are given. 1. Introduction Nokia’s communicator phones were the first smartphones on the market, including all essential characteristics: online access, navigation as well as apps to facilitate usage. However, being first on the market does not lead to a long-term success of Nokia smartphones. In 2007 Nokia had a market share of 49.4 % of the worldwide smartphone market, in 2012 the market share only adds up to 4.9 %. In April 2014, Nokia’s devices and services business was acquired by Microsoft. However, there are also first mover on the market who are still very profitable. Procter, Gamble...
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...“Discuss how market design can impact upon electronic marketplace performance. Use empirical examples to illustrate and support your answer.” Marketplace performance can be defined as “how efficient a marketplace is in performing its tasks and meeting its objectives, while continuing to innovate, grow and expand”. From the work of O’Reilly and Finnegan, two types of factors were identified which impact upon electronic marketplace performance. These are strategic and contextual factors. From current literature, the researchers identified that three strategic factors impact upon performance: market process design, IT and ownership. Market process design relates to how a market offers its products, IT refers to the IT products being offered, and ownership refers to the controller of the marketplace and the parties who utilise it. O’Reilly and Finnegan found no evidence to suggest IT directly affects performance. However, they found the other two factors to be evident in strategic factors which affect performance. Market Process Design Bias Bias had a noticeable impact on performance in markets that operated in indirect goods. This is evident in BTTransact, IBX and Proceedo where all markets favoured the buyer and experienced a lot of resistance by suppliers. This in turn had a negative impact on buyer adoption levels. Revenue Model The revenue model can impact upon the adoption levels, number of transactions and volumes traded as was the case with BTTransact, Dealcotton,...
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...The definition of Multinational Corporation is hard to explain but in easy words is when a company sells its goods and services in more than one country is recognized as a Multinational Corporation (MNC). The impacts of Multinational Corporations can be negative and positive. But in today’s assignment I am going to talk about Chinese cultures impact on Multinational Corporations. Since 1970s, the multinational corporations in China has changed dramatically when the nation opened its economy and welcomed the direct investment. During the 1980s, MNCs like Motorola, Philips and NEC was welcomed in China with open arms. They used to pay half of the imposed tax rate from the local companies, and also they pay no duties on their goods imports. However, in the beginning of 2000, when per capita GDP went above UD$1,000 and when China joined the World Trade Organization, the consumers and the Chinese government changed their perceptions of MNCs drastically. Multinational Corporations main goal was to fit national interests. Then because of the National cultures impact, MNCs started to follow this rule “Think local and act global”. Chinese consumers have also become more demanding and as a result they don’t really see the difference between products which are made by the MNCs or Chinese companies. For example in 1977 there were 1 million cars in China, by 2008 there were 51 million and now there are 85 million cars in China. Every day that number increase by 38 thousand. Which means somebody...
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...Use an example of your choice to discuss how ‘corporate restructuring’ transformed market, productive and financial performance. Companies quite often have a need to contract and downsize their operations, or redesign one of the aspects, which might be due to different reasons, such as external factors, increase level of competitiveness or to change company’s direction. All the changes that the company might implement are called corporate restructuring. Usually, corporate restructuring is used when a company’s original structure reached the point when it doesn’t generate the profit, and is no longer efficient. The main aim of a corporate restructuring is to raise company’s profitability and internal operations (Froud 2006). I decided to use Caterpillar example to analyse their need of corporate restructuring and its outcomes. Caterpillar Inc. is a $30 billion global company which is known as a manufacturer of large earth-moving equipment and large construction (Neilson & Pasternack 2005). Caterpillar survived from very difficult times in 1980s, mainly because its product reached maturity level, where customers were no longer interested in it and also the CEO of that company did not take into account very important factor – external environment. In 1980s a lot of companies lost their sales because global recession hit the economy and inflation rates grew very quickly. Therefore, Caterpillar’s structure couldn’t handle the pressure and had to be reorganised. Moreover, Caterpillar...
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...For a company owning a worth business in any big stock market always have a tool to analyze its performance. The tool could be like an annual report which deliberately assesses a company’s fiscal health, financial status and market position within any specific period (Thomsett, 2007). Annual reports hold a great importance for organization, especially when the organization is owned by multiple owners or is a public limited firm (Thomsett, 2007). To develop the prospect of the company there is a need for a document like an annual report which gives year after year information about the company performance and growth tactics (Thomsett, 2007). There are different reasons of why enterprises give importance to annual reports. Some of the reasons include clean market analysis, comparative financial assessment and productivity analysis which is no other possible if there are no annual reports to compare. It has been that in markets where there is a major population of investors and share holders then enterprises come out regularly with the activity of reporting (Stittle, 2003). Enterprises know that by announcing their financial health (annual report) publically, they are able to connect to their shareholders, distributors and investors, which is very important for both growth and expansion of the business. Meanwhile, annual reports also assess market position as by expressing financial numbers the feedback of market (consumer, investor, shareholder and competitor) is testified and...
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...Internationalizing Portfolio National Markets / Performance Mini Case Summary International Portfolio Theory and Diversification Group 5 Kristin Hanselmann, Anna Ivaniuk, Lalita Pongpitakwises, Christian Seemann Fachhochschule Mainz - MA.IB International Finance March 2013 K. Hanselmann, A. Ivaniuk, L. Pongpitakwises, C. Seemann International Portfolio Theory and Diversification 1/35 Introduction Diversification / Risk Internationalizing Portfolio National Markets / Performance Mini Case Summary Introduction Christian Seemann International Portfolio Theory and Diversification 2/35 Introduction Diversification / Risk Internationalizing Portfolio National Markets / Performance Mini Case Summary Agenda Introduction International Diversification and Risk Internationalizing the Domestic Portfolio National Markets and Asset Performance Mini Case Summary 1 2 3 4 5 6 Christian Seemann International Portfolio Theory and Diversification 3/35 Introduction Diversification / Risk Internationalizing Portfolio National Markets / Performance Mini Case Summary Introduction Multinational Business Finance Part 5 - Foreign Investment Decisions Chapter 17 Pages 432 – 451 Christian Seemann International Portfolio Theory and Diversification 4/35 Introduction Diversification / Risk Internationalizing Portfolio National Markets / Performance Mini Case Summary International...
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...The GMS: A Broad Conceptualization of Global Marketing Strategy and Its Effect on Firm Performance Shoaming Zou & S. Tamer Cavusgil Introduction The authors in this article develop a broad conceptualization of global marketing strategy, the GMS, that integrates three major perspectives. (1) The standardization, (2) configuration-coordination, and (3) integration perspectives of global marketing strategy. A fundamental proposition of international marketing is that a firm’s global marketing strategy has a positive effect on its global market performance. The purpose of the present research is twofold: First, the authors develop a broad conceptualization of global marketing strategy, named the GMS, to integrate the three major existing perspectives of global marketing strategy. Second, they attempt to substantiate the fundamental relationship between global marketing strategy and a firm’s performance by developing and testing a conceptual model that links the proposed GMS to a firm’s global market performance. They two questions the authors ask in this paper are: 1. What is global marketing strategy? 2. Does it matter whether a firm pursues a global marketing strategy? A brief review of the global marketing strategy literature Many researchers argue that global marketing strategy plays a critical role in determining a firm’s performance in the global market. In the current literature, there exist three major perspectives of global marketing strategy...
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...Jin K. Han, Namwoon Kim, & Rajendra K. Srivastava Market Orientation and Organizational Performance: Is Innovation a Missing Link? In recent years, a market-oriented corporate culture increasingly has been considered a key element of superior corporate performance. Although organizational innovativeness is believed to be a potential mediator of this market orientation-corporate performance relationship, much of the evidence to date remains anecdotal or speculative. In this context, the authors present a systematic framework to test the postulated "market orientationinnovation-performance" chain. To this end, the direct causality assumption of market orientation on organizational performance is examined with Narver and Slater's (1990) market orientation framework. Moreover, the authors take a componentwise approach and examine how the three core components of market orientation (customer orientation, competitor orientation, and interfunctional coordination) affect the two core components of organizational innovativeness (technical versus administrative) en route to affecting corporate performance. Using banking industry data, the authors empirically test and substantiate innovation's mediating role in the market orientation-corporate performance relationship. There is only one valid definition of business purpose: to create a customer... It is the customer who determmes what the business is.... Because it is its purpose to ereate a customer, any business enterprise has two—and...
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...2010, 5943–5961 The impact of market focus on operations practices Tritos Laosirihongthonga, Keah Choon Tanb* and Vijay R. Kannanc Department of Industrial Engineering, Thammasat University, Klong Luang, Pathumtanee 12121, Thailand; bDepartment of Management, University of Nevada, Las Vegas, Las Vegas, NV 89154-6009, USA; cJon M. Huntsman School of Business, Utah State University, Logan, UT 84322-3555, USA (Received 17 December 2008; final version received 3 August 2009) A key element of successful organisations is the alignment of their strategy and tactics. This study explores the relationship between a firm’s competitive strategy and its operations practices in the context of a developing economy. Two competitive strategies are examined; a niche market strategy characterised by targeting specific market segments, and a broad market strategy characterised by serving a wide range of market segments. Three sets of operations practices consistent with the adoption of lean manufacturing, Total Quality Management, and relationship development in a supply chain context, are explored. Using survey data from senior managers in Thailand, results show that for firms adopting a niche market focus, competitive strategy directly influences process management and relationship development, which in turn affect workforce commitment. Only workforce commitment has a direct effect on operational performance. In contrast, for firms adopting a broad market focus, competitive strategy directly...
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