Investment exchange ,New York stock exchange and NASDAQ

    Investment Analysis and Portfolio
Management

25/01/2018

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Sir Sufyan Majid

 

Submitted
by

Hamza
Yaqoob (2255 )

B.Com
(hons) 2014-18

 

 

 

 

 

 

                         

                        Literature reviews

Journal
of Corporate Finance

Institutional
investor monitoring motivation and the marginal value of cash

The
basic purpose of their study was to degree the outcome of enthused monitoring
institutional investors on the marginal value of cash holdings. By the end of
year 2015 the collective cash holdings stated by non-financial and non-utility
firms had touched $2.3 trillion, it was of the non-utility and non financial
firms which were listed on American stock exchange ,New York stock exchange and
NASDAQ it represented 22.4% of total firm assets and its was equal to 12.5% of
annual US GDP. Firms might grasp more cash or other liquid assets for the
defensive purpose for when they face higher cash flow doubt, market rivalry, or
credit restraints. They used Baseline regression model. Their sample was
limited to the firms with stock return data from CRSP and annual accounting
information from Compustat. To analyze additional stock returns, they attain
the benchmark break points and benchmark portfolio returns from Kenneth
French’s data library. To concept corporate governance indexes, they used data
from Institutional Shareholder Services. To get the classification of
institutional investors, they excerpt data from Brian Bushee’s personal
website. Their sample time is from 1995 to 2015 . Their conclusion was that firms
may hold cash because they are indefinite about their instant future
environment, or because they want to recollect the flexibility to exploit
investment chances that may rise suddenly. The retaining of cash may therefore be
likely to be valued positively if investors were confident in the firms’
managers. However, cash reserves offer managers the possibility to exploit
their agency position and may, therefore, be value dipping when seen by
sceptical investors.

The article is
taken from Elsevier.com

Journal
of Financial Economics

Non-rating
revenue and conflicts of interest

Credit rating agencies delivers very vital
information in credit markets, and the quality of the ratings they offer is
significant to the working of the financial system, for example, by underlying
a diversity of monetary contracts and rules. Examples about the use of credit
ratings contain loan contracts, financial regulation and investment mandates.
Their samples are between 2010-2015. They capture data on credit ratings and
firms’ industry arrangements from the Centre for Monitoring Indian Economy  Prowess database. This foundation of
high-quality corporate data has been used in many current studies. Credit
ratings for these firms CRISIL, ICRA, CARE, Brickwork, and INDRA and are re-
ported for each firm at the debt security level. While specific debt
instruments does not carry individual identifiers in the database, they are
classified into instrument categories such as debentures, long-term loans, and
term loans. They emphasis on non-structured instruments that are allotted
medium- or long-term credit ratings by the agencies. More, they recollect only
the ten most common instrument categories. The resulting sample consists of ten
debt instrument categories Debentures / bonds / notes/ bills; debt; fixed rate
unsecured non-convertible debentures; fund based financial facility/instrument;
long term loans; non-fund-based financial facility/instrument; term loans;
cash; cash credit; and working capital loans. Every observation in their sample
is a firm-agency-year. Panel A displays a frequency distribution of
observations with non- rating services. Their sample extents from years
2010–2015 and covers 26,760 firm-agency-years. There are 7083 firms in their
sample, of which 473 get non-rating services at some point in the sample
period, corresponding to 1165 observations in their sample. The rest of the
panel reports a breakdown by rating agency; for example, 7.9% of the sample
observations with a CRISIL rating are associated with payments for non-rating
services given by CRISIL. Panel B displays the occurrence of firms with
multiple raters in their sample. 19% of the sample corresponds to firms that
obtain ratings from more than one rating agency in a given year

The article is
taken from Elsevier.com

 

Journal
of Corporate Finance

Executive
turnover and the valuation of stock options

Primary
exercise is an very vital reason for the evaluation of executive stock options
(ESOs) and also for the estimation of American options. Enforced exercises and
regular voluntary exercises inspire a evaluation concession of ESOs to market
dealt options. He examines executive revenue and voluntary exercises via hazard
analysis. He use two main archives for his examination. For the study of
voluntary initial exercise he track executives’ option portfolios using
transaction data based on the SEC’s (Securities and Exchange Commission)
corporate insider filings. For the turnover examination he used annual data on
employment periods and reimbursement from ExecuComp. He used the database from
the year 1996 on as in this year the SEC modified its Securities and Exchange
Act of 1934 and extended insider reporting commitments. In conclusion This
paper contributes to the literature of ESO evaluation by openly modeling two
sources of primary exercise. ESOs have a valuation discount compared to market
traded options, for the reason that ESOs are more to be expected to exercised
early and may even forfeiture before maturity. Thus hopes about the exercise
behavior of the executive are a central component for ESO valuation. The
literature on ESO valuation so far has focused on voluntary exercise as driver
for a value discount of ESOs over market traded options

The article is
taken from Elsevier.com

 

Research
in International Business and Finance

Price
dynamics and speculative trading in Bitcoin

Some
financial revolutions in money markets have gotten more attention by regulators
and policy makers than the commencement of the digital coinage Bitcoin. Bitcoin
value has raised from a few cents to as high as $1,132.26 during last year due
to which is has become popular for both consumers and retailers. We collect
data consists of price and volume from Bitcoin charts which gives us the
monetary and mechanical data about Bitcoin network. The start of our sample
period is from 17 july 2010 and the end of our sample time period is 1 june
2014. They will also collect historic exchange-rate data for 51 other
currencies during the same time period from Bloomberg. The motive behind doing
it to give a simple benchmark when investigating Bitcoin volatility. Some
results are noticeable. First, speculative trading and Bitcoin returns are
distinct. However, volatility and Bitcoin returns are positively correlated.
Fascinatingly, They do not find that volatility is positively linked to speculative
trading. If anything, the reverse is true. These results are robust to both
Pearson and Spearman coefficients and specify that speculative trading in
Bitcoin does not contribute to Bitcoin returns or its instability, per se

The article is
taken from Elsevier.com

 

International financial
markets and institution

International financial markets and institutions play a very
important role in the development of country. In every country there are are
people who have more money then they required. So they wanted to use it and
there are also people who wanted to use money to do some economic activity but
they do not have required money to do this activity. To solve this issue of
affordability financial markets and institutions play the role of intermediary.
There are different types of financial markets which helps both parties to interact
and make agreement with each other

Ø 
Money
market

Ø 
Capital
market

Ø 
Derivative
market

Institutes

Ø 
Central
banks

Ø 
Banks

Ø 
Stock
exchange

Ø 
Swift

Ø 
Eco

Ø 
Bic

 

 

 

 

 

 

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