to quantify the effect of financial leverage on stock return volatility in a dynamic general equilibrium economy with debt and equity claims. The effect of financial leverage is studied both at a market and a firm level where the firm is exposed to both idiosyncratic and market risk. In a benchmark economy with both a constant interest rate and constant price of risk, financial leverage generates little variation in stock return volatility at the market level but significant variation at the individual
Role of long term finance for affecting Financial Volatility Komal* *Asst. Prof. (Delhi College of Technology & Management Palwal, Haryana) Abstract This paper inspects how the capacity to get to long haul obligation influences firm-level development volatility. The investigation finds that firms in commercial ventures with more grounded inclination to utilize long-term account with respect to transient money experience lower development volatility in nations with better-created financial frameworks
Impact of derivative trading on the volatility in the stock market of India -Abhinav Barik Abstract This research paper focuses on the impact the derivative trading has had on the stock market of India. The impact is judged by the change in the volatility after the introduction of the derivative trading. In this paper 5 stocks are taken on which derivative trading was introduced and 4 stocks on which derivative trading was not introduced. The daily closing price of those stocks was taken for
analyze the impact of dividend policy on share price volatility for companies listed in the Egyptian stock exchange throughout the period 2008-2012, including a detailed description of the model to be followed along with a specific definition for the variables to be used and how the data shall be analyzed. 3.2 PROBLEM STATEMENT After years of theoretical and empirical researches, the association between dividend policy and share price volatility still remains a source of controversy with absence of
between Dividend Policy Decisions and The Stock Prices Volatility Relationship between Dividend Policy Decisions and The Stock Prices Volatility Abstract The research is conducted to come across the exact relationship between volatility in the stock prices and dividend policy. Multiple Regression analysis and is applied on the available data in order to observe the actual Relationship between the main variables which are Dividend Yield and Volatility in the prices of the stock also with some supporting
Thomas, Spataro and Mathew (2014) test whether volatility diminishes as pension funds investments in stock increases. The hypothesis was pre-defined and clearly mentioned at the beginning of the study in an easy understandable way. To test hypotheses, they use a panel data of 34 OECD countries with specific time range from 2000-2010. They determine the independent variable which is equity market volatility and several dependent variables including the ratio of pension funds assets invested in shares
The growing need of responsiveness for manufacturing companies facing market volatility raises a strong demand for flexibility in their organization, since the company personnel are increasingly considered as the core of the organizational structures, a strong and forward-looking management of human resources and skills is crucial to performance in many industries (El-Awady Attia). This is especially true for industrial fields where human labor is important with low automation rates: industrial structures
Causes of Twenty-First Century Stock Market Volatility based on the Introduction of the Internet and Day Trading Since the late 1980’s the United States has observed several housing market bubbles and subsequent collapses (Calabria 2011, p. 552). Also, the country has also observed a profound increase in the trading of technologies stock (Sabherwal, Sarkar, and Zhang, 2011, p. 1210). In addition, the development of day-trading has taken control of nearly half of the stock trading industry (Chou
may not think much about the stock market when thinking of buying a house because you probably don’t think there is any relationship between the two. However, it is important to keep track of stock market performance, especially during times of volatility because it does have a direct impact on your cost of home ownership. Cheap financing is a major driver of the mortgage industry. When buyers can access cheap funds, it serves as an encouragement to purchase houses while high interest rates dampen
The Case Study of Wan-Sheng Biotechnology Farm – Understanding agricultural Supply Chain for Mitigation of Volatility in the Role of Intermediaries 3. Literature Review 3.1 Agri-food Supply Chains The trend of agriculture market is not usually linear and deterministic (Kellard & Wohar 2006). The characteristics lead to uncertainty and unpredictability of market so that companies in supply chain are hard to make the precise plan of production for upstream suppliers and purchase volume for retailers