Search results for " Liquidity"
showing 10 items of 81 documents
Valuation Effects of Listing on a More Prominent Segment of the Stock Market: Evidence from France
2002
We examine the behaviour of stock prices during the period around the transfer to the Marchea Reglement Mensuel. First, we discuss the financial reasons, which can justify abnormal returns around the transfer. Second, an event study based on a sample of 71 firms is set up to test the existence of the exchange listing effect on the French market. Third, we explore three hypotheses in order to explain the impact on stock returns: the informative content of the transfer, the increase in the relative size of the firm’s investor base, and the reduction of trading costs (immediacy and adverse selection). Cross–sectional regressions show that the increase in the relative size of the firm’s investo…
Classification of Target Markets and Features of Segmentation in Marketing Places
2008
This paper examines target markets and the strategy of marketing places as an economic instrument directed to the development of countries, regions, cities and towns. The authors give a classification of potential target markets of a territory and their characteristics on an example of Latvia.Markets’ segmentation for realizing the strategy of marketing places is of great value as it allows concentrating activity on the most perspective directions of territory development and on methods of particular group attraction. It gives an opportunity to work with separate categories of consumers, to make marketing policy more direct and more expressive, to promote competitiveness of a territory and …
What really causes large price changes?
2003
We study the cause of large fluctuations in prices in the London Stock Exchange. This is done at the microscopic level of individual events, where an event is the placement or cancellation of an order to buy or sell. We show that price fluctuations caused by individual market orders are essentially independent of the volume of orders. Instead, large price fluctuations are driven by liquidity fluctuations, variations in the market's ability to absorb new orders. Even for the most liquid stocks there can be substantial gaps in the order book, corresponding to a block of adjacent price levels containing no quotes. When such a gap exists next to the best price, a new order can remove the best q…
Emerging Markets and the Global Financial Crisis
2010
Over the 1990s, crises developed in emerging markets and, while they did send shockwaves across the world, their effects were perceived mostly by other emerging markets.1 The domestic and international policy recommendations that followed focused on strategies to reduce this instability, seen as a threat to the world economy. At the end of the 2000s, the world seems to have gone upside down. The 2008/2009 global financial crisis started earlier in 2007 with a sharp rise in defaults on sub-prime mortgages in one of the most advanced nations, the US, and quickly spread through the interbank market to become an international credit and liquidity squeeze. The credit crisis involved other indust…
Theory and regulation of liquidity risk management in banking
2016
Liquidity risk is now more important than it used to be in the past. The financial crisis has emphasised the importance of liquidity risk to the functioning of banking and financial system. The paper presents a theoretical and regulatory investigation of two types of liquidity risk: funding liquidity risk and market liquidity risk. The paper analyses the different approaches to measure the impact of funding and market liquidity risk in the economics and management of banks. The paper provides also an analysis of the organisational implications of the asset and liability management perspective of liquidity risk. Liquidity risk does not need to be covered by equity but by an adequate volume o…
Ethical Versus Conventional Banking: A Case Study
2018
The 2008 financial crisis has changed the structure of banking, generating public distrust in the conventional financial system. An alternative has emerged as a result of this lack of confidence. This alternative is known as ethical banking. A growing number of investors, asset managers, and financial intermediaries have incorporated sustainability considerations into their business practices. This paper discusses the origins of ethical banking and describes its primary characteristics. The goal is to determine whether ethical banking can be as profitable as conventional banking despite only investing in projects based on social values. A comparative analysis is performed to identify differ…
STUDY REGARDING THE ANALYSIS OF THE FINANCIAL SITUATION OF THE SOCIETIES FROM THE PHARMACEUTICAL INDUSTRY IN TERMS OF THE CORRELATION BETWEEN THE LIQ…
2015
The relationship between different rates of liquidity and profitability, is one of the most popular topics of research in the financial management field. In order to demonstrate the correlation between these variables, we used the statistical program SPSS. The analyzed societies are: Zentiva, Biofarm and Antibiotice Iasi, listed at the Bucharest Stock Exchange. The research leads to the conclusion that all the societies have sufficient liquidity to cover the payment obligations. Also, using the Pearson correlation coefficient, we demonstrated the fact that the liquidity is one of the indicators that determine the profitability of the analyzed societies.
CLUSTER APPROACH AS ONE OF DETERMINANTS FOR INCREASING COMPETITIVENESS OF RIGA FREEPORT
2011
The cluster-based approach offers a new way of dividing and understanding an economy and competitiveness. The main objective of the present study was to reveal the influence of industrial clusters on Freeport’s of Riga business competitiveness and integrated development. The cluster environment stimulates competitiveness and competition inside the cluster and the industry. One of the reasons for the current problems of Latvia’s competitiveness is the low level of business entities’ co-operation and business integration in the national economy of Latvia and the Freeport of Riga in particular. Companies are isolated in their approaches to increasing their competitiveness and entering the glob…
Goodwill and Criteria for its Recognition in Financial Statements
2004
The article summarises a research on goodwill which is one of the most controversial assets. The research includes a comparison between the descriptions of the economic nature of goodwill and an analysis of various valuation methods and accounting policies. The article discusses the internationally recognised problem that there coexist several accepted methods of accounting for goodwill arising from the acquisition of an enterprise, as a result of which the accountancy data of different enterprises and countries are incomparable.
The relationship between credit ratings and asset liquidity: Evidence from Western European banks
2020
This study examines the role of asset liquidity in Western European banks’ credit rating downgrades and upgrades over the 2005–2017 period. The results suggest that changes in bank credit ratings have been more favorable for banks that have a liquid asset portfolio. Furthermore, asset liquidity has a stronger effect on the credit rating of banks that already have an illiquid asset portfolio. In contrast, the effect is significantly smaller or nonexistent for the most liquid banks. These results imply that the new liquidity regulation introduced by the Basel III requirements will improve the stability and hence decrease the fragility of the European banking sector. Furthermore, the benefits …