Multifractal Company Market: An Application to the Stock Market Indices

Using the multiscale normalized partition function, we exploit the multifractal analysis based on directly measurable shares of companies in the market. We present evidence that markets of competing firms are multifractal/multiscale. We verified this by (i) using our model that described the critical properties of the company market and (ii) analyzing a real company market defined by the S&P500 index. As the valuable reference case, we considered a four-group market model that skillfully reconstructs this index’s empirical data. We point out that a four-group company market organization is universal because it can perfectly describe the essential features of the spectrum of dimensions, regardless of the analyzed series of shares. The apparent differences from the empirical data appear only at the level of subtle effects.

The impact of qualified audit opinion on stock returns: an empirical study at Amman stock exchange

Purpose This paper aims to investigate the impact of qualified audit opinions on the returns of stocks listed at Amman Stock Exchange (ASE) after the introduction of the recent amendments by the International Auditing and Assurance Standard Board (IAASB) on audits reporting and conclusions. It further investigates if results differ between first time qualified and sequenced qualifications, and between plain qualified opinion and qualifications with going concern. Design/methodology/approach Audit opinions’ announcements and stock returns data are collected from companies’ annual reports for the fiscal years 2016 to 2019 while stock returns are computed from stock closing prices published at ASE website. The authors apply the event study approach and use the market model to calculate normal returns. Cumulative abnormal returns (CARs) and average abnormal returns (AARs) are computed for all qualified audit opinions’ announcements. Findings The empirical evidence suggests that investors at ASE do not react to qualified audit opinions announcements. That is, the authors find an insignificant impact of qualified audit opinion announcements on stock returns using both CAR and AAR estimates. The results are robust to first time and sequenced qualifications, and for qualifications with going concern. Results are also robust to the use of risk adjusted market model. Research limitations/implications The insignificant impact of qualified audit opinions on stock returns have two potential conflicting research implications. First, the new amendments introduced to auditors’ report made them more informative and reduce the negative signals contained in the qualified opinions. That is, investors are now aware of the real causes of qualifications and not overreacting to the qualified opinion. Second, the documented insignificant impact confirms that ASE is not a semi-strong form efficient. Practical implications The apparent excessive use of qualifications should ring the bell on whether auditors misuse their power or companies are really in trouble. Hence, the Jordanian regulatory bodies need to warn auditors against the excessive use of qualifications on the one hand, and to raise the awareness of investors on the implications of auditors’ opinions on the other hand. Originality/value This study is innovative in twofold. First, it explores the impact of qualified audit opinions on stock returns after the introduction of new amendments by IAASB at ASE. In addition, it uses event study approach and distinguishes between first time qualified and sequenced qualifications, and between plain qualified opinion and qualifications with going concern. The results are consistent with efficient market theory and behavioral finance explanations.

Assessment of the sustainability of multipliers as the core of the region's agroeconomic system

This article examines the role of multipliers – subsectors of agriculture, as the core of the agroeconomic system of any region, using the example of the Ural Federal Okrug, and also evaluates their sustainability based on materials from 2010-2015. Three basic subsectors are analyzed as multipliers: grain production, dairy farming and poultry farming. As a result of the author's calculations using the appropriate methods, a conclusion was drawn about the dependence of the basic industries on each other, as well as on the market model in a particular territory.

Reconciling for-profit social service provision with a regulatory framework: Korean long-term care

Korean long-term care was introduced as a national system aimed at a rapid transformation from informal care to universal formal care based on choice and competition. However, it failed to satisfy the prerequisites for such a market model, which resulted in various equity problems. In order to tackle these problems, the government superimposed a regulatory framework on to the market. However, in a situation where providers concentrate on profit maximisation, the enhancement of regulations may partially tackle some problems but new ones are created, such as resistance from providers. This article is a Korean case study which shows that, in a context of low trust, it is difficult to enhance regulations governing the private, for-profit provision of social services to enable the effective operation of choice and competition.

Determinant Factors of the Public Company’s Value which Listed in Indonesia Stock Exchange

The study was conducted to evaluate and analyze the factors that influence the value of the company, using 3 (three) alternative regression models, namely the stock market value; share price to book value; and the rate of return as a proxy for company value. Using the stratified random sampling technique, 22 companies were listed on the Indonesia Stock Exchange over a 10-year period from 2009 to 2018. The appropriate panel data estimation method for analyzing the regression model in this study used the fixed effect model (FEM). Regression results show that the variable of debt to total asset (DAR), return of asset (ROA) and gross profit margin (GPM) significantly influenced the value of the company measured by price to book value (PBV) as the dependent variable. For further research has to pay attention to differences in industry characteristics and also consider to use of other variables, such as age the company and the level of risk of the company that measures with the market model, so that it is possible to get better estimation results.

Rynkowy model polskich ubezpieczeń gospodarczych w rolnictwie w okresie przygotowań do wejścia do UE (lata 1990–2004) The market model of Polish economic insurance in agriculture in the period of preparations for joining the EU (1990–2004)

Funkcjonujący w Polsce od ponad trzydziestu lat model gospodarki rynkowej doświadczał – obok swoich niekwestionowanych osiągnięć – różnego rodzaju kryzysów. Od przełomu XIX i XX wieku gospodarka światowa, wkraczając w fazę nowej rewolucji postindustrialnej, boryka się z licznymi niestabilnościami społeczno-gospodarczymi. Wielu uczonych, w tym nobliści, przewiduje upadek kapitalizmu. Dzisiejszy świat dotykają pogłębiające się problemy gospodarcze, kryzysy społeczne, polityczne i religijne, ubóstwo i głód, a także klęski żywiołowe. Te ostatnie w znacznym stopniu dotykają gospodarkę rolną większości krajów świata. Stosowane dotychczas dość skutecznie w gospodarce światowej modele zabezpieczania działalności człowieka i materialnych skutków ryzyka – przede wszystkim metody ubezpieczeniowe – przestają wystarczać. W ramach systemu neoliberalnej gospodarki współczesny model ubezpieczeń stawia zasadę stałego zysku ponad społecznymi aspektami działalności ubezpieczeniowej. Wprowadzony w Polsce i realizowany ponad trzydzieści lat temu system kontraktowych ubezpieczeń gospodarczych okazał się niezadowalający zarówno dla sektora rolnego, ludności obszarów wiejskich, jak i dla gospodarki narodowej. Niniejsze opracowanie składa się z dwóch artykułów: pierwszy obejmuje okres pierwszych lat transformacji ustrojowej i ubezpieczeniowej, aż do początku uczestnictwa polskiego rynku rolnego w systemie Unii Europejskiej, tj. do połowy 2004 roku; drugi dotyczy okresu funkcjonowania polskiego rynku rolnego w strukturach unijnych. Podjęto także problem perspektyw i kierunków rozwoju systemu ubezpieczeń dla polskiego rolnictwa i ludności obszarów wiejskich, zmierzających do zaspokojenia oczekiwań ochronnych metodami ubezpieczeniowymi.

Two-Player Location-Price Game in a Spoke Market with Linear Transportation Cost

This paper investigates the location game of two players in a spoke market with linear transportation cost. A spoke market model has been proposed, which is inspired by the Hotelling model and develops two-player games in price competition. Using two-stage (position and price) patterns and the backward guidance method, the existence of price and location equilibrium results for the position games is proved.

Optimal Pricing and Service Investment of Home-Sharing Platforms in a Duopoly Market

In this paper, we construct a fully covered duopoly market model. In this market, two home-sharing platforms provide differentiated rental services to consumers, respectively, and each platform has two strategies: short-term rental strategy and long-term rental strategy. This paper studies the pricing decisions and service investment of home-sharing platforms in a competitive market. The results show that, in the market equilibrium, how the platform chooses the strategy largely depends on the service quality of competitors. Specifically, when the difference in service quality is small, it is better for the two platforms to adopt the short-term rental strategy; otherwise, the two platforms are more inclined to adopt the long-term rental strategy. We also find that the commission rate and service cost will also affect the profitability of the platform. Finally, we extend the model to the uncovered market.

The Renewal of Arts, Lives, and a Community through Social Enterprise: The Case of Oficina de Agosto

The present work investigates, with a cultural approach, the emergence of an art-based social enterprise and an art-entrepreneurial ecosystem in Southeastern semi-rural Brazil, shedding light on how local private initiatives may build stronger communities and vice-versa, in a mutually transformative relationship. The focus lies on Oficina de Agosto, a folk-art studio, school, and shop. Fieldwork design combined ethnography and art-based research. The thick description of the phenomenon is organized under the acronym P.L.A.C.E., a conceptual framework describing five principles of community development. The contributions of this study are three-fold: (1) it illustrates how social enterprise may work as an alternative market model that could support community building; (2) it raises awareness to the possibility that social enterprises’ initial social focus may not be perennial or unshakeable, in an undesirable change that might require a both/and mindset and a patient management of paradoxes; and (3) it offers practical managerial recommendations to the SE under focus, which might be extended to other local businesses, or to SEs in other semi-rural Brazilian towns, or even in international settings that might bear economic and social resemblance to our researched context.

P2H Modeling and Operation in the Microgrid Under Coupled Electricity–Hydrogen Markets

The uncertainty and volatility of wind power have led to large-scale wind curtailment during grid connections. The adoption of power-to-hydrogen (P2H) system in a microgrid (MG) can mitigate the renewable curtailment by hydrogen conversion and storage. This paper conducts unified modeling for different types of P2H systems and considers the multi-energy trading in a hydrogen-coupled power market. The proposed bi-level equilibrium model is beneficial to minimize the energy cost of microgrids. Firstly, a microgrid operation model applied to different P2H systems including an alkaline electrolysis cell (AEC), a proton exchange membrane electrolysis cell (PEMEC), or a solid oxide electrolysis cell (SOEC) is proposed at the upper level. Secondly, an electricity market–clearing model and a hydrogen market model are constructed at the lower level. Then, the diagonalization algorithm is adopted to solve the multi-market equilibrium problem. Finally, case studies based on an IEEE 14-bus system are conducted to validate the proposed model, and the results show that the microgrid with a P2H system could gain more profits and help increase the renewable penetration.