Template-Type: ReDIF-Article 1.0 Author-Name: Mthuli Ncube Author-Name: Kjell Hausken Title: EVIDENCE ON THE IMPACT OF THE TROUBLED ASSETS RELIEF PROGRAM ON STOCK RETURNS Abstract: In response to the global financial crisis which began in 2008, the US government launched the Troubled Assets Relief Program (TARP), the largest government bailout in US history. TARP was controversial and publicly unpopular. This article examines the market responses to the TARP-related events as reflected in stock returns. Our empirical strategy permits a counterfactual interpretation of the data and provides empirical evidence to answer the question what would have happened to those banks that did in fact receive bailout funds if they had not received the bailout. We find that the market responded favorably to the announcement of TARP, which suggests that the bailout program launch helped restore investors’ confidence in the financial system. However, the market reacted negatively to the receipt of TARP bailout funds. Hence, instead of ensuring certification, receiving bailouts generated an adverse market signal. Our empirical evidence suggests that TARP receipt rather than the announcement by banks to accept TARP funds was essential Classification-JEL: G18, G21, G28 Keywords: TARP Bailout, Abnormal Returns, Tail Risk, Financial Crisis, Counterfactual Journal: The International Journal of Business and Finance Research Pages: 1-30 Volume: 13 Issue: 1 Year: 2019 File-URL: http://www.theibfr2.com/RePEc/ibf/ijbfre/ijbfr-v13n1-2019/IJBFR-V13N 1-2019-1.pdf File-Format: Application/pdf Handle: RePEc:ibf:ijbfre:v:13:y:2019:i:1:p:1-30 Template-Type: ReDIF-Article 1.0 Author-Name: Chun-An Li Author-Name: Tse-Mao Lin Author-Name: Ching-Han Chuang Title: CAN THE OPEN MARKET REACT TO STOCK REPURCHASES ANNOUNCEMENT CORRECTLY? Abstract: In this study, we explore the market reaction to the announcement of stock repurchase plans, and the mutual influence between the actual fulfillment rate of stock repurchase plans and the degree of earnings management. From the perspective of earnings management behavior, this paper also analyzes the actual fulfillment rate, and discusses the information asymmetry, firms may carry out earnings management before stock repurchases, to mislead the investors into believing the prettified financial statements, to induce the investors to invest, and convey false signals to the market. The empirical results demonstrate that the cumulative abnormal return (CAR) resulting from true signals is higher than that resulting from false signals. Further, the phenomenon is more significant in the hi-tech industry than in traditional industries, and the firms with Purpose 3(support the stock prices to maintain firm credit and shareholders' equity), a significant, positive abnormal return is observed on the day before and the day after the announcement day. In bullish periods, abnormal returns are not significant; in bearish periods, a significant, positive abnormal return is observed. These findings are applicable not only to the research samples but also to the samples when the extreme values are removed. Therefore, the empirical results are still robust Classification-JEL: G32, G34, G41 Keywords: Stock Repurchases, Abnormal Returns, Earnings Management Journal: The International Journal of Business and Finance Research Pages: 31-52 Volume: 13 Issue: 1 Year: 2019 File-URL: http://www.theibfr2.com/RePEc/ibf/ijbfre/ijbfr-v13n1-2019/IJBFR-V13N 1-2019-2.pdf File-Format: Application/pdf Handle: RePEc:ibf:ijbfre:v:13:y:2019:i:1:p:31-52 Template-Type: ReDIF-Article 1.0 Author-Name: Gregory Arburn Author-Name: Laura Harper Title: DERIVATIVES MARKETS AND MANAGED MONEY: IMPLICATIONS FOR PRICE DISCOVERY Abstract: Derivatives markets determination of commodities prices should largely be based on production and utilization of the underlying commodity. Certainly, government programs designed to impact production or utilization including expectations associated with those programs, as well as, weather, geopolitical issues, related commodity dynamics, terrorism, etc. could potentially impact prices. Derivatives markets participants such as producers, merchants, warehousers, processors and end users play a fundamental role of providing liquidity through their management of risk. Of increasing significance is managed money. Hedge funds, commodities index contracts, and commodity Exchange Traded Funds (ETFs) are types of managed money that look to commodity derivatives markets to speculate. This research project utilizes panel data, commodities prices and Commodities Futures Trading Commission (CFTC) data on Commitment of Traders (COT) to isolate the impact that managed money has on commodities prices. To this end we employ regression analysis to analyze various periods of time to test our hypothesis that the flow of managed money into and out of commodities derivatives markets creates price changes not consistent with production and utilization Classification-JEL: G10 Keywords: Price Discovery, Managed Futures, Commitment of Traders, Regression, Hedge Funds, Managed Money, Speculation, Derivatives, Futures, Options, Swaps, CFTC Journal: The International Journal of Business and Finance Research Pages: 53-61 Volume: 13 Issue: 1 Year: 2019 File-URL: http://www.theibfr2.com/RePEc/ibf/ijbfre/ijbfr-v13n1-2019/IJBFR-V13N 1-2019-3.pdf File-Format: Application/pdf Handle: RePEc:ibf:ijbfre:v:13:y:2019:i:1:p:53-61 Template-Type: ReDIF-Article 1.0 Author-Name: Li Zhang Author-Name: Norma Nielson Author-Name: Joseph Haley Title: RISK AND RETURN DETERMINANTS OF US INSURERS Abstract: This paper identifies the risk and risk-adjusted return determinants of US insurers. We find that the significant firm-specific determinants for risk and risk-adjusted return vary slightly for the risk proxy and risk-adjusted return proxy used, and the types of insurers. We find that in general, profitability, leverage, types of management compensation are significantly related to both total risk and systematic risk; in addition, size is positively related to systematic risk. Profitability and incentive pay are significant determinants for total-risk-adjusted return. Size is significantly negatively related to systematic-riskadjusted return. In addition to size, profitability and leverage are significant determinants for systematicrisk-adjusted return for Life insurers Classification-JEL: G22 Keywords: Firm-Specific Risk Determinants, Firm-Specific Risk-Adjusted-Return Determinants, Insurance Industry, Executive Compensation, Stock Exchange Journal: The International Journal of Business and Finance Research Pages: 63-72 Volume: 13 Issue: 1 Year: 2019 File-URL: http://www.theibfr2.com/RePEc/ibf/ijbfre/ijbfr-v13n1-2019/IJBFR-V13N 1-2019-4.pdf File-Format: Application/pdf Handle: RePEc:ibf:ijbfre:v:13:y:2019:i:1:p:63-72 Template-Type: ReDIF-Article 1.0 Author-Name: Van-Hop Nguyen Title: DYNAMICS BETWEEN EXCHANGE RATES AND STOCK PRICES: EVIDENCE FROM DEVELOPED AND EMERGING MARKETS Abstract: This study examines the long- and short-run dynamics between exchange rates and stock prices by using cointegration methodology and multivariate Granger causality tests. We apply the analysis to six countries, including: Japan, United Kingdom, Hong Kong, China, India and Brazil over the period December 2007 to May 2013. The evidence suggests that the global financial crisis 2007-2009 is an important determinant of the link between the domestic stock and foreign exchange markets. The exchange rate is negatively related to the domestic stock market for emerging countries but positively for developed countries for entire sample and during the crisis. However, this relationship became positive for all countries after the crisis, except United Kingdom. The finding also indicates that the exchange rate movements contain some significant information to forecast the stock returns of these markets Classification-JEL:C3, F4,G1 Keywords: Stock Price, Exchange Rate, Global Financial Crisis, Multivariate Granger Causality Tests Journal: The International Journal of Business and Finance Research Pages: 73-84 Volume: 13 Issue: 1 Year: 2019 File-URL: http://www.theibfr2.com/RePEc/ibf/ijbfre/ijbfr-v13n1-2019/IJBFR-V13N 1-2019-5.pdf File-Format: Application/pdf Handle: RePEc:ibf:ijbfre:v:13:y:2019:i:1:p:73-84 Template-Type: ReDIF-Article 1.0 Author-Name: Imanou Akala Title: COMPARISON OF THE EUROPEAN AND THE U.S. UNREGULATED STOCK MARKETS DESIGNED FOR SMES Abstract: This paper examines the state of small and medium enterprises (SMEs) in European and U.S. unregulated stock markets. The analysis compares the performance of both markets, using the weekly adjusted closing index prices of Euronext all share index, NYSE AMEX Composite Index, and the OTCM ADR Index for the 2013-2017 period. ADF, EGARCH, and ARCH tests were performed on the collected time series data, to measure and forecast index price volatility, risk and return. The results show a high level of price volatility in some periods; but a permanent effect of shocks was not observed in the long term for all the analyzed indexes. Negative shocks cause more volatility than positive shocks. However, an overall result shows that, the Euronext all share index, despite slight declines, displays an upward trend and relatively higher returns with less risk, than the NYSE AMEX Composite Index, and the OTCM ADR Index. This results reflects the better performance of the European unregulated market, compare to its U.S. counterparts Classification-JEL: M130, G1, C120, C220 Keywords: Small and Medium Enterprises, Stock Markets, Initial Public Offering, Index Prices, Financial Risk and Return Journal: The International Journal of Business and Finance Research Pages: 85-102 Volume: 13 Issue: 1 Year: 2019 File-URL: http://www.theibfr2.com/RePEc/ibf/ijbfre/ijbfr-v13n1-2019/IJBFR-V13N 1-2019-6.pdf File-Format: Application/pdf Handle: RePEc:ibf:ijbfre:v:13:y:2019:i:1:p:85-102