The Influence of General Strikes against Government on Stock Market Behavior

Wisniewski, Tomasz Piotr; Lambe, Brendan John; Dias, Alexandra

doi:10.1111/sjpe.12224

Cited by 3 publications

(3 citation statements)

References 76 publications

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“…The reverse may occur if the government policy uncertainty is high. This finding contributes to the literature on the role of government policy in stock markets (Pastor and Veronesi, 2012; Ferguson and Lam, 2016; Wisniewski et al , 2020). Investors' importance to major economic indicators, such as movement of the interest rate, inflation and foreign reserve, influences their decision-making.…”

Section: Discussionsupporting

confidence: 70%

Investment environment, stock market perception and stock investments after stock market crash

Khan

Tan

Chong

et al. 2021

IJOEM

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PurposeThis study examines how the importance of external investment environment factors affect stock market perception, and how stock market perception affects stock investments after stock market crash witnessed by individual investors in one of the emerging stock markets.Design/methodology/approachA cross-sectional survey was administrated among 223 individual investors who experienced stock market crash in 2010–2011 in Bangladesh, and the proposed model was tested by the partial least squares-structural equation modeling PLS-SEM model.FindingsFindings show that the importance of Bangladesh's stock market performance, government policy, economic issues and neighboring country's stock market performance has effects on investors' stock market perception. This perception, in turn, decreases monthly stock trading and short-term investment horizon. The findings further show the mediating effect of stock market perception.Practical implicationsInvestors need to carefully consider the external investment environment when they form their stock market perception, as this perception drives stock investments. Analogously, regulators should ensure releasing timely and updated statistics on external investment factors.Originality/valueAddressing those investors who encountered stock market crash, a set of external investment environment issues, stock market perception and stock investments are new in the literature.

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Section: Discussionsupporting

confidence: 70%

Investment environment, stock market perception and stock investments after stock market crash

Khan

Tan

Chong

et al. 2021

IJOEM

View full text Add to dashboard Cite

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“…We anticipate that stocks that have experienced management shocks, such as strikes and unexpected top management changes, will trade abnormally. Strikes have been found to negatively influence stock prices because they cause investors to lose confidence and perceive an increase in risk (Wisniewski et al 2020). As a result, this loss of stability can trigger increases in trading behavior in the short term.…”

Section: Management Shocksmentioning

confidence: 99%

“…Furthermore, we demonstrate that rumor propagation can be used to predict whether a stock will exhibit abnormal trading behavior in the subsequent 2 months. A multitude of variables have been shown to influence stock trading behavior, including firm strikes (Wisniewski et al 2020) and changes in senior management (Yilmaz and Mazzeo 2014). Rational decisions based on these shocks reflect investor confidence losses.…”

Section: Rationality and The Predictors Of Abnormal Trading Activitiesmentioning

confidence: 99%

Predicting abnormal trading behavior from internet rumor propagation: a machine learning approach

Cheng

Yeo

2023

Financ Innov

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In 2021, the abnormal short-term price fluctuations of GameStop, which were triggered by internet stock discussions, drew the attention of academics, financial analysts, and stock trading commissions alike, prompting calls to address such events and maintain market stability. However, the impact of stock discussions on volatile trading behavior has received comparatively less attention than traditional fundamentals. Furthermore, data mining methods are less often used to predict stock trading despite their higher accuracy. This study adopts an innovative approach using social media data to obtain stock rumors, and then trains three decision trees to demonstrate the impact of rumor propagation on stock trading behavior. Our findings show that rumor propagation outperforms traditional fundamentals in predicting abnormal trading behavior. The study serves as an impetus for further research using data mining as a method of inquiry.

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Towards the environment of legitimacy: Do the institutional quality and policy uncertainty matter for the performance of stock markets of South Asian countries?

Khan,

Ramzan,

Mehmood

et al. 2024

IJOEM

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PurposeThis paper assesses the environment of legitimacy by determining the role of institutional quality and policy uncertainty on the performance of five major South Asian stock markets (India, Pakistan, Bangladesh, Sri Lanka, and Nepal) using 21 years data from 2000 to 2020. The focus of this study is to approach the issue of the environment of legitimacy that leads to sustained market returns.Design/methodology/approachPanel cointegration tests of Kao and Pedroni are applied, and the Dynamic Panel Vector Autoregressive (PVAR) model is used to determine the estimates.FindingsADF P-Values of both Kao and Pedroni tests show that the panels are cointegrated; the statistical significance of the results of the Kao and Pedroni panel cointegration test confirms cointegration among the variables. After determining the most appropriate lag, the analysis is done using PVAR. The results indicate that institutional quality, policy uncertainty, and GDP positively affect stock market return. Meanwhile, government actions and inflation negatively affect stock market returns. On the other hand, stock market return positively affects institutional quality, government action, policy uncertainty, and GDP. While stock market return negatively affects inflation.Research limitations/implicationsThe sample is taken only from a limited number of South Asian countries, and the period is also limited to 21 years.Practical implicationsBased on our research findings, we have identified several policy implications recommended to enhance and sustain the performance of stock markets.Originality/valueThis paper uses a unique analytical tool, which gives a better insight into the problem. The value of this work lies in its findings, which also have practical implications and theoretical significance.

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The Influence of General Strikes against Government on Stock Market Behavior

Cited by 3 publications

References 76 publications

Investment environment, stock market perception and stock investments after stock market crash

Investment environment, stock market perception and stock investments after stock market crash

Predicting abnormal trading behavior from internet rumor propagation: a machine learning approach

Towards the environment of legitimacy: Do the institutional quality and policy uncertainty matter for the performance of stock markets of South Asian countries?

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