Browsing by Author "Popp, József"
Now showing 1 - 2 of 2
Results Per Page
Sort Options
- ItemInstitutional ownership and simultaneity of strategic financial decisions: an empirical analysis in the case of Pakistan Stock Exchange(Technická Univerzita v Liberci, 2019-03-15) Sadaf, Rabeea; Oláh, Judit; Popp, József; Máté, Domicián; Ekonomická fakultaThe traditional interpretation of corporate finance is characterized by ownership rights are widely distributed among individual stockholders, but can be managed by few managers and resulted in an agency problem. The primary objective of this research study is to investigate the relationship between institutional ownership and firms’ strategic decisions. These strategic decisions include i.e. leverage, dividend and investment decisions. The examined data is used from 170 non-financial Pakistani listed firms, characterized by a large percentage of institutional investors, with a multiple equity stake in different firms across a wide field of industries. This study is also able to show two important novelties. Firstly, the fact that previous researchers have already concentrated on the impact of institutional ownership on individual strategic decisions, as dividend or leverage policies and several unanswered questions remain. Consequently, the impact of institutional ownership has explored collectively on various strategic decisions. Secondly, this study also recognizes the determination of strategic decisions by considering the endogeneity problem with a Three-Stage Least Square (3SLS) method. Essentially, the effects of institutional ownership on firms’ leverage becomes more pronounced after including industry specific and time dummies in regression models. Based on the results, the case of increased institutional ownership of firms has a significant negative effect on leverage, and a positive effect on dividend decisions. Hence, institutional investors are seemed to prefer low leveraged and high dividend-paying firms. Moreover, this study has not able to find significant two-way relations between institutional ownership and investment decisions, so institutional investors rather focus on corporate governance and internal control of firms. Indeed, institutional investors should develop the efficiency of firms’ management to support more adequate corporate governance policies, and not only for emerging markets.
- ItemSovereign Credit Ratings and Asian Financial Markets(Technická Univerzita v Liberci, ) Pervaiz, Khansa; Virglerová, Zuzana; Khan, Muhammad Asif; Akbar, Usman; Popp, József; Ekonomická fakultaEach region/country seeks to become more efficient to gain the confidence of potential investors. Most of the Asian economies are categorized as emerging markets, where the role of financial markets has even become more intensified to provide financial services to increasing economic and financial activities. Asian financial market has momentously suffered during the Asian, and global financial crisis. The mass destruction was mainly caused due to the mounting uncertainty, which spillover throughout the region, where investors lost their confidence. Considering the pivotal economic role of financial markets, and implications evolve due to sovereign credit rating announcements, this study aims to model the role of sovereign credit rating announcements by Standard and Poor’s, and Moody’s on financial market development of the Asian region. For 24 Asian countries/regions, we perform a regression analysis on sovereign credit rating changes based on financial market development index and its factors. The findings of Driscoll Kraay’s robust estimator reveals that improvement in sovereign credit rating score enhances the financial market development in the region. Moreover, we applied several robustness checks, such as alternative estimators, alternative measures, and three sub-dimensions of financial market development. According to the findings from these robustness checks, the positive impact of sovereign credit ratings on financial market development in the region is robust. Unlike prior literature (which is confined to the event study approach), this study utilizes the historical grades to establish the relationship under the standard error clustering approach. Due to the diversity of investors’ speculations, we propose a micro-level extension of the present model to overcome a difference in country policy.