Department of Finance

1. What moved share prices in the nineteenth-century London stock market?

Author:Campbell, G;Quinn, W;Turner, JD;Ye, Q


Abstract:Using a new weekly blue-chip index, this article investigates the causes of stock price movements on the London market between 1823 and 1870. We find that economic fundamentals explain about 15 per cent of weekly and 34 per cent of monthly variation in share prices. Contemporary press reporting from the London Stock Exchange is used to ascertain what market participants thought was causing the largest movements on the market. The vast majority of large movements were attributed by the press to geopolitical, monetary, railway-sector, and financial-crisis news. Investigating the stock price changes on an independent list of events reaffirms these findings, suggesting that the most important specific events that moved markets were wars involving European powers.
2. Editorial: Finance and risk management for international logistics and the supply chain


Source:Finance and Risk Management for International Logistics and the Supply Chain,2018,Vol.

3. Supply chain finance and risk management: A selective survey and research agenda


Source:Finance and Risk Management for International Logistics and the Supply Chain,2018,Vol.

Abstract:This chapter first presents a selective survey of the literature on supply chain finance (SCF) and supply chain risk management (SCRM). While many studies have examined working capital management issues, there is a lack of systematic research into other important aspects of SCF, including the process and efficiency of capital investment decisions, sources, and costs of long-term financing, as well as management accounting, financial reporting, and disclosure issues. The literature in SCRM has emphasized definitions, assessment frameworks, and risk mitigation strategies, usually from an operations management perspective. In contrast, there is a dearth of research into economic, management, governance, and financial aspects of SCRM. I outline an agenda for future research that enriches our knowledge of SCF and SCRM through an integrated and multidisciplinary approach.
4. Do Auditors Respond to Media Coverage? Evidence from China

Author:Gong, SX;Gul, FA;Shan, LW


Abstract:SYNOPSIS: This paper examines whether news coverage of client firms is associated with their audit fees. Using data from China listed firms during 2004-2013, we find that high coverage client firms are on average charged higher audit fees, irrespective of the media tone. This positive association is stronger for large auditors than for small auditors, and for bad news than for good news. The main results hold for both state-owned enterprises (SOEs) and non-SOEs, and for both politically connected and non-connected firms. The results are robust after controlling for the effects of information asymmetry, auditor choice, internal corporate governance, and alternative measurements of the key variables. Overall, our evidence is supportive of the view that auditors assess high coverage clients as higher risk audits requiring greater audit efforts. We conclude that the financial news media plays a disciplining role in China through its potential to trigger reputational sanctions and regulatory action.
5. The liquidity of the London capital markets, 1825-70(dagger)

Author:Campbell, G;Turner, JD;Ye, Q


Abstract:This article examines the liquidity of the London capital markets in the decades following the liberalization of UK incorporation law. Using comprehensive stock and bond data, we calculate a measure of market liquidity for the period 1825-70. We find that stock market liquidity trended upwards but bond market liquidity did not increase over the sample period. Stock market liquidity during our sample period was partially influenced by the bond market, rather than fluctuations in economic output. In our analysis of the cross-sectional determinants of individual stock liquidity, we find that firm size and the number of issued shares were important determinants of liquidity. Finally, we find little evidence of an illiquidity premium, which is consistent with the view that investors did not price liquidity in this nascent market.
6. Media Coverage and Stock Returns on the London Stock Exchange, 1825-70

Author:Turner, JD;Ye, Q;Walker, CB

Source:REVIEW OF FINANCE,2018,Vol.22

Abstract:News media plays an important role in modern financial markets. In this article, we analyze the role played by the news media in an historical financial market. Using The Times's coverage of companies listed on the London stock market between 1825 and 1870, we examine the determinants of media coverage in this era and whether media coverage affected returns. Our main finding is that a media effect mainly manifests itself after the mid-1840s and that the introduction of arm's-length ownership along with markedly increased market participation was the main reason for the emergence of this media effect.
Total 6 results found
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