Asian Journal of Economics, Business and Accounting https://journalajeba.com/index.php/AJEBA <p style="text-align: justify;"><strong>Asian Journal of Economics, Business and Accounting (ISSN: 2456-639X)</strong> aims to publish high quality papers (<a href="/index.php/AJEBA/general-guideline-for-authors">Click here for Types of paper</a>) in all areas of ‘Economics, Business, Finance and Accounting’. By not excluding papers based on novelty, this journal facilitates the research and wishes to publish papers as long as they are technically correct and scientifically motivated. The journal also encourages the submission of useful reports of negative results. This is a quality controlled, OPEN peer-reviewed, open-access INTERNATIONAL journal.</p> en-US contact@journalajeba.com (Asian Journal of Economics, Business and Accounting) contact@journalajeba.com (Asian Journal of Economics, Business and Accounting) Fri, 27 Jan 2023 08:52:45 +0000 OJS 3.1.1.4 http://blogs.law.harvard.edu/tech/rss 60 Financial Leverage and Market Value of Listed Deposit Money Banks in Nigeria https://journalajeba.com/index.php/AJEBA/article/view/931 <p><strong>Purpose: </strong>The study examined the effect of financial leverage on market value of listed Deposit Money Banks (DMBs) in Nigeria. Specifically, the study examined the effect of short term debt ratio, long term debt ratio, and debt to assets ratio on market value of listed DMBs in Nigeria.</p> <p><strong>Methodology: </strong>The study adopted the ex-post facto research design.&nbsp; A sample of 12 DMBs was drawn from a population of 14 DMBs listed on the Nigerian Exchange Group using the filtering method. Data were sourced from annual reports and accounts of the sampled DMBs in Nigeria. The study period covered ten (10) years from 2011-2020. The random effect regression model was used for data analysis, based on the recommendations of the Hausman Specification Tests results.</p> <p><strong>Findings: </strong>The results of the study suggested that while short term debt ratio has an insignificant positive effect on market value of DMBs in Nigeria, long term debt ratio has a perverse and insignificant effect on market value of DMBs in Nigeria. The result of the study further ascertained that debt to assets ratio has a significant positive effect on market value of DMBs in Nigeria.</p> <p><strong>Recommendations: </strong>The study, therefore, recommended that DMBs in Nigeria should employ a higher proportion of debt financing especially when the funds will be used to increase assets utilization. The study also recommended that listed DMBs in Nigeria should prioritize short term component of financial leverage in their financing mix.</p> Terna David Yimam, Ioraver Nyenger Tsegba, Imoter Moses Duenya ##submission.copyrightStatement## https://journalajeba.com/index.php/AJEBA/article/view/931 Fri, 27 Jan 2023 00:00:00 +0000 Examining the Spillover Effects from Global Stock Markets to Indian Stock Market https://journalajeba.com/index.php/AJEBA/article/view/932 <p><strong>Purpose</strong><strong>: </strong>&nbsp;The study aims to examine the transmission of spillover effects from global stock markets to the Indian stock market. The chosen global markets are CAC-40, DJIA, FTSE 100, SMI, KOSPI, DAX, HANG SENG, and NIKKEI with respect to S&amp;P BSE SENSEX.</p> <p><strong>Design/Methodology/Approach</strong><strong>:</strong> The study uses secondary data. The study period is from 1<sup>st</sup> January 2000 to 4<sup>th</sup> June 2021. The required data for the study has been collected from the Thomson Reuters database. Later the collected data has been tested for stationarity by running the ADF test. Since we found an arch effect in the collected time series data, we ran the GARCH model to investigate the spillover effect from developed stock markets to the Indian stock market by running all the three suggested models such as Normal Gaussian Distribution, Student t Distribution, and GED with fixed parameter. To capture the leverage effect, the researchers have run the EGARCH model to capture spillover asymmetry in the Indian stock market.</p> <p><strong>Findings</strong><strong>:</strong> The ARCH, GARCH, and EGARCH revealed that there was a significant information spillover effect from CAC-40, FTSE 100, SMI, KOSPI, HANG SENG, and NIKKEI on S&amp;P BSE SENSEX. DJIA and DAX were not capable of spreading the spillover effect on BSE SENSEX. The EGARCH revealed that negative shocks in the foreign market created a significant spillover effect in the Indian stock market.</p> <p><strong>Originality and Value: </strong>This study’s empirical analysis would help market participants in understanding the forecasted volatility of Sensex returns and can take this sign as an advantage to converting their holdings into returns. The market participants can also make a decision as to whether they can invest in the Indian stock market and diversify their portfolios.</p> S. Sathyanarayana, B. V. Pushpa, Sudhindra Gargesa ##submission.copyrightStatement## https://journalajeba.com/index.php/AJEBA/article/view/932 Sat, 28 Jan 2023 00:00:00 +0000 The Impact of Cultural Shocks on Investor Sentiment and Herding Behavior: An Evidence during COVID-19 Pandemic https://journalajeba.com/index.php/AJEBA/article/view/933 <p><strong>Aims: </strong>This study investigates herding under covid 19 pandemic.&nbsp; Also, this research aims to measure the effect of investors' sentiment toward herding behavior moderated by culture shock in the emerging market stock exchange.</p> <p><strong>Study Design: T</strong>his study uses a sample of stock that constitutes the liquid index in the emerging market.</p> <p><strong>Place and Duration of Study:</strong> The samples of this study are 26 countries incorporated in emerging stock markets.&nbsp; The observation is 10.192.&nbsp; The duration of the research is from December 2019 to June 2021.</p> <p><strong>Methodology:</strong> This Research uses the model of Chang et al. (2000) to estimate herding behavior as the dependent variable.&nbsp; The independent variable is investor sentiment measured by the VIX and VXEEM indices.&nbsp; Culture shock is assumed as a moderating variable measured by dummy variables.&nbsp; The variables of cultural shock are divided into three phases: the honeymoon phase at the beginning of the covid virus spreading, the lockdown phase, and the new normal phase.&nbsp; The data for culture shock is taken from WHO data.&nbsp; The research will be analyzed with Moderated Regression Analysis with EViews.</p> <p><strong>Results:</strong> The results of this study consist of the following: First, investors in capital markets in developing countries are proven to have anti-herding behavior in making investment decisions during the Covid-19 pandemic.&nbsp; Second, investor sentiment has influenced herding behavior during the Covid-19 pandemic.&nbsp; Lastly, the covid-19 pandemic condition has strengthened investor sentiment to carry out herding behavior, especially in the honeymoon phase or at the beginning of the pandemic.&nbsp; The novelty in this study is introducing the concept of cultural psychology, namely cultural shock as a variable believed to strengthen investor sentiment towards the capital market and cause herding behavior.</p> <p><strong>Conclusion:</strong> The results of this study provide helpful information for developing research in the financial and investor behavior in understanding investor behavior during the Covid-19 pandemic.&nbsp; Investor sentiment toward the possibility of a decline in capital market performance gives rise to irrational behavior (herding).&nbsp; In addition, cultural shocks to new habits during the pandemic can also strengthen investor sentiment and cause herding behavior.&nbsp; It should use a more comprehensive research sample from developed capital markets for further research.</p> Fenny Marietza, Ridwan Nurazi, Fitri Santi, . Saiful ##submission.copyrightStatement## https://journalajeba.com/index.php/AJEBA/article/view/933 Mon, 30 Jan 2023 00:00:00 +0000 The Effect of Financial Performance on Stock Price with Disclosure of Corporate Social Responsibility as a Moderation in Infrastructure Companies https://journalajeba.com/index.php/AJEBA/article/view/934 <p>The aim of this research is to analyze the effect of return on assets and current ratio on stock prices which is moderated by the disclosure of corporate social responsibility. The population in this study are all Infrastructure Sector Companies listed on the Indonesia. Stock Exchange for the 2016 - 2020 period. Sampling in this study used a purpusive sampling method with criteria as (1) Conventional banking companies that are go public and registered with the Financial Services Authority (OJK). for the period 2016 - 2020. The data needed in this study was taken from the Indonesian Capital Market Directory (ICMD) 2016-2020. The data collection method used in this study is the documentation method. The statistical test was carried out using the t test and multiple linear regression analysis, previously the classical assumption test was carried out. The results of this study indicate that: the current ratio and disclosure of corporate social responsibility have a positive effect on stock prices, while the current ratio has no effect on stock prices. disclosure of corporate social responsibility is not able to moderate the return on assets but is able to strengthen the effect of return on assets on stock prices.</p> Roy Budiharjo ##submission.copyrightStatement## https://journalajeba.com/index.php/AJEBA/article/view/934 Tue, 31 Jan 2023 00:00:00 +0000