generally, high oil prices slow economic growth, cause inflationary pressures and creates global imbalances. in addition, oil price volatility increase uncertainty and restrain the much-needed investment in the capital market. thus, this paper applies the augmented dickey fuller and johansen co-integration tests in which the effect of oil price volatility, crude oil price and stock price is ana...

In this research using theoretical predictions from a real option-based investment framework, the present study aims to examine the effects of stock returns volatilities on changes of working capital accruals of firms. In addition, the moderating effect of variables such as, life cycle and ownership structure on the relationship between stock return volatilities and working capital accruals is ...

1 In this paper, I investigate the relation between stock repurchases and distribution, investment, capital structure, corporate control, and compensation policies over the 1977 to 1996 period. I allow the significance of each motive to change over time to account for adjustments in the percentage of firms influenced by each motive. I find that, throughout the sample period, firms repurchase st...

In a discounted one-sector convex model of optimal economic growth where utility may depend on both consumption and capital stock, I derive necessary and sufficient conditions for sustained growth (unbounded expansion of capital and consumption). Conditions for bounded growth and extinction are also outlined. Optimal paths may be non-monotone. Sustained growth may occur even though the asymptot...

In this section, we provide the proof of our main result, Proposition 1, for the general setup where the economy starts from any initial level of capital stock and prices change over time. In order to do so, we first define the parent’s problem under taxes in the general setup. Preparation to the proof. Let k0 be the initial level of capital stock and {kt }t be the sequence of the efficient cap...

A stock market plays as a strong role in the industrialization and economic development of the country. Among the developing countries, the contribution of the capital market have lately been recognized. This paper assess the Intensifying of Stock Markets (DSE & CSE) in Bangladesh based on Dhaka Stock Exchange (DSE) & Chittagong Stock Exchange (CSE). Information collected from secondary data du...

Based on the premise that non-trading reflects illiquidity, we hypothesize that managers use stock splits to attract more uninformed trading so that market makers can provide liquidity services at lower costs, which increases investors’ trading propensity and improves liquidity. The improvement allows investors to face reduced liquidity risk and require a lower liquidity premium, which in turn ...

Labor immigration changes the quantitative relation between labor and other factors of production, notably capital. The effect of immigration on native wages depends on how fast and how far the size of the capital stock responds to immigration. A benchmark analysis where the capital stock does not respond at all is presented in Borjas (95, 2003). With an estimate of 10% of the US population bei...

The foreign exchange market is one of the biggest markets in the global financial capital market. With current trends toward financial capital globalization, it is becoming more important to understand the co-movement of foreign exchange. Investors always want to get all kinds of messages to make decisions about investing. Moreover, they always look forward to making a profit. This study invest...