No abstract

Theory of overconfidence states that investors are highly overconfident when valuing the stocks. Self-attribution has been found by the researchers as the root cause for overconfidence bias in investors. Investors attribute the high stock prices and returns with their own art of picking up the stocks, and thus they trade more frequently. In order to test overconfidence and self-attribution Vector Autoregressive (VAR) model has been employed to find out the long-term relationship between endogenous variables: market return and market turnover and exogenous variables: volatility and dispersion. Results revealed that there exists a strong positive relationship between market returns and trading turnover. Also, the crosssectional standard deviation in market prices i-e volatility and the cross-sectional variation in stock returns i-e dispersion has a very strong impact on trading pattern and returns. Since investment decisions made by Pakistani investor largely depend upon psychological factors, giving less weightage to all the fundamentals, the trading pattern exhibited may collectively tend the market behave in an irrational manner.

The current study explored the relationship between procedural justice and organizational commitment with the moderating role of pay satisfaction. Furthermore, it also aimed to identify the impact of pay satisfaction on organizational commitment. The study was conducted based on the data collected from 400 employees from the telecom sector. The results of study revealed positive and significant impact of procedural justice and pay satisfaction on organizational commitment. It was also found that procedural justice plays a positive and significant role in enhancing organizational commitment behavior. Finally, the findings further suggested that pay satisfaction positively moderates the relationship between procedural justice and organizational commitment. Implications and suggestions are discussed for future research.

We examine the intraday returns and volatility in the US equity market amid the COVID-19 pandemic crisis. Our empirical results suggest an increase in volatility over time with mostly negative returns and higher volatility in the last trading session of the day. Our Univariate analysis reveals structural break(s) since the first trading halt in March 2020 and that failure to account for this may lead to biased and unstable conditional estimates. Allowing for time-varying conditional variance and conditional correlation, our dynamic conditional correlation tests suggest that COVID-19 cases and deaths are jointly related to stock returns and realised volatility.

This paper investigated the effect of corporate governance in improving the earnings multiple and reducing the discretionary accruals. This study developed four econometrics models. Random effect model employed for examining the first three econometric models, while for the fourth econometric model study used Andrew F. Hayes mediation process. Results suggest that BOD size, BOD meetings and audit committee size has a significant positive impact on earnings multiples, while earnings multiples have a negative impact on dictionary accrual. Moreover, BOD size and audit committee size has a significant negative impact on dictionary accrual, whereas BOD meetings and employee ownership has a significant positive impact on dictionary accrual. The results further revealed the novel link that earnings multiples partially mediate the relationship between corporate governance variables and dictionary accrual. The new findings provide important insights for all the stakeholders like government, practitioners, academia, researchers, banks, Bursa Malaysia, security commission and public listed companies.