Effect Of Geographical Diversification On Informational Efficiency In Emerging Countries

Poh , Suan (2016) Effect Of Geographical Diversification On Informational Efficiency In Emerging Countries. Masters thesis, Universiti Sains Malaysia.

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    Abstract

    Objektif utama kajian ini adalah mengkaji kesan kepelbagaian geografi ke atas kecekapan maklumat. Kecekapan maklumat diukur dengan menggunakan ukuran kelewatan harga dan dibahagikan kepada kecekapan maklumat yang berkaitan dengan berita tempatan dan kecekapan maklumat yang berkaitan dengan berita global. Kepelbagaian geografi diproksikan dengan menggunakan 4 pembolehubah yang berbeza iaitu dummy jualan asing, bilangan negara-negara asing, nisbah jualan asing dan Indeks Herfindahl. Kajian ini melibatkan syarikat tersenarai awam dari 12 negara-negara membangun dari tahun 2005 sehingga tahun 2014. Keputusan regresi membuktikan bahawa semua 4 proksi kepelbagaian geografi menunjukkan kesan positif dan penting terhadap kelewatan harga terhadap berita tempatan. Kesemua model regresi dalam kajian ini tidak mengalami masalah heteroskedasticity dan multicollinearity. Semua proksi kepelbagaian geografi kekal penting ke atas kelewatan harga terhadap berita tempatan apabila pengiraan kelewatan alternatif digunakan dan krisis kewangan dikawal dengan menggunakan krisis dummy. Bagi implikasi dasar kerajaan, kajian ini mencadangkan bahawa semua syarikat awam tersenarai harus diberi mandat untuk mendedahkan struktur perniagaan mereka mengikut kawasan geografi dalam laporan tahunan mereka untuk memudahkan proses analisis pelabur. Pendedahan itu boleh memudahkan pelabur untuk melakukan penyelidikan ke atas syarikat dan mengurangkan kos dan halangan pelabur untuk mendapatkan maklumat mengenai syarikat tersebut. The main objective of this study is to investigate the effect of geographical diversification on informational efficiency. Informational efficiency is measured using price delay measure and is further divided into informational efficiency related to local news and informational efficiency related to global news. Geographical diversification is proxied by using 4 different variables which are foreign sales dummy, number of foreign countries, foreign sales ratio and Herfindahl Index. The sample study involves public listed companies from 12 emerging countries ranging from year 2005 to year 2014. The regression results prove that all 4 geographical diversification proxies show positive and significant effect on local price delay. All the regression models in this study are robust to heteroskedasticity and multicolinearlity problems. All geographical diversification proxies remain significant towards local delay when alternative delay measures are used and financial crisis is controlled by using crisis dummy. For implication on the government policy, this study suggests that all geographical diversified public listed companies should be mandated to disclose their business structures according to geographical areas in their annual reports to simplify the analysis process of investors. The disclosure can facilitate investor to do research on the company and reduce the cost and barrier of investor to retrieve information about the company. This policy changes will definitely decrease the price delay caused by geographical diversification and ultimately improve the informational efficiency of stock market.

    Item Type: Thesis (Masters)
    Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28-70 Management. Industrial Management
    Divisions: Pusat Pengajian Pengurusan (School of Management)
    Depositing User: Mr Noorazilan Noordin
    Date Deposited: 28 Feb 2017 12:58
    Last Modified: 28 Feb 2017 12:58
    URI: http://eprints.usm.my/id/eprint/32246

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