The effect of longevity risks on the performance of stock market

This study investigates the effect of credit risk and macroeconomic factors on profitability of 20 ASEAN banks, particularly from Indonesia, Malaysia, Thailand and Philippines, covering the period of 2012 to 2017. The unbalanced panel data were tested for heteroscedasticity and normality. A fixed effects model and a random effects model were utilized followed by simple ordinary least squares (OLS) regression. The obtained results show that credit risk and GDP growth negatively affect Return on Equity (ROE) at 5% level of significance. The inflation rate increases ROE by 0.323%. In terms of influence, inflation has the highest impact on ROE followed by GDP growth and credit risk. Credit risk and GDP growth negatively affect Return on Assets (ROA) at 5% level of significance. ROA was also influenced by an increase in inflation rate. Therefore, this study will help banks and bank managers, depositors, investors, policy makers and governments to identify factors affecting bank profitability.

The major event of the emergence of the infectious disease COVID-19 has changed the perspective and behavior of investors in the stock market. This study aims to analyze the determinants of the research roadmap cluster in the field of capital market performance. Analysis was conducted on manuscripts published in Scopus-indexed publications from 2020 to the end of 2021. Using the search engine software Publish or Perish (PoP), 400 manuscripts were obtained. Furthermore, manuscripts with high credibility were selected through double-blind review and journal categories. The results of the extraction of 240 article titles and their abstracts using VOSviewer revealed that the determinants of the research roadmap in the stock market during the COVID-19 outbreak were divided into four clusters, namely: 1) an increase in cryptocurrencies such as bitcoin due to the spillover of oil and gold prices; 2) international stock market response and behavior; 3) major stock market performance results such as stock returns and equity; and 4) changes in stock market dynamics in the form of volatility and investor attention.

This study explores the association between family influence in firms and stock market returns in Germany, a country with a less investor-friendly corporate governance system where shareholders cannot directly influence top managers. The study forms portfolios of firms with and without the influence of families as shareholders or members of the firm’s legal bodies. The models estimate portfolio returns from 2003-2013 using a four-factor model. Results suggest that corporate governance is highly correlated with stock returns in Germany. Specifically, they document a significant relationship between family influence and firm valuation. Firms with stronger family influence via voting rights and board-participation are found to have a higher firm value (annualized excess return: 0.48%-6.00%). The study interprets this to mean that families may improve a firm’s internal corporate governance, as their strong motivation and ability to become actively engaged in a firm’s daily operations or to assume a monitoring role distinguishes them from other corporate blockholders. The results add to those of an increasing number of publications finding a positive association between strong family governance and performance. They contribute to a year-long scholarly exploration of performance differences among family and non-family businesses, mainly by defining the former by mere ownership. The study combines a large set of governance provisions into a novel, transparent, and replicable index of family involvement and then estimates the empirical relation with market performance. The index captures influence via shareholder voting rights, considers direct influence of owners on day-to-day operations, and controls for indirect influence via supervisory board.

Acknowledgment
The authors acknowledge support by the Open Access Publication Funds of the HTWK Leipzig.