Cross-Listing and Valuation Effects＂ Evidence From Nairobi Securities Exchange

The purpose of this study is to analyze the valuation effects of cross-listing. The study has conducted a univariate analysis of the Tobin＇s Q and the market-to-book ratio for the period before and after the cross-listing by using paired tests. Non-cross-listed firms are then included in multivariate regressions by using pooled Time Series Cross Section （TSCS） and Panel Corrected Standard Error （PCSE） regressions for a period of 13 years to find out if there is a difference in the valuations between cross-listed firms and non-cross-listed firms. The study＇s results indicate that the Tobin＇s Q of cross-listed-firms increases two years prior to cross-listing and that it continues to increase two years after cross-listing. The market-to-book ratios also show an increase two years prior to cross-listing and up to one year after cross-listing, then decrease in the second year after cross-listing. When non-cross-listed firms are included in the analysis, results indicate that cross-listed firms are valued higher than non-cross-listed firms. When data are portioned for positive earnings per share （EPS） and dividends, results indicate that valuation is the highest when EPS is positive. Since segmentation theories cannot be ruled out, the study＇s findings are more in support of the growth opportunity hypothesis.

A Structural Measurement of the Valuation Effect of China's External Assets:Method and Application

Existing research on the measurement of the valuation effect mainly follows the residual method proposed by Lane and Milesi-Ferretti(2001).This cannot be used to perform structural decomposition.We propose an aggregation approach rather than the residual method to measure structurally the investment flow and valuation effect of China's external assets.The results indicate that the valuation effect of China's external assets has been highly volatile and it was negative during the pandemic period.The structural decomposition shows that portfolio investment and direct investment made the main contributions to the valuation effect.The impact of exchange rates on the valuation effect has generally been higher than that of asset price in terms of direct investment and total external assets but the opposite has been true for portfolio investment.China's outward investments are currently more inclined to Asian countries and a few European countries but inflows to China still mainly come from developed countries.

Satisfaction with the Environmental Condition in the Italian Regions between 2004 and 2020

In the following article, the “Satisfaction with the Environmental Condition” in the 20 Italian regions between 2004 and 2020 was estimated using ISTAT-BES data. The data were analyzed using the following econometric techniques, namely: Panel Data with Random Effects, Panel Data with Fixed Effects, Dynamic Panel, Pooled OLS, WLS. The results show that satisfaction with the environmental situation is positively associated with the following variables “People with at least high school diploma”, “Satisfaction with leisure time”, “Concern for the deterioration of the landscape” and negatively associated with “Gross disposable income per capita”, “Dissatisfaction with the landscape of the place of life”, “Perception of the risk of crime”. A cluster analysis was then carried out using the unsupervised k-Means algorithm optimized through the Silhouette coefficient and 3 clusters were found. A comparative analysis was then carried out between eight different machine learning algorithms to predict the trend of satisfaction by environmental situation. The analysis showed that the Tree Ensemble Regression algorithm is the best predictor and estimates a reduction of the variable of 0.05%. Subsequently, using augmented data, a further prediction was made with an estimated result equal to -1.93%.

A New Tri-channel Decomposition of External Adjustment: Model and Application

In this study, we expanded upon the current benchmark model of external adjustment and dissected the concept of international financial adjustment into two distinct components: valuation effect and investment income. Our enhanced model, which we refer to as “tri-channel model,” incorporates three key elements: trade balance, valuation effect, and investment income. Using a consolidated quarterly dataset that encompassed China's balance of payments and international investment positions from 1998 to 2020, we estimated the relative importance of the three newly introduced adjustment channels to China's cyclical external imbalance. We found that the trade balance channel played a major role, accounting for approximately 76 percent of cyclical external adjustment. The contribution of the investment income channel to cyclical external adjustment (21 percent) was much greater than that of the valuation effect channel (3 percent). These findings imply that policy responses to the cyclical external imbalance in China should focus more on the trade balance and investment incomes channels rather than exploiting the valuation effects.

Acquisition Discount and Valuation Effect of Private M＆As in China

An acquisition discount can reflect not only the liquidity demands for unlisted targets but also the strategic requirements, management efficiencies and capital allocations for the listed bidders.Based on Officer(2007), the authors choose an acquisition approach to generate an acquisition discount for unlisted targets. In China, unlisted firms are sold at a deeper discount than listed firms. The deeper discount mainly depends on the liquidity demand and the characteristics of the bilateral trading components. Larger bidders tend to pay more, whereas smaller targets are sold at lower discounts. The values of unlisted targets in the TMT industry are underestimated. Furthermore, buying out unlisted targets can significantly increase the abnormal return of public bidders during the announcement period.Deeper discounts or stock payments have a positive effect on the stock values of the bidders, whereas this positive increase will be weakened if the bidder is large or has a previous ownership relationship.

Valuation effects in China:scale,structure,and its function in external adjustment

At present China’s foreign assets are mainly denominated in foreign currencies,while a large part of foreign liabilities are denominated in domestic currency.Under this situation,the appreciation of domestic currency tends to have negative effects on net foreign assets through the valuation effect channel.This article gives a quantitative estimation of the scale of valuation effects in China and the research results show that the valuation effects in China are negative in the 20 years from 1982 to 2012.Furthermore,the scale of valuation effects has been increasing,which has lowered the scale of China’s net foreign assets.This paper also gives an estimation of the structure of the value effects,and finds that the volatility and the scale of asset price-related valuation effects are larger than that of exchange rate-related valuation effects.The results also show that the exchange rate has played a more and more important role in the fluctuation of value effects.Finally,this paper establishes an econometric model to value the function of valuation effects in the external adjustment and the results show that,during the period of 1981-2012,the role of valuation effects in China’s external adjustment were quite limited,but since 2007,valuation effects have played a more and more important role.