Browsing by Author "Jayasekera, Ranadeva"

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    Empirical analysis of debt maturity, cash holdings and firm investment in developing economies
    (Wiley, 2021-01-05) Nnadi, Matthias; Surichamorn, Vachiraporn; Jayasekera, Ranadeva; Belghitar, Yacine
    This study investigates the potential simultaneous relationships among leverage, debt maturity and cash holdings and how these jointly affect financial policy and firms' investment activities in developing countries of Thailand, Indonesia and Singapore during the period 2006–2015. Using the two‐step system GMM estimator, our results show that high‐growth firms not only shorten debt maturity to reduce the underinvestment incentive, but also decrease leverage to reduce liquidity risk. We find evidence that the level of cash holdings is a key determinant of leverage in all countries and that debt policy and growth opportunities affect the investment decision of firms in Thailand and Singapore whereas cash policy is more important in Indonesia. These findings have significant implications for investment decisions in these economies.
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    Loss sensitive investors and positively biased analysts in Hong Kong stock market
    (Springer, 2021-04-10) Choudhry, Taufiq; Dissanaike, Gishan; Jayasekera, Ranadeva; Kang, Woo-Young; Nnadi, Matthias
    The Hong Kong stock market is known to be highly volatile. Professional investors have a strong demand for timely information because of the infrequent nature of Hong Kong analysts’ interim reports (Cheng et al., 2003). Our paper provides a comprehensive study of investor reactions to analysts’ recommendations in the Hong Kong stock market from 2009 to 2014 under different sentiment scenarios. We find that analysts’ recommendation upgrades and downgrades deliver significant information to the Hong Kong stock market. However, analysts’ initiation coverages convey little information and bring about limited impact to the stock market. In addition, analysts’ upgrades and downgrades result in significant differential price impacts in bullish and the bearish phases