Browsing by Author "Kang, Woo-Young"
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Item Open Access 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, MatthiasThe 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 phasesItem Open Access A new approach to optimal capital allocation for RORAC maximisation in banks(Elsevier, 2019-06-13) Kang, Woo-Young; Poshakwale, Sunil S.We introduce a new model for optimal internal capital allocation, which would allow banks to maximize their Return on Risk-Adjusted Capital (RORAC) under regulatory and capital constraints. We extend the single period model of Buch et al., (2011) to a multi-period model and improve its forecasting accuracy by including the debt effect and Bayesian learning innovations. The empirical application shows that our model significantly improves the RORAC of a sample of banks listed in the S&P 500 index.