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Browsing Accounting & Finance by Author "Bhaskaran, Rajesh Kumar"
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Item Energy crypto currencies and leading U.S. energy stock prices: are Fibonacci retracements profitable?(Springer Science and Business Media Deutschland GmbH, 2022-12) Gurrib, Ikhlaas; Nourani, Mohammad; Bhaskaran, Rajesh KumarThis paper investigates the role of Fibonacci retracements levels, a popular technical analysis indicator, in predicting stock prices of leading U.S. energy companies and energy cryptocurrencies. The study methodology focuses on applying Fibonacci retracements as a system compared with the buy-and-hold strategy. Daily crypto and stock prices were obtained from the Standard & Poor's composite 1500 energy index and CoinMarketCap between November 2017 and January 2020. This study also examined if the combined Fibonacci retracements and the price crossover strategy result in a higher return per unit of risk. Our findings revealed that Fibonacci retracement captures energy stock price changes better than cryptos. Furthermore, most price violations were frequent during price falls compared to price increases, supporting that the Fibonacci instrument does not capture price movements during up and downtrends, respectively. Also, fewer consecutive retracement breaks were observed when the price violations were examined 3 days before the current break. Furthermore, the Fibonacci-based strategy resulted in higher returns relative to the naïve buy-and-hold model. Finally, complementing Fibonacci with the price cross strategy did not improve the results and led to fewer or no trades for some constituents. This study’s overall findings elucidate that, despite significant drops in oil prices, speculators (traders) can implement profitable strategies when using technical analysis indicators, like the Fibonacci retracement tool, with or without price crossover rules. © 2022, The Author(s).Item The role of controlling shareholders in influencing firm efficiency: a case of Taiwanese electronics firms(Inderscience Publishers, 2022) Ting, Irene Wei Kiong; Ahmad, Norazlin; Gurrib, Ikhlaas; Bhaskaran, Rajesh KumarThis study examines how controlling shareholders affected efficiency in Taiwanese electronics firms for the period of 2005–2017. This study measures firm efficiency using a dynamic data envelopment analysis model, which returns scores ranging from zero (not efficient) to one (efficient). Our regression results find that controlling shareholders’ levels of shareholdings have significant negative effects on firm efficiency when their shareholding levels are low. However, there is a positive relationship between controlling shareholders’ levels of shareholding and firm efficiency when the percentage of their shareholdings is high. These nonlinear results are also confirmed when we use board seat control rights held by the controlling shareholders. This study contributes to the field of corporate governance, specifically in the application of agency theory related to principal-principal relationships. Overall, findings suggest policy-makers should not consider solely controlling shareholders’ levels of shareholdings, but also their board seat control rights. Copyright © 2022 Inderscience Enterprises Ltd.