Author(s): Yong Shi; Ye-ran Tang; Wen Long; Ying-jie Tian; Wen-ning Yang
This paper applies sequence alignment method of bioinformatics to financial analysis to find hidden pattern from financial markets. Results of simulation suggest that sequence alignment method can be used to identify key points to inset, delete and replace data in time series, to find lead-lag relationship between two time series, and to analyze matching patterns. We further propose a new score matrix named similarity-oriented matrix which is designed based on the characteristics of financial time series, and apply it to China?s stock market. The empirical analysis verifies the validity of our proposed score matrix, and tests the sensitivity for different threshold values of symbols definition.
Keywords: Sequence Alignment, Score Matrix, Financial Time Series
Corporate governance and Firm Performance: Empirical evidence from Emerging Market
Author(s): Balagobei, S
Corporate governance (CG) has become a dominant theme in developed and developing countries. This study aims to investigate the impact of CG on firm performance of listed companies in Sri Lanka. Fifty listed companies were selected as sample by using proportion random sampling method. Apart from that secondary data were collected from the annual report of listed companies in Sri Lanka during the period of 2010-2015. This study considers the CG which is measured by board size, board independence, CEO duality, director?s ownership and audit committee as the independent variable while firm performance which is measured by ROA and Tobin?s Q as dependent variable. Multiple regressions and Pearson?s correlation analyses were employed as the main tool of analysing data. The results reveal that the board size and audit committee have significant impact on ROA and board size has significant impact on Tobin?s Q, whereas board independence, CEO duality and director?s ownership have insignificant impact on both firm performance measures such as ROA and Tobin?s Q. Furthermore the board size and audit committee have negative relationship with firm performance. This study suggests that small boards are associated with higher firm performance, possibly through closely monitored managements.
Keywords: Board size, CEO Duality, Audit committee, ROA and Tobin?s Q