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1
Targanski, Klara Petra Theodora, e Werner R. Murhadi. "Sustainable and responsible investment in Indonesia and Malaysia: an event study on SRI-KEHATI and FTSE4GBM Indices". Jurnal Siasat Bisnis 25, n. 1 (1 gennaio 2021): 69–78. http://dx.doi.org/10.20885/jsb.vol25.iss1.art6.
Testo completoAbstract (sommario):
The purpose of this research is to examine the effect of SRI index on abnormal return of added to and deleted stocks of two countries, Indonesia (SRI-KEHATI) and Malaysia (FTSE4GBM). The effect was examined using CAAR of the stock around index announcement. This research was conducted using event study methodology. The samples used in this research are all the stocks that were added to and deleted from SRI-KEHATI index on 2009-2018 announcements and FTSE4GBM index on 2014-2018 announcements. The result of hypothesis test shows that SRI index announcement has negative significant effect to the added stocks to SRI-KEHATI’s CAAR before announcement, after announcement and cumulative periods, to added stocks to FTSE4GBM’s before announcement and cumulative periods, and to deleted stocks from FTSE4GBM’s after announcement and cumulative periods. SRI index announcements has positive significant effect to the deleted stocks from SRI-KEHATI’s CAAR before announcement. Information on SRI index announcements has effects to the decisions made by investors. Indonesian investors reacted negatively toward added stocks but not choosing deleted stock either after announcements. Malaysian investors reacted negatively toward both added and deleted stocks, added stocks are perceived better even if positive CAAR are insignificant after announcements.
2
Ding, David K., Hardjo Koerniadi e Chandrasekhar Krishnamurti. "What Drives the Declining Wealth Effect of Subsequent Share Repurchase Announcements?" Journal of Risk and Financial Management 13, n. 8 (7 agosto 2020): 176. http://dx.doi.org/10.3390/jrfm13080176.
Testo completoAbstract (sommario):
Recent academic studies document that open market share repurchase announcements in the United States generate significantly lower returns than those reported in earlier studies. We find that the lower announcement return is associated with an increasing number of subsequent announcements in the more recent periods. Although the announcement period return from the initial announcement is positive, subsequent announcement returns are significantly decreasing. Further, we find that the decreasing returns of subsequent announcements are attributed to firms with negative past repurchase announcement returns. Our multivariate regression test results are consistent with the notion that the decreasing subsequent repurchase announcement returns are driven by hubris-endowed managers.
3
Frederickson, James R., e Leon Zolotoy. "Competing Earnings Announcements: Which Announcement Do Investors Process First?" Accounting Review 91, n. 2 (1 giugno 2015): 441–62. http://dx.doi.org/10.2308/accr-51190.
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ABSTRACT Consistent with investors having limited attention, we posit that when faced with competing earnings announcements, investors behave as if they queue the announcements based on a firm or earnings announcement attribute. We focus on two potential queuing attributes: (1) firm visibility, and (2) the expected cost of processing the earnings announcements. We find no support for queuing based on the latter, but find a statistically significant and economically meaningful queuing effect based on firm visibility. Earnings announcements made by firms that are more visible than a given firm—but not by firms that are less visible—mitigate the announcement window market response to that firm's unexpected earnings, with a corresponding magnification in its post-earnings announcement drift. Further, the effects of visibility-based queuing are more pronounced for days with greater clustering of earnings announcements. Additional analysis suggests that individual investors—not institutional investors—drive the queuing effect.
4
Yeh, Yin-Hua, Pei-Gi Shu, Fu-Sheng Ho e Yu-Hui Su. "Board Structure, Intra-Industry Competition, and the R&D Announcement Effect". Review of Pacific Basin Financial Markets and Policies 15, n. 02 (giugno 2012): 1250011. http://dx.doi.org/10.1142/s0219091512500117.
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The main purpose of this paper is to investigate how investors perceive and respond to a firm's R&D announcement. We propose that board structure and intra-industry competition jointly dictate the announcement return. In addition, we assume that investors prefer carefully scrutinized R&D investments to mitigate asymmetric-information risks. Finally, we assume that investors prefer a sustainable R&D investment to prevent intense intra-industry competition and to ensure profit potential. We use a sample of 229 announcements made by 116 Taiwanese listed firms to verify our postulation. Our postulation is the abnormal returns are positively correlated with board independence while negatively correlated with board size. We construct two variables to capture intra-industry competition: (i) the number of days that have elapsed since a competitor's prior announcement and (ii) the ordinal number of announcements in the same industry. Our results show that the announcement effect is negatively correlated with industry R&D intensity. The negative effect is partially ameliorated when the lapse since a prior competitor's announcement is long. Moreover, the announcement effect is also lower when the announcing firm has a high-level of R&D intensity and has experienced numerous prior R&D announcements in the same industry.
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Cornejo-Saavedra, Edinson Edgardo, Jorge Andrés Muñoz Mendoza, Carlos Leandro Delgado Fuentealba, Sandra María Sepúlveda Yelpo e Carmen Lissette Veloso Ramos. "Announcements Effect of Corporate Bond Issuance on Stock Returns: Evidence from Chile". Cuadernos de Administración 37, n. 71 (1 dicembre 2021): e2411242. http://dx.doi.org/10.25100/cdea.v37i71.11242.
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This study measures the announcement effect of corporate bond issuance on stock returns for companies listed on the Santiago de Chile Stock Exchange (BCS). The sample is made up of 29 firms and 87 corporate bond issuance announcements during the 2010-2017 period. The announcement effect of corporate bond issuance on stock return is measured by an event study. This methodology allows to calculate abnormal returns for the days of the event period. The results show that the average abnormal return on the day of the announcement is negative (between -0.09% and -0.03%), but it is not statistically significant. However, the average abnormal return on the day after the announcement is positive (between 0.27% and 0.32%) and has statistical significance. The significant and positive average abnormal return on the day after the announcement suggests a late market reaction. The study shows that there is a significant signaling effect of bond issuance announcements on stock returns.
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Spurlin, W. Paul. "Signaling Strength And The Announced Size Of An Open-Market Repurchase". Journal of Applied Business Research (JABR) 32, n. 5 (1 settembre 2016): 1547. http://dx.doi.org/10.19030/jabr.v32i5.9779.
Testo completoAbstract (sommario):
An open question exists as to whether the announced size of an open-market repurchase (OMR) possesses positive signaling effects. Relying on short sales that occur during the five trading days that follow an OMR announcement as an indication of the signaling effect of the size of the OMR program, I find that post-announcement short sales tend to decrease with positive returns surrounding OMR announcements but that post-announcement short sales do not decrease with the announced size of an OMR program. Therefore, I conclude that while announcements of OMR programs serve as positive signals, in general, the announcement of a larger OMR program does not possess a stronger positive signal.
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Das, Santu, Jamini Kanta Pattanayak e Pramod Pathak. "Effect of quarterly earnings announcement under different market conditions". Journal of Indian Business Research 6, n. 2 (10 giugno 2014): 128–54. http://dx.doi.org/10.1108/jibr-09-2013-0087.
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Purpose – The main purpose of this research study is to investigate the impact of quarterly earnings announcements on stock price movement of the firms constituting the SENSEX under two different market conditions – booming followed by recessionary. Analysis of price effect of quarterly earnings announcements during the five-year period prior to trading suspension, which is also characterized by a booming market condition have been made. Similar analysis during the five-year period following the trading suspension and marked by recessionary market condition has also been carried out side by side. Design/methodology/approach – Event study methodology using daily returns and market model has been used for the purpose of analyzing the quarterly earnings announcement effects on the security prices of the firms. A sign test has also been used along with the event study. Findings – The study reveals that quarterly earnings announcement does not have statistically significant effect on stock returns during the booming as well as the recessionary market conditions. The impact of quarterly earnings announcements on stock price movement of firms constituting the SENSEX has been similar for both periods undertaken in the study. Research limitations/implications – The study has been undertaken using the firms listed in BSE SENSEX. The effect of the quarterly earnings announcement with reference to firms listed in other indices, if covered, may provide different sets of results. Originality/value – The paper identifies the informational value of quarterly earnings announcement of BSE-SENSEX.
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Haron, Razali, e Salami Mansurat Ayojimi. "The effect of GST announcement on stock market volatility: evidence from intraday data". Journal of Advances in Management Research 16, n. 3 (15 luglio 2019): 313–28. http://dx.doi.org/10.1108/jamr-11-2017-0102.
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Purpose The purpose of this paper is to examine the effect of GST announcements (pre and post) on Malaysian stock market index. This study also utilised intraday data to look into intraday market volatility post-GST announcement. Design/methodology/approach Both daily closing prices and intraday data of different frequencies are used to capture the extent of stock market volatility as well as the subsided period of the volatility. The period of study ranges from June 2009 to November 2016 and empirical estimation is based on the GARCH (1, 1) model for the pre- and post-GST announcements. Findings Persistent market volatility in the post-GST announcement is empirically recorded and the volatility is higher in the post-GST announcement than the pre-GST announcement. This demonstrates the unwillingness and reaction of the market towards the tax policy implementation. Market expectation on GST implementation towards the increase in the cost of living following the increase in the prices of goods and services in Malaysia is empirically supported in the post-GST announcement. Practical implications The finding on this study is consistent with the expectation of the market that GST implementation will increase the price of the goods and services and hence increase the cost of living. This is supported by a noticeable increase in the stock market volatility in the post-GST announcement. Although GST announcement could be classified as a scheduled announcement, unwillingness to accept the policy prevails as shown by the increase in the stock market volatility. Originality/value The effects of Asian and global financial crisis are the major focus of past studies on stock market volatility, whereas this study examines and highlights the effect of the GST announcement on stock market volatility and the use of intraday data to further examine the nature of the volatility.
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Punwasi, Kiran, e Pradeep Brijlal. "The market reactions to share repurchase announcements on the JSE: an event study". Investment Management and Financial Innovations 13, n. 1 (8 aprile 2016): 191–205. http://dx.doi.org/10.21511/imfi.13(1-1).2016.06.
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This study examines the market reactions to share repurchase announcements made by companies listed on the Johannesburg Stock Exchange from the years 2003 to 2012. The authors use an event study methodology and the Capital Asset Pricing Model to determine if there was an announcement effect when a share repurchase announcement is made. The analyses reveal that consistent with signalling theory and the announcement effect, share repurchase announcements are associated with positive abnormal returns. The average abnormal return and cumulative average abnormal return noted was 0.46% and 3.81%, respectively, for the event period (t-20, t+20). There was an observable trend of declining share prices before the share repurchase announcement. The authors also found no significant evidence that repurchasing firms have market timing ability when executing a share repurchase announcement. From a value investor’s perspective, a share repurchase program conveys a very strong signal of a healthy company
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Kalyani, Dr P., Dr T. Suchitra Rani e Mr Bhavesh Agarwal. "THE EFFECT OF DIVIDEND ANNOUNCEMENT ON STOCK RETURN – A STUDY ON SELECT DAIRY COMPANIES LISTED ON BSE". BSSS Journal of Management 13, n. 1 (30 giugno 2022): 1–8. http://dx.doi.org/10.51767/jm1301.
Testo completoAbstract (sommario):
Empirical evidences on dividend policies support diversified thoughts on the impact of dividend pay-out on the share price of a company. Along with the dividend pay-outs, the reaction of markets to the announcement of dividend is an important factor driving the stock returns of a company. Previous research shows mixed results signalling the effect of dividend announcements on stock returns. The current study aims to examine the effect of dividend announcements on stock returns with reference to Indian Dairy companies. A sample of 30 final dividend announcements made by seven popular dairy food companies listed on BSE during a period of six years i.e, 2016-2021 are considered for the study. A paired sample t test was used to test whether there is significant difference in stock returns between the before and after dividend announcement periods. The results of the study have shown that that there was an increase in the average stock returns of all the seven selected companies in the post dividend announcement period. Further, it was also found that there was a significant impact of dividend announcement on the stock returns of the selected companies.
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Darmawan, Mr. "DIVIDEND OMISSION ANNOUNCEMENT EFFECT TO MARKET REACTION IN INDONESIA STOCK EXCHANGE". IJBE (Integrated Journal of Business and Economics) 2, n. 2 (4 giugno 2018): 14. http://dx.doi.org/10.33019/ijbe.v2i2.72.
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This study examined the signalling theory about how the market / investors respond to dividend announcements made by companies listed on the Indonesia Stock Exchange during the period 2008-2012. This period was chosen because the economy and economic growth of Indonesia is relatively stable. In general, the objective of this research is to develop new theoretical approaches, in an effort to resolve the conceptual controversies regarding the impact of dividend policy on firm value. That in detail, in particular, objective: To analyze and empirically test the market reaction to the announcement dividend omissions, as well as Analyze and test empirically the firm-specific characteristics variables that affect the market reaction. The samples are all companies that announced dividend policy for 5 years as many as 242 companies with 729 event announcements. The results showed that in events dividend announcement found a significant reaction from the market. At the announcement of dividend omissions, there are 5 significant observations with 2 observations fit in theory. The study also shows none of the significant characteristics of the company is able to explain the market reaction to dividend announcements.
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C. Yook, Ken, e Partha Gangopadhyay. "The wealth effects of accelerated stock repurchases". Managerial Finance 40, n. 5 (6 maggio 2014): 434–53. http://dx.doi.org/10.1108/mf-07-2013-0192.
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Purpose – The wealth effect of accelerated stock repurchase (ASR) documented by previous studies is not as large as the authors would have expected. The authors believe that there are potentially important sampling problems in the previous studies, which make the results less reliable. Identifying a number of factors that can possibly affect the announcement-period returns, the purpose of this paper is to reexamine the wealth effect of ASRs. Design/methodology/approach – The paper identifies a number of factors that can possibly affect the announcement-period returns to ASRs which include: whether an ASR announcement in the press is the initiation date or the completion date of the ASR; the size of the ASR program; whether an ASR is part of an open market repurchase (OMR) program; the frequency of ASR announcements by a firm; whether other corporate news is announced simultaneously with an ASR. The paper partitions the ASR sample into three groups, and then examines the wealth effect of these groups. Findings – The empirical results show that the market reacts differently to the announcement of ASR in these three groups. The three-day announcement-period CAR (t=−1, +1) is 3.59 percent for the high-wealth-effect group, 2.01 percent for the medium-wealth-effect group, and 1.48 percent for the low-wealth-effect group. The paper also identifies the size of the ASR program, whether the ASR is announced simultaneously with an OMR or not, and the frequency of ASR announcements are the most important determinants of the announcement-period abnormal returns. Originality/value – These findings suggest that the weaker wealth effects of ASRs that have been documented in previous studies are due to sampling related issues.
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Yang, Xiangyang, Zheng Zhang, Siqi Rao, Bei Liu e Yueyue Li. "How Does Environmental Information Disclosure Affect Pollution Emissions: Firm-Level Evidence from China". International Journal of Environmental Research and Public Health 19, n. 19 (6 ottobre 2022): 12763. http://dx.doi.org/10.3390/ijerph191912763.
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This paper uses the environmental information announcement system as a quasi-natural experiment, cleaning China’s Industrial Enterprise Pollution Database, a unique and comprehensive firm-level database, and merges it with China’s Industrial Enterprise Database. Then, we use the difference-in-differences model to test the effect of environmental information announcements on firm pollution emissions and the transmission mechanism. The empirical results found that environmental information announcement has a significant environmental performance improvement effect. That is, environmental information announcements can significantly reduce pollution emissions. Moreover, the effects of environmental information announcement differ significantly under different regions, city levels, and environmental regulatory intensities. Specifically, in the eastern region, first-class cities, and regions with higher environmental regulations, the emission reduction effects of enterprises are more obvious. Further transmission mechanism test results show that environmental information disclosure has a dual emission reduction mechanism of internal driving and external pressure. Front-end of technological innovation and end-of-end environmental governance are important manifestations in internal driving. Under external pressure, companies will reduce production so as to achieve the goal of reducing pollution emissions.
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Zdaniuk, Agnes, e Nita Chhinzer. "The effect of explanations and CEO presence on stock market reactions to downsizing". Journal of Organizational Change Management 32, n. 4 (1 luglio 2019): 441–56. http://dx.doi.org/10.1108/jocm-06-2018-0161.
Testo completoAbstract (sommario):
Purpose The purpose of this paper is to examine whether the type of explanation (excuses, justifications, apologies and denials) provided for downsizing and the source of the announcement (CEO vs other organizational members) influences shareholders’ market reactions to downsizing announcements. Design/methodology/approach In total, 388 media-based downsizing announcements from 2006–2015 were coded for explanation type and source of message. Cumulative average return was used to assess the impact of downsizing on market reactions the day after the announcement. Findings As predicted, and consistent with predictions drawn from fairness theory, excuses triggered positive market reactions, whereas justifications, apologies and denials triggered negative reactions. Additionally, shareholders reacted more negatively to excuses and apologies when the announcement came from CEOs vs other organizational members. Research limitations/implications The current research bridges the literature on market reactions to downsizing with the organizational psychology literature to advance a novel theoretical framework for predicting shareholders’ reactions to downsizing announcements. In doing so, the authors provide a more refined understanding of why different types of explanations may differentially influence shareholders’ reactions. The current research also sheds light on when the presence of the CEO in downsizing announcements may have potentially negative consequences for organizations. Originality/value The findings contribute to the sparse literature examining variations in the content of downsizing announcements on shareholders’ reactions. The present research is also the first to examine whether shareholders would react less negatively if downsizing explanations came from top organizational leaders (e.g. CEOs).
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Murharsito, Murharsito. "Pengaruh Pengumuman Pembatasan Aktivitas Masyarakat dan Restrukturisasi Kredit terhadap Tingkat Bunga Antar Bank". Balance Vocation Accounting Journal 6, n. 2 (6 gennaio 2023): 172. http://dx.doi.org/10.31000/bvaj.v6i2.7265.
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This study aimed to analyze the effect of public activity restriction announcements and credit restructuring on interbank interest rates in Indonesia during the Covid-19 pandemic. This study used the event study method by analyzing changes in interbank interest rates 5 days before and after the announcement event. The announcement of restrictions on community activities consisted of the announcement of the first Covid-19 case in Indonesia, the first PSBB, the second PSBB and emergency PPKM. Meanwhile, the announcement of credit restructuring consisted of a presidential announcement regarding credit relief, the Minister of Finance regarding MSME credit relief and the Chairman of the OJK regarding extending credit relaxation. From the results of the analysis, only the announcement of the minister of finance regarding MSME credit relief had an effect on interbank interest rates.
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Chavali, Kavita, e Nusratunnisa . "Impact of Dividends on Share Price Performance of Companies in Indian Context". SDMIMD Journal of Management 4, n. 1 (1 marzo 2013): 4. http://dx.doi.org/10.18311/sdmimd/2013/2681.
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The study aims at finding the impact of dividends (cash and stock) on share price performance of companies in the Indian context. A sample of 67 fast moving consumer goods companies who made dividend announcements from April 2007 to August 2011 are taken. In this study, the Market Model Event Study Methodology has been employed to measure the effect of dividend announcements and its impact on the share price with a 41-day event window is taken. The stock price data is collected for 20 days prior to the dividend announcement, the share price on the announcement date (<em>An date</em>) t<sub>0</sub> and 20 days post the dividend announcement. The findings indicate that the market is found to react positively to dividend announcements and with a significantly positive Average Abnormal Returns (AAR) around the announcement date.
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Neururer, Thaddeus, George Papadakis e Edward J. Riedl. "The Effect of Reporting Streaks on Ex Ante Uncertainty". Management Science 66, n. 8 (agosto 2020): 3771–87. http://dx.doi.org/10.1287/mnsc.2019.3320.
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This paper predicts and finds that investor uncertainty surrounding a key information release event—the earnings announcement—is decreasing in a firm’s reporting streak. We use two proxies related to investor ex ante uncertainty and corresponding pricing of such uncertainty: option-implied volatilities and variance risk premiums; both are measured with maturities surrounding the impending quarterly earnings announcement. Consistent with prior research, we measure reporting streak as the number of consecutive quarters the firm meets or beats the consensus analyst earnings-per-share forecast. Empirical results confirm expectations that the two uncertainty-related constructs are decreasing in the length of the reporting streak. These results, combined with further evidence documenting that lower uncertainty leads to lower stock returns surrounding the earnings announcements, suggest that longer reporting streaks reflect lower risk during earnings announcements. This paper was accepted by Shiva Rajgopal, accounting.
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Ball, Ray, e Eli Bartov. "The Earnings Event-Time Seasonal and the Calendar-Time Seasonal in Stock Returns: Naive Use of Earnings Information or Announcement Timing Effect?" Journal of Accounting, Auditing & Finance 10, n. 4 (ottobre 1995): 677–98. http://dx.doi.org/10.1177/0148558x9501000401.
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We document a pattern in the day-of-the-week timing of future earnings announcements that is predictable from knowledge of the current quarter's earnings. The pattern mimics the predictable (+, +, 0, -) dependence previously reported in both seasonally differenced quarterly earnings themselves and in estimated abnormal returns at future quarterly earnings announcement dates (the “SUE effect”; see Rendleman, Jones, and Latané [1987]; Bernard and Thomas [1990]). The predictability of abnormal returns at future earnings announcement dates therefore is not independent of the well-documented day-of-the-week seasonal in stock returns (the “DOW effect”; see Osborne [1962]; Cross [1973]; French [1980]; Gibbons and Hess [1981]). Although the DOW effect is too small to fully explain the SUE effect, it appears to contribute to it, since both past SUE and current earnings announcement DOW are incremental in explaining announcement-day estimated abnormal returns. The unclear role of size and the presence of errors in estimating both unexpected earnings and its announcement day suggest caution in interpreting these results.
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Aamir, Muhammad, e Syed Zullfiqar Ali Shah. "DIVIDEND ANNOUNCEMENTS AND THE ABNORMAL STOCK RETURNS FOR THE EVENT FIRM AND ITS RIVALS". Australian Journal of Business and Management Research 01, n. 08 (17 marzo 2012): 72–76. http://dx.doi.org/10.52283/nswrca.ajbmr.20110108a08.
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Impact of dividend announcement on stock prices is pronounced in various studies conducted by various researchers. Event study has been conducted in this paper on 26 announcements and the firms were belonging to cement and oil and gas sector of Pakistan. In this study data span of 2004-2008 has been covered. Impact of dividend announcement on stock prices of event and rival firms has been analysed and it has been found that dividend announcement depicts positive impact on share prices of the companies at the time of announcement as well as immediately after such announcements. Performance of event firms has been evaluated in comparison with its rival firms in this study in order to give better understanding of dividend announcement effect on the financial health of the companies. Overall, our results robust the findings of earlier research and as per theoretical background of the study. Our conclusion explains the significance of t-statistics values during this study.
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Gupta, Jyoti, e Florian Wagner. "The Announcement Effect of Open-Market Share Buybacks: The Case for European Firms". International Journal of Economics and Finance 10, n. 8 (11 luglio 2018): 117. http://dx.doi.org/10.5539/ijef.v10n8p117.
Testo completoAbstract (sommario):
Using a comprehensive sample of 1830 open-market repurchases of 15 European countries encompassing the period from 1998 until 2013, we analyzed the magnitude and determinants of the share price reaction on announcement. Our results indicate that buyback announcements in Europe lead on average to a significantly positive abnormal return of 0.92% on announcement day, however, decreasing in firm size and announcement frequency. Additionally, our findings show that the market does not particularly greet the distribution of excess cash to shareholders, but rather when companies take advantage of undervalued stock as market-to-book values are inversely related to announcement returns. Looking at the companies’ leverage ratios, the motive of capital structure optimization cannot be supported by the empirical findings. Lastly, with respect to managerial market timing ability we could not observe that buybacks are following a period of share price underperformance, concluding that managers are not able to time the implementation of buyback programs.
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Luo, Yan, e Linying Zhou. "Managerial ability, tone of earnings announcements, and market reaction". Asian Review of Accounting 25, n. 4 (4 dicembre 2017): 454–71. http://dx.doi.org/10.1108/ara-07-2016-0078.
Testo completoAbstract (sommario):
Purpose The purpose of this paper is to examine the effect of managerial ability on the tone of earnings announcements and on the market response to the tone. Design/methodology/approach This study constructs a model of the determinants of earnings announcement tone in order to examine whether managerial ability plays a significant role in determining earnings announcement tone. Further, to test whether the market response to the tone of earnings announcements is affected by managerial ability, this study also examines the interactive term between earnings announcement tone and managerial ability. The tone of earnings announcements is measured using the spread in the proportion of positive and negative words. Managerial ability is measured using the managerial ability rank developed by Demerjian et al. (2012). Findings More able management teams use a more positive tone in their earnings announcements. Stock markets have more pronounced positive reactions to positive tones in the earnings announcements issued by companies with more able management teams. Originality/value This study identifies managerial ability as a previously unrecognized determinant of tone in earnings announcements and of the stock price reaction to earnings announcements.
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Pathak, Hari Prasad, e Sweta Gupta. "Rights Offering and Its Effect on Share Price Movement: A Study of Commercial Banks". Journal of Nepalese Business Studies 11, n. 1 (31 dicembre 2018): 1–13. http://dx.doi.org/10.3126/jnbs.v11i1.24195.
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This paper examines the effect of rights share issue on share price movement in the banking sector covering the period 2007/08 to 2016/17. In order to find out the share price movement in different selected points of time, pre and post right issue and price relatives were calculated considering the price of 90 days before the right announcement date as the beginning index. Five different points of time were selected to observe the share price movements assuming the announcement date as the reference point of time. Stock price data were obtained from the website of NEPSE. The paper uses correlation coefficient to examine whether the overall market movement has any relationship with the individual share price change. Coefficient of determination is used to identify what proportion of the variation in the share price is explained by the event of right share issue. The result shows that right offering announcements have the signaling effect, but it is negative. The share price of Nepalese commercial banks decreases after the announcement of right in spite of the increase in the market index in the corresponding period. The results highlight the information asymmetry behavior which induces a negative change in share price after the rights announcements. The implication of the result is that investors can anticipate the nature of change in share price after rights issue announcements and develop strategic plans to improve the trading activity.
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Bello, Mohammed Aminu, Aminu Kado Kurfi e Bashir Tijjani. "CORPORATE GOVERNANCE AND STOCK MARKET REACTION TO SEASONED EQUITY OFFERING ANNOUNCEMENT BY FIRMS IN NIGERIA". Malaysian Management Journal 25 (9 luglio 2021): 73–98. http://dx.doi.org/10.32890/mmj2021.25.4.
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This study examined the effect of corporate governance variables of board independence, institutional ownership, managerial ownership, board size, and director expertise on the market reaction to seasoned equity offering (SEO) announcements by firms in the Nigerian stock market. The event study methodology was employed, and abnormal returns were computed using the market model. A total of 62 announcements by 38 firms listed on the Nigerian stock exchange from 1st January 2006 to 31st December 2016 were included in the analysis. The study recorded significant positive cumulative abnormal returns before and after the announcement day, and a significant negative cumulative abnormal return upon the announcement day of SEOs. Similarly, significant positive cumulative abnormal returns were recorded six months before the SEO announcement day and negative significant cumulative abnormal returns six, twelve, and twenty-four months after the announcements. Furthermore, there were significant cumulative abnormal returns upon SEO announcements for all the proxies of corporate governance assessed by the study. The implication of the findings of negative significant cumulative abnormal returns on the day of the announcement and beyond was consistent with previous arguments that firms issuing SEOs earn negative abnormal returns on the day of the announcement was the result of the information asymmetry between managers and investors. By contrast, the significant cumulative abnormal returns based on corporate governance suggested that corporate governance significantly impacted on SEO announcement returns in Nigeria. These findings suggest that policy makers should pay more attention to directors’ expertise, institutional ownership, board independence, and board size, as our results showed that investors might view them as dependable pointers of positive corporate information for the market, thus guaranteeing the best use of SEO proceeds.
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Puspitaningtyas, Zarah. "Empirical evidence of market reactions based on signaling theory in Indonesia stock exchange". Investment Management and Financial Innovations 16, n. 2 (19 aprile 2019): 66–77. http://dx.doi.org/10.21511/imfi.16(2).2019.06.
Testo completoAbstract (sommario):
Signaling theory assumes that it is necessary to signal investors to how they perceive company’s prospects. One of them is dividend announcements. The announcement of dividends is predicted to be a signal for investors in the investment decision making process. This study aims to determine and analyze the effect of dividend announcements, both increases and decreases in dividends, on stock returns. This study is intended to find empirical evidence about market reactions based on signaling theory in Indonesia Stock Exchange on the period 2017. The analysis of this study uses the event study method and hypothesis testing carried out using different test paired sample t-test. The results of this study prove that the market reacts to the announcement of dividends. The market reaction is indicated by the value of abnormal returns, namely abnormal returns in the positive direction when the announcement of dividend increased and abnormal returns in the negative direction when the announcement of dividend decreased. The value of abnormal returns in a positive direction reflects the company’s performance in good condition, and vice versa. This result indicates that dividend announcements are a signal and contain information relevant to investors in the investment decision making process.
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Kryzanowski, Lawrence, e Ying Lu. "In government we trust: rise and fall of Canadian business income trust conversions". Managerial Finance 35, n. 9 (31 luglio 2009): 784–802. http://dx.doi.org/10.1108/03074350910973702.
Testo completoAbstract (sommario):
PurposeThe purpose of this paper is to assess the market impact of announcements that publicly traded limited liability firms would convert to business income trusts, and to test the robustness of the tax motive as the primary determinant of any conversion announcement effects by estimating the market impact of the announcement by the Canadian Federal Government that the corporate income of Canadian income trusts would be taxed at the trust level.Design/methodology/approachEvent‐study methodology (including various tests of robustness) is used to examine the market impacts of the initial conversion announcement and the announcement that the corporate income of Canadian income trusts would be taxed at the trust level. Cross‐sectional regressions are used to identify the determinants of the market effect associated with income trust conversion announcements.FindingsThe paper finds that the market‐ and risk‐adjusted abnormal returns (ARs) are positive and very significant on the announcement dates and not significant on the conversion effective dates. The price discovery process is not as smooth for the Canadian government's announcement after the market close on Halloween day 2006, that it would tax income trusts at the trust level. While the ARs are negative and very significant on the first and second trading days after the announcement, much of the second day ARs are reversed in the subsequent two days. Furthermore, negative and significant ARs precede the government announcement. The market impact of trust conversion announcements is primarily related to the tax savings associated with such conversions and more weakly related to potential agency problems associated with free cash flows.Research limitations/implicationsThe research indicates the importance of any taxation changes associated with changes in organization form on firm value. It also identifies the potential for informational leakage associated with government decisions.Originality/valueThe paper highlights the importance of taxes and tax changes and organization form changes on firm valuation.
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Rahmatullah, Dedy, e Diny Ghuzini. "Exchange rate responses to macroeconomic announcement on the COVID-19 pandemic". Jurnal Ekonomi dan Bisnis 26, n. 1 (9 marzo 2023): 45–66. http://dx.doi.org/10.24914/jeb.v26i1.4868.
Testo completoAbstract (sommario):
This study examines the effects of macroeconomic announcements on the USD/IDR exchange rate before and during the COVID-19 pandemic, and the difference between the impact of positive and negative announcements on the exchange rate. To measure the macroeconomic announcement, a surprise component is used, that is the difference between actual data and market forecasts. The data in this research are daily time series from 1 January 2014 to 30 November 2020. The actual data and market forecasts for each indicator are obtained from Bloomberg. To test the exchange rate response to the macroeconomic announcement, the Ordinary Least Square (OLS) analysis method is used with heteroskedasticity and autocorrelation consistent (HAC). This study finds that during the COVID-19 pandemic, the USD/IDR exchange rate is more sensitive to the surprise component of the macroeconomic announcement compared to the period before the COVID-19 pandemic. This research also finds evidence that positive Indonesian news and negative US news have a significant effect on changes in the USD/IDR exchange rate.
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Usman, Bahtiar. "TICK SIZE DAN KUALITAS PASAR DI BURSA EFEK JAKARTA". Media Riset Bisnis & Manajemen 7, n. 2 (10 agosto 2007): 197–214. http://dx.doi.org/10.25105/mrbm.v7i2.1052.
Testo completoAbstract (sommario):
The purpose of this study is to analyze the impact of a tick size change announcement to capital market quality using data from firms listed in Bursa Effect Jakarta. Database classified firms by stock volume level and price level. Generally, there is no evidence to prove that a tick size change announcement have an influence to capital market quality, but for special case we can prove that a tick size change announcement tend to influence capital market quality: i.e for firm that have lower price stock, the reducing tick size announcement will decrease capital market quality and from regression result find that reducing tick size will also decrease capital market quality.Keywords: Announcements, tick size, capital market quality
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Tay, Liang-Mui, Chin-Hong Puah, Rayenda Khresna Brahmana e Nurul Izza Abdul Malek. "The effect of white collar crime announcement on stock price performance". Journal of Financial Crime 23, n. 4 (3 ottobre 2016): 1126–39. http://dx.doi.org/10.1108/jfc-03-2015-0016.
Testo completoAbstract (sommario):
Purpose The purpose of this paper is to investigate the connection between ethics and profitability by examining the association between published reports on white-collar crime and the share-price performance of the Malaysian-listed companies. This study aims to examine the role of white-collar crime in Malaysian-listed companies on its stock-price reaction. Design/methodology/approach Following prior research, even study methodology is used to exploit the stock-price reaction on the white-collar crime announcement. The daily bases of average abnormal returns (AARs) and cumulative average abnormal returns (CAARs) with an event window of 90 days prior to and after the announcements are determined. This study uses public announcement data of white-collar crimes from Malaysian Securities Commission from 1996 to 2013. Findings The finding indicates that an announcement of a white-collar crime has a negative abnormal return on the share price. As a result, the market does not react efficiently toward the information released regarding the incidence of a white-collar crime. Practical implications This study contributes to the managerial decision theory, where managers should be able to see a definite connection between unethical behavior and their firm’s stock. The stockholders and policymakers should find this information important in pressing for greater corporate and managerial accountability. Originality/value Unlike prior research, this paper investigates the stock-price performance due to white-collar crime announcement in the Malaysian context by using complete data set of announcement from 1996 to 2013.
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Sun, Ke. "Do Rating Change Announcements Transfer Effective Information? Test on the Effectiveness and Sustainability of Credit Rating in China". Sustainability 14, n. 21 (28 ottobre 2022): 14086. http://dx.doi.org/10.3390/su142114086.
Testo completoAbstract (sommario):
China is commonly viewed as a country with weak legal institutions and disclosure regulations. The validity and effectiveness of credit rating in China are controversial topics. Bond ratings provide information about the quality and marketability of bond issues. This paper studies the effects of rating change announcements on the price of fixed-income enterprise bonds to test the effectiveness and sustainability of credit rating in China. The results show that upgrade and downgrade announcements have an asymmetric effect on bond prices. Downgrade announcements have transferred new information to the market, resulting in statistically significant negative effects, yet upgrade announcements do not have statistically obvious effects on bond prices. That the average cumulative abnormal returns two days before and on the day of the announcement are statistically insignificant implies that the rating information might not be leaked out before the announcement. The results indicate that the pricing function of credit rating has taken effect, and the effectiveness of the market has been improved over the years. The strengthening of regulations and supervision of the Chinese government toward the credit rating industry may help reinforce the sustainability of the industry and the bond market. The cross-sectional results suggest the market responses are more intense to unpredicted changes of ratings, and investors and portfolio managers should pay more attention to the bonds that have been downgraded for several levels from initial ratings.
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Алешина, Н. А. "Model checking for coalition announcement logic". Logical Investigations 24, n. 2 (10 ottobre 2018): 59–69. http://dx.doi.org/10.21146/2074-1472-2018-24-2-59-69.
Testo completoAbstract (sommario):
This talk is based on joint work with Rustam Galimullin and Hans van Ditmarsh, published in the German Conference on Artificial Intelligence (KI 2018). First I will introduce background and motivation for the work. I will introduce multi-agent Epistemic Logic (EL) for representing knowledge of (idealised) agents, Public Announcement Logic (PAL) for modelling knowledge change after truthful announcements, Group Announcement Logic (GAL) for modelling what kinds of changes in other agents’ knowledge a group of agents can effect, and Coalition Announcement Logic (CAL) which is the main subject of the talk. CAL studies how a group of agents can enforce a certain outcome by making a joint announcement, regardless of any announcements made simultaneously by the opponents. The logic is useful to model imperfect information games with simultaneous moves. It is also useful for devising protocols of announcements that will increase some knowledge of some agents, but also preserve other agents’ ignorance with respect to some information (in other words, preserve privacy of the announcers). The main new technical result in the talk is a model checking algorithm for CAL, that is, an algorithm for evaluating a CAL formula in a given finite model. The model-checking problem for CAL is PSPACE-complete, and the protocol requires polynomial space (but exponential time). DOI: 10.21146/2074-1472-2018-24-2-59-69
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Zhang, Li. "The Effect of Ex Ante Management Forecast Accuracy on the Post-Earnings-Announcement Drift". Accounting Review 87, n. 5 (1 aprile 2012): 1791–818. http://dx.doi.org/10.2308/accr-50197.
Testo completoAbstract (sommario):
ABSTRACT I examine the effect of ex ante management forecast accuracy on the post-earnings-announcement drift when management forecasts about next quarter's earnings are bundled with current quarter's earnings announcements. I build a composite measure of ex ante management forecast accuracy that takes into account forecast ability, forecast difficulty, and forecast environment. The results show that the bundled forecasts with higher ex ante accuracy mitigate investors' under-reaction to current earnings and reduce the magnitude of the post-earnings-announcement drift. Data Availability: The data used in this paper are available from the sources listed in the text.
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Park, Sorah. "Differential Effect Of The Sarbanes-Oxley Act On Individual And Institutional Investors". Journal of Applied Business Research (JABR) 32, n. 2 (1 marzo 2016): 517. http://dx.doi.org/10.19030/jabr.v32i2.9593.
Testo completoAbstract (sommario):
This study investigates the differential effect of the Sarbanes-Oxley Act of 2002 (“SOX”) on unsophisticated individual investors and sophisticated institutional investors. I examine the relationship between abnormal stock returns around quarterly earnings announcements before and after SOX and investor sophistication. Empirical test results show that SOX positively affected stock returns reaction around the quarterly earnings announcement, consistent with prior literature. However, the increased stock returns reaction in the post-SOX period appears to be unrelated to individual investors. I find that the impact of SOX on institutional investor reaction to earnings announcement is statistically significant, whereas individual investor reaction to earnings announcement is not affected by SOX. This suggests that institutional investors have improved on the extent to which earnings information is efficiently priced after SOX, but not individual investors. These findings are important because the differential effect of the accounting disclosure regulation on investors has received little attention in the literature.
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Raza, Sohail, e Shahzad Munir. "The Impact of U.S. Quantitative Easing (QE) Announcements on Indian Government Bond Yields". Asian Journal of Economics, Business and Accounting 23, n. 19 (22 agosto 2023): 179–206. http://dx.doi.org/10.9734/ajeba/2023/v23i191083.
Testo completoAbstract (sommario):
This study investigates the impact of U.S. Quantitative Easing (QE) announcements on Indian Treasury yields. Two outstanding channels of spillover effects on bond yields documented in the existing literature are signalingchannel and portfolio balance channel. This study decomposes Indian Treasury yields into yield expectationsand risk premia to measure spillover effects of U.S. QE announcements. The impact on yield expectationmeasures signaling effect while the impact on risk premia measures portfolio balance effect. It is observed that FOMC announcements of Federal Reserve’s Quantitative Easing (QE) policy treated as shocks to Indian government bond yields. To investigate the announcement effects on Indian government Bond yields, event study methodology is used to capture the change in the bond yields, yield expectation and risk premia of Indian bond market around that time especially during the first round of Quantitative Easing (QE1) policy announcement periods in one-day and two-day window period. To support event study results regression analysis method is implemented and found robust evidence supporting larger signaling effect than the portfolio balance effect. At last, this study uses Dynamic Nelson-Siegel (DNS) yield curve model to compute the relationship between the U.S. and Indian Bond market. DNS model involves two-step estimation using VAR regression on Indian government bond yields with U.S. 10-year Treasury yield changes as an exogenous variable. The statistical result of DNS estimation shows that U.S. 10-year Treasury yield change affects the Indian long-term bond yield during the financial crisis period.
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Chhetri, Shanti Devi, e Ravindra Prasad Baral. "Event Study of Effect of Merger Announcement on Stock Price in Nepal". Journal of Business and Management 5 (31 dicembre 2018): 64–73. http://dx.doi.org/10.3126/jbm.v5i0.27390.
Testo completoAbstract (sommario):
Events like merger and acquisition affect the value of merging firms and also generate a positive or negative wealth effect for shareholders of firms involved. The purpose of this study is to investigate whether a merger announcement has generated wealth effects for the shareholders of bidding and target firms as well as it has aimed to assess the impact on overall banking sector. Two models; mean adjusted model and market risk adjusted model has been used in the study employing the ‘event study’ methodology to examine whether there is presence of abnormal return associated with merger announcement. In this method, 50 days premerger and 30 days post merger period is assumed as estimation period and (-15 and +15) days are taken as the window period. Fifteen financial institutions which entered into merger between years 2010 to 2012 are selected as sample. The findings of this study demonstrated that surrounding the announcement of merger proposals, the premerger abnormal return of individual firms is not significant to zero i.e. return is not affected by the merger announcement. Similarly, the abnormal return of bidding and target firms is not significant which indicates there is no impact of merger announcements on shareholder wealth in Nepalese capital market. Finally, the abnormal return during the premerger and post merger period of individual firms as well as the overall banking sector shows the same result, there is no significant difference on return before and after the merger announcement.
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Chai, Daniel, Ziyang Lin e Chris Veld. "Value-creation through spin-offs: Australian evidence". Australian Journal of Management 43, n. 3 (10 novembre 2017): 353–72. http://dx.doi.org/10.1177/0312896217729728.
Testo completoAbstract (sommario):
We examine announcement effects and the long-run stock performance associated with spin-offs for companies listed on the Australian Securities Exchange. The 3-day announcement effect is a significantly positive 2.93%. Contrary to previous studies, we find no differences between ex post completed and non-completed spin-off announcements. The abnormal returns do not seem to be related to factors found significant in previous studies, such as an increase in industrial or geographical focus, information asymmetry, and the amount of bank debt of the parent company. There is some evidence that Australian spin-offs are associated with a positive long-run excess stock performance for up to 24 months after the spin-off. This effect is mostly driven by focus-increasing spin-offs.
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Chi, Sabrina S., e Devin M. Shanthikumar. "Local Bias in Google Search and the Market Response around Earnings Announcements". Accounting Review 92, n. 4 (1 ottobre 2016): 115–43. http://dx.doi.org/10.2308/accr-51632.
Testo completoAbstract (sommario):
ABSTRACT We examine the impact of distance on internet search, and the effect of the “local bias” in search on the stock market response around earnings announcements. We find significant local bias in search behavior. Motivated by theories explaining local bias, local information advantage, and familiarity bias, we predict and find that firms with higher local bias in search experience higher bid-ask spreads, lower trading volumes, and lower earnings response coefficients at the time of earnings announcements, consistent with non-local investors relying more than locals on public information announcements. Consistent with local information advantage, we find that in the week prior to the announcement, firms with higher local bias have higher bid-ask spreads, higher trading volumes, and returns that are more predictive of the coming earnings surprise. Consistent with familiarity bias, firms with higher local bias in search experience stronger post-earnings announcement drift. We use unique predictions, propensity score matching, and two-stage least squares to identify the effects of local bias separately from the effects of overall visibility. Overall, we show there is significant local bias in search, and that this local bias has a significant impact on the market response around earnings announcements.
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Riyani, Yani. "Pengaruh Pengumuman Kebijakan Dividen terhadap Volatilitas Harga Saham". Eksos 15, n. 2 (13 maggio 2020): 85–94. http://dx.doi.org/10.31573/eksos.v15i2.85.
Testo completoAbstract (sommario):
This study aims to determine the effect of dividend policy announcements on stock price volatility. This research is an event study, with a period of observation 10 days before and after dividend announcement. According to the purposive sampling of 30 companies incorporated in the JII there are 20 companies that meet the criteria to be sampled. The variable used in this study is dividend policy announcements which are proxied by abnormal returns and stock price volatility. By using simple linear regression analysis, the results of the study found that the dividend announcement policy affects the volatility of stock prices. This means that dividend policy announcements contain information that causes shares to react. The results of this study are consistent with the dividend signaling theory which states that dividend policy announcements contain information that can cause stock prices to react.
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Dangol, Jeetendra, e Ajay Bhandari. "Quarterly Earnings Announcement Effect on Stock Return and Trading Volume in Nepal". International Research Journal of Management Science 4 (1 dicembre 2019): 32–47. http://dx.doi.org/10.3126/irjms.v4i0.27884.
Testo completoAbstract (sommario):
The study examines the stock returns and trading volume reaction to quarterly earnings announcements using the event analysis methodology. Ten commercial banks with 313 earnings announcements are considered between the fiscal year 2010/11 and 2017/18. The observations are portioned into 225 earning-increased (good-news) sub-samples and 88 earning-decreased (bad-news) sub-samples. This paper finds that the Nepalese stock market is inefficient at a semi-strong level, but there is a strong linkage between quarterly earnings announcement and trading volume. Similarly, the study provides evidence of existence of information content hypothesis in the Nepalese stock market.
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Bhatt, Madhav Bhargav. "RIPPLE EFFECT OF THE IL&FS CRISIS". INFORMATION TECHNOLOGY IN INDUSTRY 9, n. 2 (13 aprile 2021): 1206–13. http://dx.doi.org/10.17762/itii.v9i2.474.
Testo completoAbstract (sommario):
Non-Banking Financial Companies (NBFC) are those financial institutions which cater to the demand of those customers whom banks think as sub-prime. In India these companies referred to as NBFC are currently very vulnerable and it is a concern for both RBI as well as the government. The major reason for the concern is the 2019 crisis in the NBFC sector. The crisis which ended in late 2019 was not an overnight event. The worsening of the conditions of NBFCs started in the mid-2018 and gradually deteriorated. The whole crisis timeline can be divided in 2 parts. The first part being the period in which the uncovering of the situation happens and the second part is the actions taken against the defaulters and measures to revive the sector. In this paper we have done an event study of the announcements made during the first period which showed the uncovering of crisis. The major announcements which took place in that period were considered and how those announcement affected the stock price of the related companies. The reason for doing this study was to assess the ripple effect of an announcement of one company on the company, industry and economy as a whole.
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Jarboui, Anis, e Emna Mnif. "Cryptocurrency bubble risk and the FOMC announcements during COVID-19 black swan event". Journal of Investment Compliance 22, n. 1 (1 aprile 2021): 95–108. http://dx.doi.org/10.1108/joic-12-2020-0048.
Testo completoAbstract (sommario):
Purpose After the COVID-19 outbreak, the Federal Reserve has undertaken several monetary policies to alleviate the pandemic consequences on the markets. This paper aims to evaluate the effects of the Federal Reserve monetary policy on the cryptocurrency dynamics during the COVID19 pandemic. Design/methodology/approach We examine the response and feedback effects via an event study methodology. For this purpose, abnormal returns (AR) and cumulative abnormal returns (CARs) around the first FOMC (Federal Open Market Committee) announcement related to the COVID-19 pandemic for the top five cryptocurrencies are explored. We, further investigate the effect of the eight FOMC statement announcements during the COVID19 pandemic on these cryptocurrencies (Bitcoin, Ethereum, Tether, Litecoin, and Ripple). In the above-mentioned crypto-currency markets, we investigate the presence of bubbles by using the PSY test. We then examine the concordance of the dates of these bubbles with the dates of the FOMC announcements. Findings The empirical results show that the first FOMC event has a negative significant effect after 4 days of the announcement date for all studied cryptocurrencies except Tether. The results also indicate that cumulative abnormal returns are significant during the event windows of (−3,8), (−3,9), and (−3,10). Besides, we find that Bitcoin, Ethereum and, Litecoin lived short bubbles lasting for a few days. However, Ripple and Tether markets present no bubbles and no explosive periods. Research limitations/implications This paper presents trained proof that FOMC announcements have a positive effect on volatility's predictive capacity. This work therefore promotes the study of the data quality of volatility in future research as well. Practical implications The justified effect of the FOMC announcements on cryptocurrency as a speculative asset has practical implications for investors in building their trading strategies in anticipation of the next FOMC announcement. Therefore, this study implies that the FOMC announcements contain very relevant information for investors in the cryptocurrency market. This research may not only encourage a better understanding of the evolution of the expectations of policymakers, but also facilitate a better understanding of how these expectations are developed. Originality/value The COVID-19 pandemic has disturbed the stability of financial markets, inciting the Fed to take some monetary regulations. To the best of our knowledge, this study is the first one that analyses the response of five major cryptocurrencies to FOMC announcements during COVID 19 pandemic and associates these dates with bubble occurrences.
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Nor Suhaira Jamil, Hamizah Hassan e Imbarine Bujang. "The Effect of Shari’ah Compliance Announcements on Stock Returns in Malaysia". International Journal of Business and Society 21, n. 1 (25 aprile 2021): 217–33. http://dx.doi.org/10.33736/ijbs.3248.2020.
Testo completoAbstract (sommario):
There are increasing demands and interests in Shari’ah compliant stocks in Malaysia. The identification of Shari’ah compliant stocks is known as Shari’ah screening, which is announced to the public twice a year. Hence, the objective of this study is to investigate whether the announcements provide valuable information and the impact of such announcements on stock returns. This study applies market model to estimate the stock returns. Alternative hypotheses that are being tested are the inclusion (removal) of stocks in (from) the Shari’ah Compliant List give a significant effect on the stock Cumulative Average Abnormal Return (CAAR). Employing the event study methodology in years 2007 –2015, this study provides unambiguous evidence that the inclusion of a stock in the Shari’ah Compliant List has increased the price that lead positive stocks returns 1 day within the announcement date. Meanwhile, the removal from the list results a negative stock returns due to the declined of the stock price. As such, the announcements of Shari’ah Compliant List do carry informational value and have significant effect on the stock returns in Malaysian capital market. Shari’ah compliance announcement is significant especially to the Muslim investors to assist them avoiding prohibited investment activities. The present study has significantly contributed to the Malaysian Efficient Market Hypothesis as well as to the practical implication for the companies in avoiding with haram activities.
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Hasan, Fakhrul. "Using UK Data to Study the Effects of Dividends Announcements on Stock Market Returns". Journal of Prediction Markets 16, n. 2 (4 novembre 2022): 47–75. http://dx.doi.org/10.5750/jpm.v16i2.1945.
Testo completoAbstract (sommario):
Using a sample of firms listed on the FTSE-350, this study examines the effects of dividends announcements on the London Stock Exchange (LSE) during the period from 1990 to 2019. We use the dividend-signalling hypothesis to test whether dividends announcements have any effects on stock returns. Our results suggest that dividend increase announcements have a positive effect on stock returns, and dividend decrease announcement reduce stock returns. On average, a dividend increase is estimated to increase stock returns by 6 basis points and a dividend decrease is estimated to reduce stock returns by the same amount. These findings are consistent with the dividend-signalling hypothesis.
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Högholm, Kenneth, e Johan Knif. "Short Term Announcement Returns to the Bidder**". Journal of Corporate Governance, Insurance, and Risk Management 3, n. 2 (30 agosto 2016): 17–45. http://dx.doi.org/10.56578/jcgirm030202.
Testo completoAbstract (sommario):
In this paper we investigate the short term abnormal return to the bidding firm’s shareholders in takeover transactions in Finland during the time period from January 2000 to December 2013. Specific features of the market for corporate acquisitions in Finland are that almost all of the transactions are friendly acquisitions and usually aim for 100 % of the target company. We estimate the abnormal return around 314 individual takeover announcements and investigate determinants of the abnormal returns. Our results show that the takeover announcement on average yields a positive abnormal return to the bidding firm’s shareholders, thus, support the value creating hypothesis. The announcement effect on the announcement day is1.4 % and statistically significant. Both pre-event and post-event abnormal returns are statistically insignificant, although there is sign of a negative revaluation in the post-event period. Among the takeover characteristics, we document a significant impact on the bidder’s abnormal return on the announcement day for small deals yielding a higher abnormal return, but a positive relationship between the announcement effect and the relative size of the deal, cross-border deals giving a smaller abnormal return, and indication of diversification deals giving a higher abnormal return to the bidder’s shareholders.
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Högholm, Kenneth. "Bidder’s Gain in Public M&A Transactions: Does Size Matter?" International Journal of Economics and Finance 8, n. 5 (25 aprile 2016): 1. http://dx.doi.org/10.5539/ijef.v8n5p1.
Testo completoAbstract (sommario):
<em></em>In this paper we investigate the short term abnormal return to the bidding firm’s shareholders in takeovers made by a Finnish company during the time period from January 2000 to December 2013. Specifically, we study takeover transactions involving publicly traded target companies, and are particularly interested in the relationship between the abnormal return to bidder’s shareholders and the size of the transaction. Specific features of the market for corporate acquisitions in Finland are that almost all transactions are friendly acquisitions and usually aim for 100% of the target company. We estimate the abnormal return around 51 individual takeover announcements and investigate determinants of the abnormal returns. Our results show that the takeover announcement on average yields a positive, but insignificant abnormal return to the bidding firm’s shareholders. The announcement effect on the announcement day is 0.63%, while the cumulative average abnormal return for an eleven day event window is 1.39%. Both pre-event and post-event abnormal returns are statistically insignificant, although there is sign of a price run-up during the last week prior to the announcement. We document a significant negative relationship between the bidder’s abnormal return on the announcement day and the size of the deal, but a positive relationship between the announcement effect and the relative size of the deal. We also document a weak negative relationship between the abnormal returns and the relative size of the target to the bidder. Among the other takeover characteristics we do not find any statistically significant relationship to the announcement effect.
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Högholm, Kenneth, e Victor Högholm. "Open Market Repurchase Programs - Evidence from Finland". International Journal of Economics and Finance 9, n. 12 (2 novembre 2017): 13. http://dx.doi.org/10.5539/ijef.v9n12p13.
Testo completoAbstract (sommario):
Share repurchase programs have during the past few decades become an important way of distributing cash to shareholders since they are viewed by managers as more flexible than dividends. Open market repurchase authorizations effectively also give managers an option to repurchase shares when they view their stock as undervalued. This study exploits a data set of open market repurchases programs initiated by Finnish stock market listed companies. Finland is unique with regard to the disclosure requirements of open market repurchase programs, which enables an examination of the information content in both the initiation announcement as well as in the announcement of actual repurchases. The study covers all 293 share repurchase programs initiated between 1998 and 2013. The results show a significant positive announcement effect of about 2 percent on the initiation day. The CAAR over a five day event window is also about 1.5 percent (statistically significant). Furthermore, an additional statistically positive effect of 1.5 percent is found on the first repurchase day (about 1.1 percent over a five day event window). The positive announcement effect is larger for announcements regarding initiations of the first or the second repurchase program for a company.
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Nicolau, Juan Luis, Abhinav Sharma e Tal Zarankin. "The effect of the 2018 Giro d’Italia on Israel’s tourism firm value". Tourism Economics 25, n. 7 (7 gennaio 2019): 1070–83. http://dx.doi.org/10.1177/1354816618820774.
Testo completoAbstract (sommario):
On September 18, 2017, the organizers of the 2018 Giro d’Italia announced that for the first time in its history, this world famous event would begin outside of Europe—in Israel. This article contributes to the literature by taking advantage of this unique opportunity of analysis; in particular, it tests the effect that this announcement had upon Israeli tourism companies’ market value. The results show that on the very same day the announcement was made, there was an increment in the firm value of these companies. We propose a conceptual model and argue that the hype generated helps enhance the country’s image, leading to higher expectations of incoming tourism. This article presents a contribution to the growing evidence regarding the impact of such announcements upon actual market value of tourism companies.
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Ferretti, Marco, Giorgia Profumo e Ilaria Tutore. "Shock events and corporate announcements". Journal of Communication Management 19, n. 1 (2 febbraio 2015): 81–101. http://dx.doi.org/10.1108/jcom-12-2012-0092.
Testo completoAbstract (sommario):
Purpose – The purpose of this paper is to verify if, in case of a shock event, there are types of corporate announcement that may influence stock price behaviour better than others. The authors also try to determine if the communication strategy may be affected by the type of shock event. Design/methodology/approach – Using the event study analysis, the authors estimate the Cumulative Abnormal Returns associated to the stocks of the selected firms hit by a shock event, in order to visualise the effectiveness of different types of corporate announcements after the event. Findings – The research confirms the negative effect of shock events on corporate stocks’ value. Moreover, the study envisages that financial market rewards companies that assume consistent and reassuring announcements during the event window. The authors also find that the effectiveness of corporate announcements is related to the shock’s typology. Research limitations/implications – The study employs a small and unbalanced sample of shock events. Moreover, it does not exist a generally accepted criterion to define and classify corporate announcements and the authors cannot exclude the influence of the media in the categorisation process of the announcements. Practical implications – Since shock events may threat firms’ survival, by knowing which response strategy fits better a shock situation, a manager can assess the potential effect of his communication options and choose the right type of announcement. Originality/value – There is a lack of literature on this theme, in particular on the effects that the different corporate announcements following a shock event may have on shareholders’ value.
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Huang, Hsu-Huei, Min-Lee Chan e Yu-Sheng Chang. "Risk to Firm Value for Taiwanese Companies Investing in China: Who Fares Better?" Review of Pacific Basin Financial Markets and Policies 13, n. 02 (giugno 2010): 237–66. http://dx.doi.org/10.1142/s0219091510001937.
Testo completoAbstract (sommario):
The main purpose of this paper is to study the effect on the stock price that a Taiwanese company may experience when announcing it is engaging in foreign direct investment in China. This study has been able to observe the influence of political risk on the FDI announcement effect during one of the tensest periods in the history of the cross-Strait relationship. We have found an overall significantly negative effect for all companies in Taiwan that announced they were investing directly in China during this risky period. We have further found that companies with higher free cash flow and greater information asymmetry experience worse stock price reactions to such announcements, and that those with low growth opportunities, higher institutional shareholdings, outside directors on the board, or a higher ratio of outside directors experience better stock price reactions to the announcements. Finally, we have found that the FDI announcement effect is better for firms whose board chairman also serves as the CEO or for firms that are family controlled.
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Jang, Seung-Hyun, e Pyung Sig Yoon. "Discount Rates, Subscription Prices, and Subscription Rates in Equity Rights Offerings". Korean Journal of Financial Studies 51, n. 2 (30 aprile 2022): 177–211. http://dx.doi.org/10.26845/kjfs.2022.04.51.2.177.
Testo completoAbstract (sommario):
This study analyzes the wealth effect of discount rates, subscription price announcement effects, and subscription rates with 407 equity rights offerings (with unsubscribed shares to the public) announced between 2004 and 2016. The major results of this study are as follows. First, the market not only responds negatively to the right offering announcements (3-day CAR of -13.83%) but also to announcements of final subscription prices (3-day CAR of -4.85%). The announcement effects of final subscription prices are not related to changes in subscription prices, but become more negative as announcements are delayed. Second, the discount rate significantly affects the wealth effects. This means that discount rates provide the information on firms’ future prospects. Firms with low information asymmetry and high ownership by the largest shareholders choose lower discount rates. Third, the non-subscription rate is about 14% and wealth transfer due to non-subscription is 7.08% of the amount raised by the right offerings. As the offering process is delayed, the subscription rates decrease. In addition, the listing of subscription rights have a significant positive impact on subscription rates. However, as market value decrease due to a right offering is similar to the amount raised, firms should consider alternative financing methods.
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KUDRYAVTSEV, Andrey, Shosh SHAHRABANI, Aviad DIDI e Eyal GESUNDHEIT. "DIFFERENTIAL EFFECTS OF TARGET PRICE RELEASES ON STOCK PRICES: PSYCHOLOGICAL ASPECTS". Theoretical and Practical Research in the Economic Fields 5, n. 2 (31 dicembre 2014): 153. http://dx.doi.org/10.14505/tpref.v5.2(10).03.
Testo completoAbstract (sommario):
In the present study, we attempt to shed light on potential factors affecting how investors react to target price announcements made by security analysts. More specifically, the study focuses on cross-sectional differences between the magnitude of reactions for stocks whose prices have increased and reactions for stocks whose prices decreased immediately prior to such announcements. Employing a sample of target price announcements classified as "buy" (positive) recommendations for Israeli stocks, we document their significantly positive effect on stock prices both on the day of the announcement and during a short period following the announcement. The effect of target price releases is also found to be significantly stronger for smaller stocks. Moreover, we document that those stocks that have experienced positive cumulative abnormal returns prior to target price releases yield significantly higher abnormal returns on average, both on the event day and during a short subsequent period. We explain this finding by the effect of the availability heuristic on investors' perceptions and decisions. Namely, we suggest that investors may expect target price releases to have a stronger effect on stock prices if these releases are preceded by stock returns of the same sign as the recommendation itself (making the recommendation more available, or in other words, subjectively more informative).