Divestiture and Its Market Reaction in a Consolidating Industry: The Global Brewing Industry

2021 ◽  
pp. 1-21
Author(s):  
Ludwig Erl ◽  
Florian Kiesel
Keyword(s):  
Mergers And Acquisitions ◽  
Capital Market ◽  
Market Reaction ◽  
Market Performance ◽  
Abnormal Returns ◽  
Brewing Industry ◽  
Efficiency Gains ◽  
Market Values ◽  
Jel Classifications ◽  
The Capital Market

Abstract This study provides a perspective on the market performance of divestitures in the global brewing industry. In 2018, the five largest players accounted for 60% of the global beer volume. We analyze to what extent the capital market values divestitures in an industry where players usually seek efficiency gains and growth through mergers and acquisitions. Based on a sample of 61 divestiture intent announcements in the period from 1999–2018, this study shows that publicly listed brewing groups experience significant positive abnormal returns of about 1.4%. We measure the influential effect of success determinants concerning the underlying industry, the divested business, the divestiture structure, and the divestor itself. (JEL Classifications: G14, G34, L25, Q14)

scholarly journals The Capital Market Reaction To The Corona Covid-19 Virus Outbreak Events

Academia Open ◽  
2021 ◽  
Vol 3 ◽  
Author(s):  
Wardah Azizah ◽  
Nurasik
Keyword(s):  
Capital Market ◽  
Abnormal Return ◽  
Market Reaction ◽  
Stock Exchange ◽  
Abnormal Returns ◽  
T Test ◽  
Paired Sample ◽  
Significant Difference ◽  
Real Picture ◽  
The Capital Market

This study aims to get a real picture of the Capital Market Reaction to the Corona Covid-19 Virus Outbreak (Study on LQ-45 Companies Listed on the Indonesia Stock Exchange). The analytical tool used is descriptive statistical analysis and classical assumption test. To test the hypothesis, it is done using data analysis in the form of Paired Sample T-Test using the statistical program "Product and Service Solution" (SPSS). The results of hypothesis testing using paired sample t-test obtained t-value with a significant value of 0.000 (0.000 <0.05). From these results, it can be stated that the hypothesis is accepted, which means that there is a significant difference in abnormal returns before and after the Corona / Covid-19 Virus Outbreak. The difference in Abnormal Return on the test results has a positive value, this shows that if the Corona / Covid-19 Virus Outbreak has increased, the Abnormal Return value will increase.

THE CAPITAL MARKET REACTION TO LAWSUITS: SOME ADDITIONAL EVIDENCE

1999 ◽  
Vol 9 (1/2) ◽  
pp. 45-58
Author(s):  
Raymond A.K. Cox ◽  
Dwight B. Means
Keyword(s):  
Capital Market ◽  
Market Reaction ◽  
The Capital Market

scholarly journals Capital Market Performance as a Panacea for Economic Growth in Nigeria

2019 ◽  
Vol 13 (2) ◽  
pp. 1
Author(s):  
Akpokerere Othuke Emmanuel ◽  
Okoroyibo Eloho Elizabeth
Keyword(s):  
Economic Growth ◽  
Capital Market ◽  
Stock Exchange ◽  
Market Performance ◽  
Secondary Data ◽  
Least Square ◽  
Ex Post ◽  
Ordinary Least Square Regression ◽  
Market Variables ◽  
The Capital Market

The paper examined capital market performance as a panacea for economic growth in Nigeria from 1986-2016. A number of related literatures have shown that the Nigerian capital market variables studied has satisfactory market performance and has contributed to economic growth. Yet some researchers observed that the capital market has not significantly mobilized and effectively channeled substantial capital to the real sector of the economy. What could have been the reason for the divergences? The study was anchored on the demand following hypothesis. Secondary data were sourced from Central Bank of Nigeria Statistical Bulletin and Nigeria Stock Exchange fact-book of various editions. The paper adopted the ex-post facto research design while ordinary least square regression techniques was used to process the data gathered using E-views 9.0 software. The null hypotheses (Ho) were tested at 5% level of significance. The findings of the paper revealed that there is negative and insignificant relationship between capital market and the variables studied. The paper conclude that liquidity of the capital market is pivotal for economic growth in Nigeria while the study recommended that all tiers of government should be encouraged to fund their realistic long term developmental program through the Nigeria capital market.

scholarly journals PENGUJIAN REAKSI PASAR TERHADAP PERISTIWA MERGER DAN AKUISISI DI BURSA EFEK INDONESIA (BEI)

2017 ◽  
pp. 3325
Author(s):  
Rintohan Malau ◽  
Luh Putu Wiagustini ◽  
Luh Gede Sri Artini
Keyword(s):  
Linear Regression ◽  
Mergers And Acquisitions ◽  
Multiple Linear Regression ◽  
Market Reaction ◽  
Stock Exchange ◽  
Abnormal Returns ◽  
Market Model ◽  
Expected Returns ◽  
Sample Material ◽  
A Company

This study aimed to see whether there abnormal returns around the period of mergers and acquisitions, using a market model and the expected returns of 100 days, as well as using the event period is seven days before and seven days after the announcement of mergers and acquisitions. The sample was a company for mergers and acquisitions in Indonesia Stock Exchange during the years 2013-2015, sampling in this study did not consider the corporate Action others besides mergers and acquisitions alone, so it acquired 30 companies as the sample material, the analysis tools used in this research is multiple linear regression with Level of Singnificance by 5%. The results showed that there were no abnormal returns around the period of the study, so it can be said that there is no market reaction around the announcement of mergers and acquisitions as evidenced by a greater significance than 0.05%. Most likely this is because there is no leakage of information during the period of the study.

scholarly journals Capital Market Returns to New Product Development Success: Informational Effects on Product Market Advertising

2018 ◽  
Vol 56 (1) ◽  
pp. 37-56 ◽  
Author(s):  
Kyung M. Park ◽  
Pradeep K. Chintagunta ◽  
Inho Suk
Keyword(s):  
Product Development ◽  
Stock Returns ◽  
New Product Development ◽  
Capital Market ◽  
Abnormal Returns ◽  
Product Market ◽  
New Product ◽  
Direct To Consumer ◽  
Direct To Consumer Advertising ◽  
The Capital Market

The authors aim to answer the following question: If the capital market reacts with abnormal stock returns to new product development success events, do these returns influence subsequent marketing decisions? Drawing on informational market feedback and managerial learning theories, the authors posit that when firms are uncertain about how responsive the product market will be to their marketing activities, signals received from the capital market help them update their beliefs about the product market’s responsiveness. In the pharmaceutical context, the authors decompose the abnormal returns at a new drug approval event into components that the firm can and cannot predict (i.e., predicted and unpredicted abnormal returns) and find that the postapproval advertising budget is larger when unpredicted abnormal approval returns are higher. Furthermore, this tendency is more pronounced for spending on detailing than for direct-to-consumer advertising. Consistent with these higher budgets, the authors find that postlaunch advertising is more effective when unpredicted abnormal approval returns are higher, particularly for detailing spending (vs. direct-to-consumer advertising). Overall, this study suggests that information flows from the capital market’s initial perceptions at new product introduction play an important role in subsequent marketing decisions in the product market.

The capital market reaction to Central Environmental Protection Inspection: Evidence from China

2021 ◽  
Vol 279 ◽  
pp. 123486 ◽  
Author(s):  
Huixiang Zeng ◽  
Beiyun Dong ◽  
Qiong Zhou ◽  
Youliang Jin
Keyword(s):  
Environmental Protection ◽  
Capital Market ◽  
Market Reaction ◽  
The Capital Market

scholarly journals MEMORY RESPONSE OF CAPITAL MARKET PERFORMANCE TO INTEREST RATES ANNOUNCEMENT: ATHEORETICAL EVIDENCE IN NIGERIA

2021 ◽  
Vol 9 (10) ◽  
pp. 857-866
Author(s):  
Suoye Igoni ◽  
◽  
Peter Onigah ◽  
Valentine Ike Olisekebe ◽  
◽  
...  
Keyword(s):  
Monetary Policy ◽  
Interest Rates ◽  
Capital Market ◽  
Market Performance ◽  
Market Capitalization ◽  
Memory Response ◽  
Distributed Lag ◽  
Market Rate ◽  
Long Run ◽  
The Capital Market

Despite the management of interest rates by the monetary policy authorities over these years, the performance of the capital market has not been impressive in Nigeria. The study analyzed the memory response of the capital market performance to interest rates announcement in Nigeria. The study used monetary policy rate, and deposit market rate as against market capitalization. The study sourced data from the Central Bank of Nigeria Statistical Bulletin between 1985 and 2020. The study adopted the Augmented Dickey-Fuller, and the Autoregressive Distributed Lag for the analysis. The findings showed that, deposit money rate was stationery at levels, while monetary policy rate, and market capitalization were at first differences, and no long run co-integrating equation. The theoretical evidence from the Error correction test findings revealed that, interest rates announcement did not constitute significant variables on the memory of the Nigerian capital market performance. Regular monitory and downward review of interest rates by the Nigerian monetary policy committee were recommended.

scholarly journals Do mergers and acquisitions increase default risk? Evidence from the European market

2019 ◽  
Vol 3 (4) ◽  
pp. 7-51
Author(s):  
Wolfgang Bessler ◽  
Hidde Steenbeek ◽  
Wim Westerman
Keyword(s):  
Mergers And Acquisitions ◽  
Capital Market ◽  
Default Risk ◽  
Risk Model ◽  
Abnormal Returns ◽  
The United States ◽  
Data Set ◽  
Jel Codes ◽  
Valuation Effects ◽  
Potential Risks

Aim: In this study, we examine the changes in default risk of the bidder over the course of a merger or acquisition. The data set consists of 531 deals in which the acquirers are European firms. We employ a general set of determinants to analyse the change in default risk and extend the literature by providing new empirical evidence for the European capital market. Research design: Abnormal returns are analysed to provide preliminary insights into the merger induced valuation effects. All hypothesized relationships on the changes in default risk are tested via a regression analysis. We differentiate these results further by analysing which factors determine the increase in default risk. Findings: Previous research on this issue reported mixed results. The main finding of our empirical analysis is that, on average, mergers and acquisitions of European bidders significantly increase default risk during the post-merger period. Originality: This study adds to the mergers and acquisitions literature for European bidders and targets. The empirical findings suggest that some observed relationships and determinants are different in Europe than in the United States. Implications: This research introduces a default risk model that could be applied to predict bidder performance subsequent to a merger or acquisition by analysing possible changes in default risk of the bidder. It also provides some possible explanations for the average increase in default risk. This study may help practitioners to better assess the potential risks when acquiring other firms. Key words: mergers & acquisitions, abnormal returns, default risk, Europe JEL Codes: G32, G34

Capital Market Response to SFAS Nos. 8 and 52

1993 ◽  
Vol 8 (3) ◽  
pp. 313-329 ◽  
Author(s):  
Zabihollah Rezaee ◽  
R. Phil Malone ◽  
Russell F. Briner
Keyword(s):  
Capital Market ◽  
Foreign Currency ◽  
Market Reaction ◽  
Accounting Standards ◽  
Financial Accounting ◽  
Market Response ◽  
Financial Accounting Standards Board ◽  
Managerial Decisions ◽  
New Information ◽  
The Capital Market

This study investigates the capital market response to Financial Accounting Standards Board (FASB) policy deliberations on foreign currency translations (FCT) by concentrating on five specific events associated with such deliberations. Examining the possible effects of these events, we argue that a market response to FASB policy deliberations on FCT could result from the effects of new information or from the effects of expected changes in managerial decisions. The tests utilized in this paper are designed to detect effects of both types. Generally, no apparent significant market reaction to three of the five events was observed. We found an apparent weak but significant reaction to one event and inconclusive results for a fifth.

scholarly journals Model Pengaruh Kinerja Ekonomi Dan Kinerja Pasar Uang Terhadap Kinerja Bursa Efek Indonesia

2008 ◽  
Vol 1 (1) ◽  
Author(s):  
Efraim Ferdinan Giri
Keyword(s):  
Economic Growth ◽  
Linear Function ◽  
Capital Market ◽  
Market Performance ◽  
Function Model ◽  
Long Run ◽  
Short Run ◽  
Log Linear ◽  
The Impact ◽  
The Capital Market

Based on rule of thumb, economic growth will influence the capital market performance and financial market performance will affect the capital market performance. We use the Error correction model approach to analysis between variable. TARCH approach is employed, based on the ‘identification through heteroscedasticity’ technique, to estimate the impact of a change in the growth and kurs variable to IHSG. This study indicates that economic growth is not affect IHSG statistically significant in the short run, but positive statistically significant in the long run. This study show that increasing in $US exchange rate will lessening capital market performance. Additional analysis in this research shows the linear function model more proper than log-linear function model to predict this relationship.

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