THE PRICE SENSITIVITY OF BUSINESS SERVICE OUTSOURCING ANNOUNCEMENTS BY UK COMPANIES

2003 ◽  
Vol 02 (01) ◽  
pp. 161-180 ◽  
Author(s):  
AHMAD H. JUMA'H ◽  
DOUGLAS WOOD
Keyword(s):  
Stock Returns ◽  
Event Study ◽  
Complete Analysis ◽  
Price Sensitivity ◽  
Business Service ◽  
Excess Returns ◽  
Service Outsourcing ◽  
Study Methodology ◽  
Daily Stock Returns ◽  
Event Study Methodology

This article investigates the market reaction to a sample of announcements of business service outsourcing arrangements made by UK quoted companies between 1991 and 1997. Event study methodology is applied to daily stock returns to measure the reaction, in the form of excess returns, immediately prior to and at the date of an outsourcing contract announcement. The conclusion is that initial announcements tend to enjoy positive and significant reaction and that the larger companies in the sample show a more positive reaction than smaller companies. Overall outsourcing announcements appear to be associated with excess returns but the absence of any recognized basis for disclosure prevents a complete analysis of such events.

scholarly journals COVID-19’s Impacts on the Kuwaiti Stock Market’s Performance

2021 ◽  
Vol 16 (5) ◽  
pp. 122
Author(s):  
Ahmad Al-Kandari ◽  
Kholoud Al-Roumi ◽  
Meshal K. AlRoomy
Keyword(s):  
Real Estate ◽  
Stock Returns ◽  
Event Study ◽  
Consumer Goods ◽  
Abnormal Returns ◽  
Consumer Services ◽  
Study Methodology ◽  
Daily Stock Returns ◽  
The Impact ◽  
Event Study Methodology

This study investigates the impact of COVID-19 pandemic on daily stock returns in Kuwait Stock Market (KSE) over the period from 28 March to 20 April 2020. By applying the event study methodology (ESM) approach, the results reveal that the pandemic has positively impacted stocks of banks, consumer goods and telecommunications sectors. However, oil & gas, real estate, financial, basic materials, industrials, consumer services, and insurance stocks have been negatively impacted by the pandemic. The COVID-19 pandemic's most negatively affected are services and financial stocks. The cumulative average abnormal returns (CAAR) of all sectors were affected negatively by the COVID-19 pandemic.

scholarly journals THE COVID-19 PANDEMIC AND INDIAN PHARMACEUTICAL COMPANIES: AN EVENT STUDY ANALYSIS

2021 ◽  
Vol 24 ◽  
pp. 1-14
Author(s):  
Chinmaya Behera ◽  
Badri Narayan Rath
Keyword(s):  
Stock Returns ◽  
Event Study ◽  
Alternative Model ◽  
Pharmaceutical Companies ◽  
Study Analysis ◽  
Pharmaceutical Sector ◽  
Firm Level ◽  
Study Methodology ◽  
The Impact ◽  
Event Study Methodology

Although there is a plethora of studies which examine the impact of the COVID-19 pandemic on India’s financial sector, we contribute by investigating the effect of the ongoing COVID-19 pandemic on stock returns of Indian pharmaceutical companies. By employing an event study methodology, our results indicate that the average returns of the pharmaceutical sector are positive during the COVID-19 phase although mixed evidence is found at the firm level. This finding is also robust to alternative model specifications.    

scholarly journals NASCAR Sponsorship And Shareholder Return: Some Preliminary Results

2011 ◽  
Vol 5 (8) ◽  
Author(s):  
William L. Huth
Keyword(s):  
Stock Returns ◽  
Event Study ◽  
Financial Market ◽  
Return On Investment ◽  
Marketing Communication ◽  
Communication Tool ◽  
Font Size ◽  
Publicly Traded ◽  
Study Methodology ◽  
Event Study Methodology

<p class="MsoNormal" style="text-align: justify; margin: 0in 34.2pt 0pt 0.5in;"><span style="font-size: 10pt;"><span style="font-family: Times New Roman;">NASCAR sponsorship is a major investment for corporations that choose it as a marketing communication tool. Companies frequently spend in excess of $10 million to sponsor a car in the Nextel Cup series. This paper develops a return on investment measure for that spending using the financial market event study methodology where race day performance influence on publicly traded sponsoring firm&rsquo;s stock returns is examined. Results for the 2005 NASCAR Nextel Cup season suggest that sponsorship of top 5 finishing cars generates significant positive returns for the sponsoring company shareholders.</span></span></p>

THE IMPACT OF ACQUISITIONS ON NEW TECHNOLOGY STOCKS: THE GOOGLE–MOTOROLA CASE

2014 ◽  
Vol 09 (02) ◽  
pp. 1440002 ◽  
Author(s):  
RENFEI GAO ◽  
CINDY S. H. WANG ◽  
CHRISTIAN M. HAFNER
Keyword(s):  
Stock Returns ◽  
New Technology ◽  
Strong Impact ◽  
Excess Returns ◽  
Significant Excess ◽  
Subsequent Performance ◽  
Technology Stocks ◽  
Study Methodology ◽  
The Impact ◽  
Event Study Methodology

This paper analyzes the impact of the recent acquisition of Motorola by Google on the subsequent performance of stock returns using an event study methodology. We obtain empirical results by a two-stage regression, by which the impact of market and industry effects can be controlled for. Our findings suggest that the Motorola takeover led to negative and significant excess returns to Google, but positive and highly significant excess returns to Motorola. Additionally, while the event led to significantly positive excess returns to direct competitors, it did not have a strong impact on indirect competitors, suggesting that the importance of the event was restricted to related industries.

scholarly journals Effects of changes in stock market index composition on stock returns: event study methodology on Zagreb Stock Exchange

2019 ◽  
Vol 5 (1) ◽  
pp. 43-54
Author(s):  
Tihana Škrinjarić
Keyword(s):  
Stock Market ◽  
Stock Returns ◽  
Event Study ◽  
Stock Exchange ◽  
Abnormal Returns ◽  
Stock Market Index ◽  
Market Index ◽  
Study Methodology ◽  
Composition Changes ◽  
Event Study Methodology

AbstractThis paper observes the short-run effects of stock market index composition changes on stock returns on the Zagreb Stock Exchange (ZSE). In that way, event study methodology is employed in order to estimate abnormal returns and compare them amongst three subsets of stocks: those leaving the market index, those entering it, and constantly included stocks. The research included 14 regular and extraordinary revisions of the market index in the period from January 2nd, 2015 until March 21st, 2018. The results have confirmed two research hypotheses: stock exclusions from the market index have a negative effect on stock returns on the ZSE, which is consistent with the price pressure hypothesis; and there exist asymmetric effects of index composition changes on stock returns. This is the first study of this kind on the Croatian stock market, thus more questions need to be answered in future research.

scholarly journals Do trade sale privatizations in Europe create value to shareholders of acquiring firms?

2007 ◽  
Vol 4 (4) ◽  
pp. 262-274
Author(s):  
Felix Zeidler ◽  
Dirk Schiereck
Keyword(s):  
Mergers And Acquisitions ◽  
Stock Returns ◽  
Event Study ◽  
Bargaining Power ◽  
Acquiring Firms ◽  
Announcement Returns ◽  
Abnormal Stock Returns ◽  
European Trade ◽  
Study Methodology ◽  
Event Study Methodology

Many authors have identified zero to negative announcement returns for acquirers in traditional mergers and acquisitions. When purchasing state-owned enterprises as compared to public assets the acquirer faces one particular difference: the distinct characteristics of the seller. The selling government is assumed to lack bargaining power and experience selling off its assets and also often to consider non-economic objectives when privatizing. Furthermore it has a tendency to privilege domestic acquirers. By conducting standard event study methodology and analyzing 90 European trade-sale privatizations we document that acquirers in a privatization context yield significant positive abnormal stock returns

scholarly journals The Effectiveness of Trade for Trade Segment as a Surveillance Effort to Prevent Price Manipulation: Evidence from India

2016 ◽  
Vol 6 (1) ◽  
pp. 9
Author(s):  
Kanaiyalal Shantilal Parmar ◽  
Chakrapani Chaturvedula
Keyword(s):  
Stock Returns ◽  
Event Study ◽  
Abnormal Returns ◽  
Stock Exchanges ◽  
Price Reaction ◽  
Price Manipulation ◽  
Surveillance Activity ◽  
Study Methodology ◽  
The Impact ◽  
Event Study Methodology

Indian Stock Exchanges use trade for trade segment as part of surveillance activity to restrict the unwanted growth in prices to safeguard the interest of the investors. This paper studies the impact of the announcement to shift securities to trade for trade segment on stock returns and volatility of the stock returns using event study methodology. It was found that the securities have generated exorbitant positive average abnormal returns during 30 days in the pre event period, which led the exchanges to shift these stocks to trade for trade segment. The event is found to be significantly impacting average abnormal returns during 30 days in the post event period showing the negative price reaction. Also volatility of the stocks returns is found to be increasing post the announcement.

scholarly journals The Impact of COVID-19 on Stock Returns of the Indian Healthcare and Pharmaceutical Sector

2021 ◽  
Vol 15 (1) ◽  
pp. 5-21
Author(s):  
Shivam Mittal ◽  
Dipasha Sharma
Keyword(s):  
Stock Returns ◽  
Event Study ◽  
Abnormal Returns ◽  
Pharmaceutical Sector ◽  
Event Window ◽  
Study Approach ◽  
Cumulative Abnormal Returns ◽  
Study Methodology ◽  
The Impact ◽  
Event Study Methodology

Increasing COVID-19 cases has not only impacted health and day-to-day lives of people, but it has also had a material effect on India’s economic growth. Stock returns of various sectors are evidence of a country’s stagnated growth but the healthcare and pharmaceutical sector might be affected in a different manner. The purpose of this paper is to find out how has this pandemic has impacted the healthcare and pharma stocks. Daily closing prices of sector specific indexes for 233 days ranging from 15 May 2019 to 24 April 2020 have been taken to compare different sectors with our test sector, on the basis of different criteria. This study has applied the widely used event study methodology on our test sector; calculated abnormal returns, cumulative abnormal returns and also tested their significance. Event study approach suggests that there have been significant abnormal returns and cumulative abnormal returns in our test sector (healthcare and pharmaceutical sector) over the event window, though while comparing it with other sectors through another econometric model, the returns are not statistically significant and do not explicitly indicate the same.

Impact of Demonetization on the Indian Stock Market

Paradigm ◽  
2018 ◽  
Vol 22 (2) ◽  
pp. 175-184 ◽  
Author(s):  
Deepika Upadhyay ◽  
Swetha Wenona Suvarna
Keyword(s):  
Stock Returns ◽  
Event Study ◽  
Prime Minister ◽  
Stock Exchange ◽  
Legal Tender ◽  
Important Index ◽  
Study Methodology ◽  
Indian Stock Market ◽  
The Impact ◽  
Event Study Methodology

Demonetization is the act of eradicating a currency unit from circulation. Indian economy witnessed this on 8 November 2017 when Prime Minister Narendra Modi announced that the two highest denomination currency notes, that is, ₹500 and ₹1,000 ceased to be legal tender. As most of the transactions in the country are based on cash only, the announcement resulted into huge hue and cry nationwide. It was estimated that approximately 86 per cent of cash was washed off from circulation. The currency notes that were rendered invalid were replaced by the new currency notes of ₹500 and ₹2,000 later. The article intends to investigate the impact of demonetization on the Bombay Stock Exchange (BSE). An event study methodology has been used to analyse the impact of the announcement on its most important index—S&P (Standard & Poor’s) BSE SENSEX index and the 30 top trading stocks which comprise S&P BSE SENSEX. The study period is divided into pre- and post-demonetization announcement. The empirical results indicate that there was no striking impact of the demonetization announcement on the stock returns during the period of the study.

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