scholarly journals Information Sharing Alliances in the Airline Industry: An Examination of Code Sharing Agreements

2005 ◽  
Vol 6 (1) ◽  
pp. 85-107
Author(s):  
Wonseok Woo
Keyword(s):  
Information Sharing ◽  
Stock Returns ◽  
Airline Industry ◽  
Shareholder Wealth ◽  
Wealth Effects ◽  
Organizational Information ◽  
Code Sharing ◽  
Study Methodology ◽  
Major Airlines ◽  
Event Study Methodology

This paper addresses the issue of inter-organizational information-sharing alliances and their impacts on firm values from the perspective of inter-organizational coordination between partners in the airline industry setting. We investigate the shareholder wealth effects of inter-organizational information-sharing alliance arrangements, using 131 cede sharing agrc.unems in the airline industry betwcm 1984-1997. Employing event study methodology, we find that the information-sharing alliances between similar partners did create positive value in terms of stock returns at the time of alliance announcements to major US airlines. However, alliances between dissimilar partners resulted in significant losses of shareholder value to the major airlines. These results strongly support our main hypotheses, that information- sharing alliances arc successful and the benefits of such alliances are realized only when coordination difficulties can be effectively dealt with.

scholarly journals Shareholder wealth effects and corporate name change: Evidence from Malaysia

2004 ◽  
Vol 2 (1) ◽  
pp. 38-49 ◽  
Author(s):  
Yusuf Karbhari ◽  
Zulqarnain Mohamad Sori ◽  
Shamsher Mohamad
Keyword(s):  
Abnormal Returns ◽  
Shareholder Wealth ◽  
Wealth Effects ◽  
Name Change ◽  
Announcement Date ◽  
Corporate Name Change ◽  
Study Methodology ◽  
Shareholder Wealth Effect ◽  
Name Changes ◽  
Event Study Methodology

This study seeks to evaluate the shareholder wealth effect of corporate name change by Malaysian listed companies. Our sample comprises both failed and non-failed Malaysian companies and standard event study methodology is employed. Our results indicate that corporate name changes have no impact on shareholder wealth unless the announcement is accompanied with news of approved corporate restructuring by Malaysian regulatory authorities. In addition, extraordinary abnormal returns were found on the announcement day for the failed companies group whilst, the sub-sample of non-failed companies experienced a significant low negative abnormal return around the announcement date indicating disapproval of cosmetic name changes. Investors in Malaysia are generally cautious about receiving news of a corporate name change. The study also suggests that the market cannot be fooled by mere name change; such a change must be backed by serious efforts towards recovery.

Successful Cross-border Acquisitions of Latin American Financial Institutions: Identifying Success Factors

2012 ◽  
Vol 4 (3) ◽  
pp. 347-367 ◽  
Author(s):  
C. Bülent Aybar ◽  
Wendy M. Jeffus ◽  
John C. Edmunds
Keyword(s):  
Latin American ◽  
Financial Institutions ◽  
Success Factors ◽  
Market Access ◽  
Shareholder Wealth ◽  
Wealth Effects ◽  
Cross Sectional ◽  
Foreign Companies ◽  
Study Methodology ◽  
Insight Into

This article examines the shareholder wealth effects for foreign companies that announce acquisitions of financial institutions in Latin America. We examine data for 636 transactions for the period 1985–2009. We employ event study methodology coupled with a cross-sectional regression to determine if shareholders of the acquiring firm receive positive returns. The results indicate that acquirers receive positive returns when the acquisition involves a target bank in a market with low market access, high market risk, and greater control post acquisition. These findings offer improvements on previously examined variables and provide insight into a market not sufficiently examined in prior research.

The 1990 Pennsylvania Antitakeover Law: Should Firms Opt Out of Antitakeover Legislation?

1996 ◽  
Vol 11 (2) ◽  
pp. 223-246 ◽  
Author(s):  
L. Mick Swartz
Keyword(s):  
Stock Returns ◽  
Stock Prices ◽  
Agency Cost ◽  
Opting Out ◽  
Percentage Points ◽  
Opt Out ◽  
Study Methodology ◽  
The Impact ◽  
Econometric Technique ◽  
Event Study Methodology

This paper examines the firm's opting out decision and the impact of the 1990 Pennsylvania Antitakeover Law on the stock prices of 123 firms. The results indicate that on average Pennsylvania stock returns decreased by 9 percent from introduction to passage. A comparison indicates that firms that opted out had CARs 18 percentage points higher than firms that chose not to opt out. The event study methodology may not be appropriate because investors may anticipate the passage of legislation and because there may be multiple events. Intervention analysis, an econometric technique not previously used in this area, is applied and the results support the agency cost hypothesis. A logit model is implemented to find the sources of the losses and gains and to study why firms choose to opt out. In this model, firms are controlled for antitakeover amendments, takeover activity, insider holdings, large noninsider holdings, size, and industry. Firms with a proxy for lower agency costs were found to be more likely to opt out of the legislation.

Pricing Strategy and Corporate Bond Value

2012 ◽  
Vol 3 (3) ◽  
pp. 40-52 ◽  
Author(s):  
Min Shi ◽  
Wei Yu
Keyword(s):  
Financial Markets ◽  
Airline Industry ◽  
Default Risk ◽  
Time Windows ◽  
Corporate Bond ◽  
Pricing Strategy ◽  
Industry Data ◽  
Bond Returns ◽  
Study Methodology ◽  
Event Study Methodology

Pricing strategy is expected to impose profound impacts on a firm’s cash flow and default risk. However, little research has been done to examine its direct impacts on financial markets. Applying event study methodology on the airline industry data, this paper aims to fill this gap by investigating whether and how corporate bond value is affected by pricing cut events in the airline industry in various time windows. The authors’ empirical results find significant positive abnormal bond returns in the announcement month. However, the price effect becomes insignificant and vanishes in the following months. By integrating financial market and marketing behavior analysis, this paper provides managerial insights for both marketing managers and corporate bond investors.

EFFECT OF BONUS ISSUE ON STOCK PRICES OF COMPANIES QUOTED AT THE NAIROBI SECURITIES EXCHANGE

2017 ◽  
Vol 2 (1) ◽  
pp. 1
Author(s):  
Patrick Maina Gachuhi ◽  
Cyrus Iraya
Keyword(s):  
Stock Returns ◽  
Stock Prices ◽  
Abnormal Returns ◽  
Secondary Data ◽  
Market Model ◽  
Expected Returns ◽  
Policy Makers ◽  
Study Methodology ◽  
The Difference ◽  
Event Study Methodology

Purpose: The purpose of this study was to determine the effect of bonus issue on stock prices of companies quoted at the Nairobi securities exchangeMethodology: The study adopted an event study methodology since the study was concerned with the establishment of the information content of bonus issue announcement on share performance at the NSE. The population of this study was 61 companies listed in the NSE. A sample size of 10 listed companies was focused on as there were only 10 companies which had issued bonuses between 2009 and 2012. The study used secondary data to gather information. The collected secondary data was coded and entered into Statistical Package for Social Sciences (SPSS, Version 20) for analysisResults: The study findings revealed that there was a drastic incline from year 2009 to year 2010 followed by a slight decrease in abnormal returns in the following years, Abnormal returns present the difference between the actual returns and the expected returns over a certain period of time. Study findings from the market model indicated that the market return is a good predictor of stock returns.  ANOVA results indicated that abnormal returns after bonus issue were significantly higher than abnormal returns before bonus issue. ANOVA results also indicated that actual stock returns were significantly higher after bonus issue than before the bonus issuePolicy recommendation: The study recommends the NSE to establish and enhance policies for investing so as to attract and encourage large institutional and foreign investors to participate at the NSE. The study also recommends that policy makers and regulators at the NSE are encouraged to encourage more research on the NSE form of efficiency; this will provide a forum for investors to get the information on the form of efficiency of the market and boost their confidence when investing at the NSE

scholarly journals The Effect Of Corporate Name Changes On Shareholder Wealth

2011 ◽  
Vol 4 (3) ◽  
pp. 40 ◽  
Author(s):  
Stephen P. Ferris
Keyword(s):  
Event Study ◽  
Shareholder Wealth ◽  
Managerial Ability ◽  
Name Change ◽  
Investment Opportunities ◽  
Study Methodology ◽  
Name Changes ◽  
Event Study Methodology

This paper analyzes in the Agency-Signaling context of Jensen and Meckling (1976) and Spence (1973) non-merger corporate name changes over 1983-1985. Using an event-study methodology, the results suggest that changes in corporate identities serve in some circumstances as signals to the market of increased operational efficiencies, enhanced investment opportunities and the acquisition of superior managerial ability. The form and frequency of the name change however, was found generally to be insignificant.

scholarly journals A critical evaluation of event study approach using M&A events in the Indian banking industry

2016 ◽  
Vol 13 (3) ◽  
pp. 266-272
Author(s):  
Ullas Rao
Keyword(s):  
Event Study ◽  
Critical Evaluation ◽  
Abnormal Returns ◽  
Wealth Effects ◽  
Wealth Status ◽  
Inherent Limitation ◽  
Study Approach ◽  
Cumulative Abnormal Returns ◽  
Study Methodology ◽  
Event Study Methodology

The present study seeks to critically evaluate the most extensively employed technique – event study methodology, employed to capture the returns generated from M&A events on the wealth status of shareholders. Notwithstanding the popularity of the technique, authors in this paper argue that conceptual bases on which the methodology is founded is flawed. In the light of the extensive limitations attributable to event study methodology, there exists an urgent need to suggest improvement in the conceptual framework of the traditional method capable of lending application to capture the wealth effects of M&A events. The authors believe that application of such a modified approach will be much more salvageable as the results derived therefrom will command greater credibility as well as reliability. In order to highlight the inherent limitation of the event study approach, the authors have used the sample of Indian Banking M&A events retrieved from the M&A data available at etintelligence.com . Given the conceptual flaws of the event study approach, the authors argue that researchers must exercise great caution while commenting on the t-statistic observed for CAR (Cumulative Abnormal Returns) values as the statistical insignificance could be arising more out of the conceptual deficiency of the event study approach than pointing towards the neutral impact of an M&A event on the wealth status of the shareholders.

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 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 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>

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