scholarly journals Valuation Analysis of Initial Public Offer (IPO): The Case of India

Paradigm ◽  
2020 ◽  
Vol 24 (1) ◽  
pp. 7-21
Author(s):  
K. S. Manu ◽  
Chhavi Saini
Keyword(s):  
Event Study ◽  
Fast Moving ◽  
Security Prices ◽  
Short Term ◽  
Ipo Performance ◽  
Short Run ◽  
Study Methodology ◽  
Public Offer ◽  
Event Study Methodology

In today’s fast moving and dynamic world, short-term investors face difficulty while choosing which avenue to invest in. Investors view investment in securities as a highly risky avenue due to VUCA (Volatility, Uncertainty, Complexity and Ambiguity) pertaining to future movement of security prices. The study has been carried out to analyse the post-Initial Public Officer (IPO) performance of various companies that have gone public in 2017 using event study methodology. The study also tries to determine whether these IPOs were underpriced in short run and identifies various factors that influence the movement of such IPOs in the short run. The study found that about 70 per cent of the selected IPOs are underpriced in short run and the movement of these IPOs in short run is not influenced by the age of the company, issue size of the IPO, ownership sector and the promoter’s holdings after the issue.

scholarly journals L’effetto delle operazioni di fusione e acquisizione sui profitti degli azionisti nell’industria farmaceutica

2001 ◽  
Vol 2 (3) ◽  
pp. 163-174
Author(s):  
Grant H. Skrepnek ◽  
Kenneth A. Lawson
Keyword(s):  
Transaction Costs ◽  
Event Study ◽  
Excess Return ◽  
Wealth Effects ◽  
Security Prices ◽  
Short Term ◽  
Target Firm ◽  
Study Methodology ◽  
Event Study Methodology

The purpose of this study was to quantify the excess return in shareholder security prices following initial announcements of successful horizontal pharmaceutical mergers which occurred between 1985 and 1996. An event study methodology was used to study a sample of26 fim1s involved in 14 mergers wherein transaction costs exceeded $500 million. Overall, results of the study were consistent with prior research, indicating that target-firm shareholders received a majority oft he short-term merger-related wealth effects in comparison to those received by bidder- firm shareholders.

scholarly journals South–South Cooperation in South and East Asia: An Event Study of the China–Pakistan Economic Corridor

2019 ◽  
Vol 21 (1) ◽  
pp. 54-67
Author(s):  
Wing Him Yeung ◽  
Yilisha Pang ◽  
Asad Aman
Keyword(s):  
Stock Market ◽  
East Asia ◽  
Event Study ◽  
Stock Exchange ◽  
Global South ◽  
Short Term ◽  
Empirical Results ◽  
Study Methodology ◽  
The Impact ◽  
Event Study Methodology

South–South cooperation has been on the rise in recent years. One of the latest examples is the China–Pakistan Economic Corridor (CPEC) proposed by the Chinese and Pakistani governments in 2013. Using event study methodology, this article examines the impact of events and announcements associated with CPEC on the Pakistan Stock Exchange in Pakistan and the Shanghai Stock Exchange in China. The first key finding of this article is that the initial announcement associated with CPEC had stronger and positive short-term impact on the Pakistan Stock Exchange in comparison with the impact of subsequent CPEC events on the stock market. The second key finding is that the short-term impact of the CPEC initial announcement was stronger on the Pakistan Stock Exchange than on the Shanghai Stock Exchange, possibly due to the substantial difference in the size of the two economies. The empirical results of this article have important implications for investors, corporations and regulators to the Global South.

scholarly journals The Effect of ADR & GDR Listing on Shareholder’s Wealth: Evidence from India

2018 ◽  
Vol 7 (2) ◽  
pp. 174
Author(s):  
Chakrapani Chaturvedula
Keyword(s):  
Event Study ◽  
Short Run ◽  
Study Methodology ◽  
The Impact ◽  
Event Study Methodology

During the period January 2000 to December 2007, seventy nine companies raised capital through the ADR/GDR issues 99 times. This paper looks at the impact of ADR/GDR listing on shareholders wealth. Using an event study methodology and for the sample consisting of 13 ADR and 86 GDR listings the present study finds that ADR/GDR listing negatively effects shareholders wealth. The present study indicates that the potential drawbacks outweigh the benefits in international listing in Indian markets in the short run.

scholarly journals Governmental Announcements and Indian Stock Market: Evidence from Indian Manufacturing Sector

2021 ◽  
Vol 13 (2) ◽  
pp. 135-146
Author(s):  
MAHESH DAHAL ◽  
◽  
JOY DAS ◽  
Keyword(s):  
Stock Market ◽  
Event Study ◽  
Negative Impact ◽  
Manufacturing Sector ◽  
Security Prices ◽  
Study Methodology ◽  
The Government ◽  
Indian Manufacturing Sector ◽  
Indian Stock Market ◽  
Event Study Methodology

The Indian Manufacturing sector lags behind in contributing to economic devel- opment, as compared to its peer nations and therefore, to boost the sectorís contribution to the economy and to transform the economy into a cashless economy, the government of India had announced three major steps, Make in India, Demonetization and GST. In the present study using event study methodology, the immediate impact of the announcements on the stock of the companies from the Indian Manufacturing sector is examined and found that the announcement of the Make in India positively ináuenced the security returns. In contrast, negative impact on the security prices is witnessed on the announcement of Demonetization, whereas the GST implementation has no impact.

Information Content of Dividends: Evidence from Istanbul

2010 ◽  
Vol 3 (3) ◽  
pp. 126 ◽  
Author(s):  
Ayse Altiok-Yilmaz ◽  
Elif Akben Selcuk
Keyword(s):  
Information Content ◽  
Event Study ◽  
Stock Exchange ◽  
Information Leakage ◽  
Istanbul Stock Exchange ◽  
Event Information ◽  
Study Methodology ◽  
Dividend Increases ◽  
Signaling Hypothesis ◽  
Event Study Methodology

This study investigates the market reaction to dividend change announcements at the Istanbul Stock Exchange. A sample of 184 announcements made by 46 companies during the period 2005 to 2008 is analyzed by using the event study methodology. The results suggest that the market reacts positively to dividend increases, negatively to dividend decreases and does not react when dividends are not changed, consistent with the signaling hypothesis. Also, the results show pre-event information leakage for the decreasing dividends sample.

scholarly journals Is the market swayed by press releases on corporate governance? Event study on the Eurostoxx banks

2018 ◽  
Vol 15 (3) ◽  
pp. 23-31 ◽  
Author(s):  
Marina Brogi ◽  
Valentina Lagasio
Keyword(s):  
Corporate Governance ◽  
Event Study ◽  
Stock Prices ◽  
Investment Decisions ◽  
Press Releases ◽  
European Banks ◽  
Study Methodology ◽  
The Impact ◽  
Governance Disclosure ◽  
Event Study Methodology

Are press releases on Corporate Governance price sensitive? What is the impact of Corporate Governance information on stock prices of banks? This paper addresses these questions by applying an event study methodology on 70 press releases published by the Euro area banks listed on the Eurostoxx banks Index, from 2007 to 2016. Systemic shocks are explored as well idiosyncratic ones. Our results show that investment decisions are significantly but negatively influenced by the disclosure of a press release on corporate governance as if this kind of news leads investors to perceive the banks’ prospects negatively. The best of our knowledge this is the first paper that investigates European banks press releases on corporate governance. Findings are relevant for banks’ management and their disclosure policy. Nonetheless, further research is needed to investigate differences and similarities between an area of governance disclosure and another.

scholarly journals Impact of Smoking Ban Fatwa on Indonesian Tobacco’s Company

2013 ◽  
Vol 2 (2) ◽  
pp. 76-86
Author(s):  
Gatot Soepriyanto ◽  
Paulina Santoso
Keyword(s):  
Event Study ◽  
Abnormal Returns ◽  
Tobacco Consumption ◽  
Share Price ◽  
Market Model ◽  
Smoking Ban ◽  
Muslim Population ◽  
Stock Market Return ◽  
Study Methodology ◽  
Event Study Methodology

The objective of this study is to assess the share price reactions to smoking ban fatwa on Indonesia tobacco’s company. We expect that the smoking ban fatwa in the world’s largest Muslim population will hit the tobaccos industry revenues, lower tobacco’s company profit and eventually affect the share price of those firms. We use event study methodology and standard market model to calculate abnormal returns of the tobacco’s firms related to the news of smoking ban fatwa. Our study failed to find a statistically significant effect of smoking ban fatwa on tobacco’s firm stock market return. It suggests that the investors do not see the fatwa as a factor that may control the tobacco consumption in Indonesia – thus it may not affect the tobacco’s firm revenues and profit in the future

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