Long-Term Performance of Buybacks in India

2018 ◽  
Vol 19 (6) ◽  
pp. 1554-1566 ◽  
Author(s):  
Jayanta Kumar Seal ◽  
Jasbir Singh Matharu
Keyword(s):  
Event Study ◽  
Stock Exchange ◽  
Study Methodology ◽  
Using Data ◽  
One Year ◽  
Long Term Performance ◽  
Term Performance ◽  
Event Study Methodology

This study tries to find out the post-announcement performance of the buyback firms over the long term in India using data from the Bombay Stock Exchange (BSE). We have chosen the event study methodology and compared the performance for a one-year, a three-year, and a five-year period. The benchmarks chosen are the Sensex, the BSE 500, the size matched firms and the size and industry matched firms. The findings of the study show overperformance by buyback firms when compared to the Sensex and the BSE 500 but no conclusion can be drawn when compared to the size matched firms and size and industry matched firms.

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 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.

Robust Statistical Analysis of Long-Term Performance For Sharia-Compliant Companies in Malaysia Stock Exchange

2017 ◽  
Vol 3 (3) ◽  
pp. 49-66
Author(s):  
Nashirah Abu Bakar ◽  
Sofian Rosbi
Keyword(s):  
Stock Exchange ◽  
Share Price ◽  
Rate Of Return ◽  
Economic Sectors ◽  
Normality Test ◽  
Challenging Situation ◽  
The Right ◽  
Long Term Performance ◽  
Term Performance

In the year of 2016, Malaysia faced with the challenge in instability of economic condition. This situation weakens Malaysian currency that gives direct impact to all economic sectors in Malaysia. Consequently, this situation gives significant impact on the performance of the sharia-compliant companies listed on the Malaysia Stock Exchange. Therefore, this research validates the long-term performance of share price using market adjusted buy and hold return (MABHR). Then, this study performed normality test to check the distribution of data for return and volatility. Next, correlation analysis performed to validate the relationship between return and volatility. The results show that the Solid Automotive Berhad gives the highest rate of return with respect to the market. While UMW Oil & Gas Corporation Berhad shows the lowest rate of return with respect to the market. The finding of this research helps economists to understand the market trend in empirical thinking. In addition, it also helps the investors to understand the market and make the right decision in investing during this challenging situation.

scholarly journals Impact of Layoff Announcements on the Market Value of the Firm

2005 ◽  
Vol 52 (2) ◽  
pp. 364-381 ◽  
Author(s):  
Morley Gunderson ◽  
Anil Verma ◽  
Savita Verma
Keyword(s):  
Event Study ◽  
Stock Exchange ◽  
Market Value ◽  
Negative Response ◽  
Toronto Stock Exchange ◽  
New Information ◽  
Study Methodology ◽  
Almost All ◽  
Event Study Methodology

In this study, we analyze the effect of layoff announcements on the market's valuation of firms. The event study methodology is applied to a sample of 214 announcements of layoffs made by major Canadian firms that traded on the Toronto Stock Exchange over the period 1982-1989. The main results are: (1) The market responds to the news of layoffs in a negative fashion, lowering the value of firms that announce layoffs, and (2) almost all of the negative response occurs on the day of the announcement, suggesting that the market is not able to fully anticipate the new information, but that it responds to it very quickly.

The long-term performance of cross-border mergers and acquisitions

2015 ◽  
Vol 9 (3) ◽  
pp. 385-400 ◽  
Author(s):  
Sai Lan ◽  
Fan Yang ◽  
Hong Zhu
Keyword(s):  
Mergers And Acquisitions ◽  
Developed Countries ◽  
Performance Outcomes ◽  
Chinese Firms ◽  
Content Type ◽  
Cross Border ◽  
Study Methodology ◽  
Long Term Performance ◽  
Term Performance

Purpose – The purpose of this paper is to examine Chinese firms’ long-term value creation derived from cross-border mergers and acquisitions (CBMAs). Design/methodology/approach – The authors collected a sample of 140 CBMAs conducted by Chinese firms listed in Shenzhen and Shanghai stock markets between 1997 and 2010. Long-horizon event study methodology was used to test hypotheses. Findings – The authors find Chinese firms gain long-term value from CBMAs. In particular, the authors find that Chinese firms tend to gain more value from targets from developed countries, and Chinese state-owned firms are more capable of gaining value from CBMAs than Chinese private firms. Originality/value – Given Chinese firms are increasingly acquiring targets outside of China in recent years, it is still unclear about whether Chinese firms gain value from these very expensive cross-border deals. This is one of the first studies that address the question: What are the long-term performance outcomes of Chinese CBMAs in recent years?

scholarly journals Long-term Performance of Nanoparticle Incorporated Eco-friendly Concrete in Natural Seawater Environment

2021 ◽  
Author(s):  
John Philip ◽  
Manu Harilal ◽  
Anandkumar Balakrishnan ◽  
Rani Pongachira George ◽  
Shaju Kattukaran Albert
Keyword(s):  
Order Reduction ◽  
Chloride Content ◽  
Total Biomass ◽  
Natural Seawater ◽  
Free Chloride ◽  
Lower Chloride ◽  
One Year ◽  
Long Term Performance ◽  
Term Performance

Abstract The use of blended concrete has widely gained industrial importance owing to the CO2 gas emissions and carbon footprint resulting from the production of ordinary Portland cement (OPC). Despite the advancements, the deterioration of concrete structures raises a significant threat to their long term durability and service life in aggressive conditions. In this work, the long-term antifouling, strength and durability properties of a blended eco-friendly concrete with OPC, fly ash, nanoparticles, and corrosion inhibitor is evaluated in natural seawater for one year. The biofouling attachment, total viability count (TVC), mechanical strength, alkalinity and free chloride contents were measured and the results were compared with OPC concrete. A four-order reduction in the total biomass and total bacterial density is observed on the surface of the blended concrete. Further, a significantly lower chloride and water penetration depth, free chloride content, compact and smooth surface morphology devoid of cracks and high C-S-H content are observed in blended concrete, compared to the OPC concrete, after exposure in seawater for one year. From the results, it is seen that the blended concrete mix is promising for applications in seawater environments because of its superior biofouling resistance, mechanical properties and durability.

scholarly journals The Impact Of Analysts‟ Recommendations: Evidence From The Athens Stock Exchange

2011 ◽  
Vol 23 (2) ◽  
Author(s):  
Michalis Glezakos ◽  
Anna Merika
Keyword(s):  
Event Study ◽  
Unique Feature ◽  
Stock Exchange ◽  
Point Of View ◽  
Significant Excess ◽  
Investment Opportunities ◽  
Study Methodology ◽  
Athens Stock Exchange ◽  
The Impact ◽  
Event Study Methodology

This study aims to investigate the usefulness of analysts’ recommendations on firms listed on the Athens Stock Exchange (ASE). It contradicts the majority of published works which conclude that analysts’ recommendations do offer valuable investment opportunities. The unique feature of this work is that it sheds light on the issue, adopting a practical approach stemming from the investor’s point of view. It is shown through an event study methodology, that analysts’ recommendations do not result to any significant excess returns.

scholarly journals WILL THE WINNER STILL BE THE WINNER? A STUDY OF EQUITY MUTUAL FUND PERFORMANCE IN INDONESIA

2020 ◽  
Vol 21 (2) ◽  
pp. 566-577
Author(s):  
Budi Frensidy ◽  
Reynardo Nainggolan ◽  
Robiyanto Robiyanto
Keyword(s):  
Mutual Funds ◽  
Mutual Fund ◽  
Time Frame ◽  
Fund Performance ◽  
Equity Mutual Funds ◽  
Stable Performance ◽  
One Year ◽  
Long Term Performance ◽  
Term Performance

In this study, we explore the consistency of Indonesian Rupiah (IDR) – denominated equity mutual funds offered in Indonesia from 2007 to 2017 from various holding periods, namely one year, three years, and five years. Two questions are addressed. Will the winning mutual funds be the winner in the following period? Is the performance of a longer period more persistent than that of the shorter period? Using the nominal return from these eleven years, we find that the equity mutual funds in Indonesia earn no stable performance. The winner will not always be the winner in the following observed period. In addition, no evidence is found that long-term performance would result in a better persistence than that of the shorter time frame.

IPO underpricing and long-term performance in China: the perspective of price limit policy

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yuxin Wang ◽  
Guanying Wang
Keyword(s):  
Initial Public Offering ◽  
Stock Exchange ◽  
Ipo Underpricing ◽  
Content Type ◽  
Price Limit ◽  
Good Policy ◽  
Public Offering ◽  
Long Term Performance ◽  
Term Performance

PurposeThe purpose of this paper is to explore how the price limit policy implemented in 2014 affects initial public offering (IPO) underpricing and long-term performance in China.Design/methodology/approachThe data are the IPOs from Shanghai Stock Exchange (SSE) and Shenzhen Stock Exchange (SZSE) between 2004 and 2018. The data are firstly divided into the IPOs before the price limit policy and the IPOs after the price limit policy according to the time of issuance. Then the two groups are divided into 4 subsamples according to the market blocks and the P/E ratio. The authors use multiple regression models to explore the effect of price limit policy in each subsample.FindingsThe first-day price limit system for IPOs is similar to the upward fuse mechanism, the purpose of which is to suppress IPO underpricing. However, this study finds that the policy does not suppress IPO underpricing, but increases the underpricing rate in all subsamples. Besides, the long-term performance in each subsample is different from each other. Main Board stocks’ long-term performance is worse after the policy. The policy makes Small and Medium Enterprise Board (SME Board) and Growth Enterprise Market Board (GEM Board) stocks with high P/E ratios perform better in the long term. For SME Board and GEM Board stocks with low P/E ratios, the policy makes no significant effect.Practical implicationsGood policy intentions may sometimes lead to counterproductive effects. However, since the long-term performance of each subsample is different, it is difficult to judge whether the policy should continue to be implemented or cancelled. Implementing different policies for different subsamples may be a better way to solve this problem.Originality/valueThis paper contributes to the study of IPO underpricing and long-term performance from the perspective of price limit policy.

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