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

scholarly journals Will Investors Profit By Following The Stock Recommendations Published In Barrons?

2011 ◽  
Vol 4 (3) ◽  
Author(s):  
Francis Cai ◽  
LianZan Xu
Keyword(s):  
Event Study ◽  
Abnormal Returns ◽  
Market Model ◽  
Stock Recommendations ◽  
Study Methodology ◽  
The Impact ◽  
Event Study Methodology

Barron's is a weekly financial magazine published by Dow Jones. It’s considered America's premier financial weekly. Every week, Barron’s magazine will include a section “Research Reports,” which contains the analysts’ recommendations. Using event study methodology and market model as a benchmark, we calculate abnormal returns to ascertain the impact of the recommendations published in the Research Reports. We find that there are no statistically significant long-term abnormal returns associated with the published recommendations in Barron’s.

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 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 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.

Pyro terrorism in Greece? Greek forest fires August 2007 and the impact on Greek banks stocks

2018 ◽  
Vol 21 (2) ◽  
pp. 163-170 ◽  
Author(s):  
Spyridon Repousis
Keyword(s):  
Event Study ◽  
Forest Fires ◽  
Banking System ◽  
Market Model ◽  
Terrorist Attacks ◽  
Content Type ◽  
Study Methodology ◽  
Greek Banks ◽  
The Impact ◽  
Event Study Methodology

Purpose The purpose of this paper is to examine Greek forest fires in August 2007 and statements about terrorism (pyro-terrorism) and the impact on Greek banks stocks. Design/methodology/approach Event study methodology and market model is used in this paper and data of all Greek bank stocks prices listed in Athens Stock Exchange are analysed, before and after 17 August 2007, which is when forest fires took place in Greece. Findings Total number of burned acres during a seven-year period, 2000-2006, was 2,530,883, and during only August 2007, burned acres accounted to 2,059,615. The former Minister for Public Order, Vyron Polydoras, stated the fires may be a result of terrorist attacks, as many of the fires started simultaneously and in places where an arsonist could not be seen. The Minister also stated that the country is facing an asymmetric threat, a military term used for terrorist attacks. The findings of event study methodology and market model show that CAARs were slightly negative but not statistically significant and during event date, and average abnormal return (AAR) was slightly positive at 0.0273 per cent. The event caused no influence on the stock market. Practical implications Results are important for banking system, compliance and regulatory authorities, justice system and politicians. Originality/value The impact of Greek forest fires in August 2007 on Greek banks stocks has not been examined so far.

scholarly journals Dividend Announcement and Ex-Dividend Effects on Stock Return

2016 ◽  
Vol 8 (7) ◽  
pp. 207
Author(s):  
Dinh Bao Ngoc ◽  
Nguyen Chi Cuong
Keyword(s):  
Event Study ◽  
Stock Price ◽  
Stock Return ◽  
Dividend Policy ◽  
Abnormal Returns ◽  
Listed Companies ◽  
Announcement Date ◽  
Study Methodology ◽  
The Impact ◽  
Event Study Methodology

<p>We study the impact of dividend policy on the stock return by investigating reaction of the stock price on the dividend announcement date and the ex-dividend date.<strong> </strong>In order to achieve this goal, a sample comprising 1962 observations of dividend-related events from 432 listed companies in Vietnam during the period 2008 to 2015 is chosen to analyze and the event study methodology is used to estimate abnormal returns to the shares around the announcement date and the ex-dividend date. Our results clearly show that the effect of dividend announcement on the stock return is positive around the announcement date. In addition, the stock price moves up as long as the ex-dividend date approaches and then starts decreasing from this date onwards.</p>

scholarly journals Examining The Market Reactions To Regulatory Accounting Events

2011 ◽  
Vol 9 (3) ◽  
pp. 36
Author(s):  
Amin Haddad ◽  
Ike Mathur ◽  
Nanda Rangan ◽  
Suresh Tadisina
Keyword(s):  
Event Study ◽  
Accounting Standards ◽  
Market Model ◽  
Proper Treatment ◽  
Estimation Model ◽  
Market Reactions ◽  
Setting Process ◽  
Study Methodology ◽  
Policy Setting ◽  
Event Study Methodology

Evaluation of market reaction to regulatory accounting events such as the accounting standards policy setting process has commonly utilized event study methodology. However, this methodology quite often has resulted in inconsistent and conflicting findings due to partial anticipation of the events being examined and due to nonstationarity of the parameters in the estimation model. A multi-regime market model based methodology that allows for the proper treatment of these problems is proposed and is illustrated with an application in the policy setting process for SFAS No. 8.

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 What does the market say about say-on-pay? A look at the Canadian bank experience

2012 ◽  
Vol 1 (3) ◽  
pp. 142-155 ◽  
Author(s):  
Kim Trottier
Keyword(s):  
Executive Compensation ◽  
Event Study ◽  
Economic Benefits ◽  
Share Price ◽  
Price Reaction ◽  
Say On Pay ◽  
News Announcement ◽  
Study Methodology ◽  
Event Study Methodology

This paper explores the share price reaction to a recent news announcement that Canadian banks were adopting say-on-pay, a policy that gives shareholders an annual non-binding vote on executive compensation. Using event study methodology, the effect of adopting this new policy is explored and found to be associated with a significant increase in share price. This result suggests that giving shareholders a voice on executive compensation is expected to generate economic benefits, which adds to the paucity of knowledge currently available to shareholders and legislators as they consider the consequences of say-on-pay.

International Mutual Fund Performance and Political Risk

2005 ◽  
Vol 08 (01) ◽  
pp. 167-184 ◽  
Author(s):  
Barrie A. Bailey ◽  
Jean L. Heck ◽  
Kathryn A. Wilkens
Keyword(s):  
Mutual Funds ◽  
Event Study ◽  
Mutual Fund ◽  
Abnormal Returns ◽  
Political Risk ◽  
Equity Mutual Funds ◽  
International Equity ◽  
Study Methodology ◽  
The Impact ◽  
Event Study Methodology

Recent years have witnessed phenomenal growth in both the number and size of US based international equity mutual funds. While the benefits of international diversification are well documented in the literature, empirical research relating to the performance of international mutual funds has been limited and contradictory. The purpose of this study is to examine the impact of political risk on the risk-adjusted returns of international mutual funds using a modified event study methodology. More specifically, the dummy variable event study methodology using portfolios rather than individual funds is used. This methodology addresses the problems of multiple event days and calendar clustering. The macro political risk event of interest is the Iraqi invasion of Kuwait. Results of the study suggest that shareholders of international equity mutual funds earn significant abnormal returns in the face of political turmoil.

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