scholarly journals A study of the market reaction to CEO change

2021 ◽  
Vol 187 (1-2) ◽  
pp. 206-214
Author(s):  
Ali Khazaal Jabbar ◽  
◽  
Hussein Falah Hasan ◽  
Hudaa Nadhim Khalbas ◽  
◽  
...  
Keyword(s):  
Time Series ◽  
Stock Returns ◽  
Cross Sections ◽  
Significant Relationship ◽  
Fixed Effects ◽  
Stock Return ◽  
Stock Exchange ◽  
Panel Regression ◽  
Abnormal Stock Returns ◽  
Available Information

The purpose of this study is to investigate how market reacts to CEO changes and how it may lead to abnormal stock returns. The research is of retrospective character and is based on publicly available information published by listed companies in Tehran Stock Exchange during 2011-2015 taken from a sample of 102 companies. The hypotheses were tested using panel regression with fixed effects for time series and merged effects for cross sections. The results of hypothesis testing showed that there is a negative and significant relationship between CEO change and abnormal stock returns. In other words, it can be argued that at the time of CEO change, stocks are underrated by stockholders, as a result of which the estimated stock return will be lower than expected.

Studying the Effect of Changing the Managing Director on the Abnormal Returns of Shares of Companies Listed on the Iraqi Stock Exchange

2021 ◽  
Vol 39 (11) ◽  
Author(s):  
Hussein Hasan ◽  
Hudaa Nadhim Khalbas ◽  
Farqad Mohammed Bakr AL Saadi
Keyword(s):  
Stock Returns ◽  
Significant Relationship ◽  
Stock Prices ◽  
Market Reaction ◽  
Stock Exchange ◽  
Hypothesis Test ◽  
Abnormal Returns ◽  
The Other ◽  
Other Hand ◽  
Abnormal Stock Returns

The aim of this research is to study the market reaction to the change of the managing director and how this change affects the abnormal returns of the shares. The research is based on the information published by the companies listed on the Iraq Stock Exchange, and 35 companies were selected for the period from 2015 to 2019. The results of the hypothesis test for this study show that there is a negative and significant relationship between the change of the managing director and abnormal stock returns. On the other hand, investors undervalue stock prices when changing CEOs. As a result, the stock returns are less than expected.

scholarly journals Does Financial Performance Matter? Evidence on the Impact of Liquidity and Firm Size on Stock Return in Indonesia

2020 ◽  
Vol 11 (4) ◽  
pp. 546
Author(s):  
Mochammad Chabachib ◽  
Ike Setyaningrum ◽  
Hersugondo Hersugondo ◽  
Intan Shaferi ◽  
Imang Dapit Pamungkas
Keyword(s):  
Stock Returns ◽  
Firm Size ◽  
Significant Relationship ◽  
Stock Return ◽  
Stock Exchange ◽  
Mediating Effect ◽  
Return On Equity ◽  
Stock Investment ◽  
Equity Ratio ◽  
The Impact

In the modern era, stock investment can attract domestic investors or foreign investors. The objective is to invest their funds at the capital market that expect higher stock returns. The study aims to analyze factors that can affect stock returns and know the mediating effect of return on equity. The object of this research is the property and real estate sector that is listed on the Indonesia Stock Exchange from 2013 to 2018. This research used debt to equity ratio, current ratio, total asset turnover, firm size as independent variables and stock returns as dependent variables. Path analysis is used as reseach method tools with SMART PLS.The result says that debt to equity ratio and return on equity has a positive significant relationship with stock return, meanwhile firm size has a significant negative significant relationship with stock returns. Furthermore, return on equity can mediate the relationship between debt and equity ratios to stock returns.

scholarly journals MEKANISME PENGUNGKAPAN EMISI KARBON DAN REAKSI INVESTOR

2019 ◽  
pp. 155
Author(s):  
Chen Kelvin ◽  
Oktavianus Pasoloran ◽  
Fransiskus Randa
Keyword(s):  
Stock Returns ◽  
Stock Return ◽  
Carbon Emission ◽  
Sampling Method ◽  
Stock Exchange ◽  
Negative Relationship ◽  
Cost Of Equity ◽  
Abnormal Stock Returns ◽  
The Cost

This research aims to investigate the role of carbon emission disclosure as a mechanism to improve the investors' reaction in the form of abnormal stock returns mediated by cost of equity. The sample used in this study were non-financial companies listed on the Indonesia Stock Exchange from 2013 to 2017 and 122 firms were selected using purposive sampling method. By using path analysis method, the results shows, that the carbon emission disclosure has negative relationship to the cost of equity, carbon emission disclosure has positive relationship to the abnormal stock return and cost of equity has negative and significant relationship to the abnormal stock return. In addition, using Sobel test, the results shows that cost of equity plays a role in mediating carbon emission disclosure to the abnormal stock returns.

Does Credit Rating Revisions Affect the Price of Common Stock: A Study of Indian Capital Market

2021 ◽  
pp. 227853372110335
Author(s):  
Gaurav Dawar ◽  
Shivangi Bhatia ◽  
Jai Parkash Bindal
Keyword(s):  
Stock Returns ◽  
Capital Market ◽  
Stock Return ◽  
Credit Rating ◽  
Stock Exchange ◽  
Critical Factor ◽  
Event Window ◽  
Share Prices ◽  
Abnormal Stock Returns ◽  
Rating Changes

The current investigation aims to assess the effect of credit assessment changes on the share prices of Indian companies from 2009 to 2019. The data of top 100 companies listed on National Stock Exchange (NSE) across 10 industries stem from CMIE databases. The excess stock return is compared with the market in a 15-day window around credit rating changes. The event effect on share prices is more in the pre-event window compared to the post-event window. Positive abnormal stock returns around upgrades through downgrades are statistically significant compared to upgrades. Credit ratings are not significant across industries, and agency nationality is a critical factor for calculating the intensity of price reaction.

scholarly journals Dinamika Abnormal Return Saham pada Perusahaan Terdaftar di BEI

2018 ◽  
Vol 1 (1) ◽  
pp. 77
Author(s):  
Ganisya Kirana
Keyword(s):  
Positive Affect ◽  
Stock Returns ◽  
Empirical Evidence ◽  
Multiple Regression ◽  
Abnormal Return ◽  
Stock Return ◽  
Stock Exchange ◽  
Independent Variables ◽  
Regression Test ◽  
Abnormal Stock Returns

AbstrakThe purpose of this research was to get empirical evidence about the effect of the issuance of islamic bonds (sukuk) and conventional bonds on the abnormal stock returns. The independent variables used are islamic bonds (sukuk) and conventional bonds. The dependent variable used in this study is the abnormal stock return in observations from 2008-2016.The population in this study are all issue islamic bonds (sukuk) and conventional bonds on the Indonesia stock exchange, those are 13 companies with criterias issuing islamic bond (sukuk) and conventional bonds, this obtained 30 samples used in this study. And the samples are the compaines listed during the period 2008-2014. The sampling is done by purposive sampling.The result showed based on multiple regression test for islmaic bonds (sukuk) and conventional bonds that positive affect the abnormal stock return  Keywords: Islamic bonds (sukuk) conventional bonds, and abnormal stock returns.

scholarly journals Does Corporate Governance Matter in Iran?

2012 ◽  
Author(s):  
Saeed Ghorbani ◽  
Seyed Tabaie Zavareh
Keyword(s):  
Corporate Governance ◽  
Stock Returns ◽  
Significant Relationship ◽  
Stock Return ◽  
Stock Exchange ◽  
Listed Companies ◽  
Governance Index ◽  
The Individual ◽  
The Impact

In this paper, we construct a corporate governance Index (G-index) based on 13 attributes, which are associated with good and bad governance to investigate the impact of corporate governance on a firm’s stock return. After correlating each of the governance attributes of 141 Tehran Stock Exchange listed companies with their performance separately over a period of six years, we find the direction of each attribute’s correlation. After that, we compute the G-index by aggregating the individual attributes and converting each firm’s scores on attribute into the same scale. Finally, these scores are summed up by subtracting negatively correlated attributes from positively correlated attributes for each firm. We find a significantly high correlation between the firm’s performance and firm’s G-index. In the next step, we made three governance-sorted portfolios-from low to high governance-which we use to evaluate stock returns. We find better-governed portfolios significantly outperformed the poorly governed portfolios. We find that corporate governance score really matters in since the results show statistically significant relationship between the qualities of the corporate governance as measured by our G-index and firm’s stock return.  

PENGARUH CURRENT RATIO, RETURN ON EQUITY DAN EARNING PER SHARE TERHADAP RETURN SAHAM PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BURSA EFEK INDONESIA TAHUN 2010 – 2019

2021 ◽  
Vol 5 (1) ◽  
Author(s):  
Susi Lusiana
Keyword(s):  
Data Collection ◽  
Stock Returns ◽  
Stock Return ◽  
Stock Exchange ◽  
Financial Statements ◽  
Financial Ratios ◽  
Manufacturing Companies ◽  
Current Ratio ◽  
Return On Equity ◽  
Earnings Per Share

The study of this research is to determine the effect of returning shares in manufacturing companies. This study uses the financial ratios contained in the company's financial statements. The financial ratios used in this study are the current ratio, return on equity, and earnings per share to stock returns in manufacturing companies listed on the Indonesian stock exchange in 2010-2019. This type of research used in this research is quantitative and the analytical method used is purposive sampling using SPSS 21 as many 10 manufacturing companies in the food, beverage, textile, rubber goods (tires), fisheries, and agriculture sectors. Data collection techniques are used by retrieving data through the website www.idx.co.id. The results showed that Current Ratio (CR) has a positive and significant effect on Stock Returns, Return On Equity (ROE) has a positive and significant effect on Stock Returns, and Earning Per Share (EPS) has a negative and significant effect on Stock Return.

Do Financially Constrained Firms Earn Higher Returns than the Unconstrained Firms? A Comprehensive Evidence from Pakistan Stock Exchange

2020 ◽  
Keyword(s):  
Time Series ◽  
Asset Pricing ◽  
Capital Structure ◽  
Stock Returns ◽  
Financial Constraints ◽  
Stock Exchange ◽  
Cash Flows ◽  
Total Asset ◽  
Cash Holding ◽  
The Relationship

This paper examines the relationship between financial constraints and the stock returns explaining the pricing of stock through financially constrained and unconstrained firms in Pakistan. Three proxies; total assets, tangible to total assets and cash holding to total assets ratios) have been used for financial constraints and the study tried to investigate that either the investors are compensated for taking the extra risk or not in Pakistan Stock Exchange (PSX). We find that the financially constrained firms don’t earn higher returns when their capital structure is heavy with liquid assets and their cash flows are more than the unconstrained firms in PSX. Moreover, the time series results showed that the risk-adjusted returns of the most constrained firms give the mix and somewhat negative and significant and insignificant results for the Pakistani firms listed in PSX sorted based on tangible to total assets and Cash holding to total asset ratios. Keywords: Asset Pricing, Financial constraints, risk-adjusted performance of portfolios

Managers' and auditors' narcissism on the management team's stability and relative corporate performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mahdi Salehi ◽  
Safoura Rouhi ◽  
Mohana Usefi Moghadam ◽  
Faezeh Faramarzi
Keyword(s):  
Significant Relationship ◽  
Fixed Effects ◽  
Corporate Performance ◽  
Stock Exchange ◽  
Relative Performance ◽  
Psychological Characteristics ◽  
Content Type ◽  
The Impact ◽  
The Relationship ◽  
Performance Research

PurposeSuccess in corporate relative performance is one of the factors for the growth and durability of firms. Since the relative performance is a function of managers' decisions and such decisions are under the influence of behavioral and psychological characteristics, this paper aims to assess the managers’ and auditors’ narcissism's effect on the management team's stability relative to corporate performance.Design/methodology/approachThis paper has used the signature magnitude for examining narcissism and the regression model of Jenter and Kanaan (2015) for assessing relative corporate performance. The logistic regression is used to test the model of the management team's stability, and the multivariate regression is used to test the model of relative corporate performance. Research hypotheses were also examined using a sample of 768 listed year-companies on the Tehran Stock Exchange during 2012–2017 and by employing a panel data approach and fixed effects method.FindingsThe obtained results show a negative and significant relationship between managers' and auditors' narcissism and the management team's stability. The relationship between the narcissism of managers and auditors and relative corporate performance is positive and significant. Moreover, managers' narcissism positively and significantly impacts the relationship between auditors' narcissism and team management stability. A negative and significant relationship is evident between auditors’ narcissism and relative corporate performance.Originality/valueThis study's results can identify the effect of psychological components such as narcissism on people's performance by directing and influencing their decisions. Many studies have been conducted on narcissism, but none of them have examined the impact auditors’ and managers' narcissism has on the management team's stability and the corporate relative performance. Therefore, considering the importance of success in the corporate relative performance and benefits of the management team's stability, this study's results can reveal the importance of such features in accounting research. Also, the results of this research can make it important to know more about financial behavioral theory.

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