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.

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

SHARE PRICE REACTION TO CASH DIVIDEND ANNOUNCEMENT: AN EVENT STUDY OF LISTED FIRMS IN KENYA

2019 ◽  
Vol 9 (1) ◽  
pp. 119-127
Author(s):  
George Gikama Muthoni
Keyword(s):  
Event Study ◽  
Descriptive Analysis ◽  
Joint Effect ◽  
Share Price ◽  
Future Research ◽  
Cash Dividend ◽  
Listed Firms ◽  
Price Reaction ◽  
Descriptive Research ◽  
Study Methodology

This study aimed to establish the effect of cash dividend announcement on share price reaction of the firms listed on the Nairobi Securities Exchange (NSE). This study used Event Study methodology with purely secondary drawn data from 24 firms listed on the NSE who meet the study threshold with an event window of eleven (11) days during the year 2008-2013. The study adopted the descriptive research design and sampling de-sign being purposive. STATA version SE12 was used to produce a descriptive analysis. The findings indicate that the share price reaction to dividend announcement is posi-tive for a dividend increase and negative for dividend decrease and constant for the constant dividend. The study therefore recommends that the effect of the dividend on the firm’s share price is very crucial for not only the literature but also for the regula-tion and supervision of the capital market and that further development of accounting standards, increased auditing skills, and advances in investor education will likely make dividends even more important in the future. Following these findings, it would be useful to also consider the following directions for future research on whether there is any joint effect of cash dividend, bonus issues, and right issues on the share price of firms listed on NSE.

scholarly journals The impact of new, renewal and termination sponsorship announcements on share price returns

2014 ◽  
Vol 15 (4) ◽  
pp. 10-25 ◽  
Author(s):  
Thomas S Kruger ◽  
Michael Goldman ◽  
Mike Ward
Keyword(s):  
Competitive Advantage ◽  
Event Study ◽  
Share Price ◽  
Sports Sponsorship ◽  
Study Methodology ◽  
The Impact ◽  
Event Study Methodology

What impact do sports sponsorship announcements have on the share price returns of sponsoring firms? This research examines the impact of new, renewal and termination sponsorship announcements on returns, employing event study methodology to analyse 118 announcements made by 19 firms over more than 11 years. The mixed findings across all three announcement types indicate the lack of consideration given to sponsorship investment by investors. The findings suggest that, although firms may position their sponsorships so that they contribute towards a competitive advantage, announcements of sports sponsorships are not always taken into account by the market.

scholarly journals The Effectiveness of Trade for Trade Segment as a Surveillance Effort to Prevent Price Manipulation: Evidence from India

2016 ◽  
Vol 6 (1) ◽  
pp. 9
Author(s):  
Kanaiyalal Shantilal Parmar ◽  
Chakrapani Chaturvedula
Keyword(s):  
Stock Returns ◽  
Event Study ◽  
Abnormal Returns ◽  
Stock Exchanges ◽  
Price Reaction ◽  
Price Manipulation ◽  
Surveillance Activity ◽  
Study Methodology ◽  
The Impact ◽  
Event Study Methodology

Indian Stock Exchanges use trade for trade segment as part of surveillance activity to restrict the unwanted growth in prices to safeguard the interest of the investors. This paper studies the impact of the announcement to shift securities to trade for trade segment on stock returns and volatility of the stock returns using event study methodology. It was found that the securities have generated exorbitant positive average abnormal returns during 30 days in the pre event period, which led the exchanges to shift these stocks to trade for trade segment. The event is found to be significantly impacting average abnormal returns during 30 days in the post event period showing the negative price reaction. Also volatility of the stocks returns is found to be increasing post the announcement.

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 Relationship of George Floyd protests to increases in COVID-19 cases using event study methodology

2020 ◽  
Vol 42 (4) ◽  
pp. 696-697
Author(s):  
Randall Valentine ◽  
Dawn Valentine ◽  
Jimmie L Valentine
Keyword(s):  
Event Study ◽  
Infection Rate ◽  
Infection Rates ◽  
Abnormal Growth ◽  
Cdc Guidelines ◽  
Control And Prevention ◽  
Study Methodology ◽  
Relationship Of ◽  
Us Cities ◽  
Event Study Methodology

Abstract Background Protests ignited by the George Floyd incident were examined for any significant impact on COVID-19 infection rates in select US cities. Methods Eight US cities were studied in which protestors in the tens of thousands were reported. Only cities that reside in states whose stay-at-home orders had been rescinded or expired for a minimum of 30 days were included in the sample to account for impact of growth rates solely due to economies reopening. Event study methodology was used with a 30-day estimation period to examine whether growth in COVID-19 infection rates was significant. Results In the eight cities analyzed, all had positive abnormal growth in infection rate. In six of the eight cities, infection rate growth was positive and significant. Conclusions In this study, it was apparent that violations of Centers for Disease Control and Prevention (CDC)-recommended social distancing guidelines caused a significant increase in infection rates. The data suggest that to slow the spread of COVID-19, CDC guidelines must be followed in protest situations.

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