The economic consequences of voluntary environmental reporting on shareholder wealth

2006 ◽  
Vol 3 (2) ◽  
pp. 1 ◽  
Author(s):  
Ruslaina Yusoff ◽  
Shariful Amran Abd Rahman ◽  
Wan Nazihah Wan Mohamed
Keyword(s):  
Abnormal Return ◽  
Listed Companies ◽  
Shareholder Wealth ◽  
Environmental Information ◽  
Economic Consequences ◽  
Share Price ◽  
Cumulative Abnormal Return ◽  
Environmental Reporting ◽  
Financial Report ◽  
Significant Difference

This study was carried out to examine the economic consequences ofvoluntary environmental reporting on shareholders' wealth among Malaysian Listed Companies that voluntarily disclosed environmental information in their financial report. One hundred andfifty two (152) companies of Bursa Malaysia (MSE) had been identified as a sample in the current study. Seventy six (76) companies were classified as environmental reporting companies while the remaining companies were classified as non-environmental reporting companies. The classification was done in order to determine the differences between share price, profitability and market equity for both types of companies. The study hypothesizes that voluntary environmental reporting leads to an improvement in the shareholders wealth. However, the results show that there is no significant difference between cumulative abnormal return for environmental and non-environmental reporting companies. Based on the results obtained, it can also be concluded that profitability and size of the companies do not have any significant roles in deciding whether or not to produce environmental reporting companies.

scholarly journals Can Rumor Clarification Eliminate the Effects of Rumors?

2020 ◽  
Vol 11 (1) ◽  
pp. 48-62 ◽  
Author(s):  
Peinan Ji ◽  
Xiangbin Yan ◽  
Guang Yu
Keyword(s):  
Stock Returns ◽  
Event Study ◽  
Abnormal Return ◽  
Listed Companies ◽  
Cumulative Abnormal Return ◽  
Negative Sample ◽  
The Impact

This article analyzes the effects of rumor and official rumor clarification on Chinese stock returns under different rumor conditions using an event study. The results are based on a sample of 832 rumor clarification announcements from China Listed Companies spanning the period of 2015 to 2017. The results show that the average cumulative abnormal return after the rumor event is significantly positive in the positive rumor sample and neutral sample, and significantly negative in the negative rumor sample. After the clarification announcements, we find the announcements effective for the positive and neutral rumor sample, but not in the case of the negative sample. However, by comparing different clarification times of each sample, we find that the earlier the clarification time is, the smaller the impact on the companies in positive and negative rumor examples.

scholarly journals Investigating Financial Statement Fraud in Ghana Using Beneish M-Score: A Case of Listed Companies on the Ghana Stock Exchange

2020 ◽  
Vol 7 (2) ◽  
pp. 1
Author(s):  
Mike Adu-Gyamfi
Keyword(s):  
Quantitative Research ◽  
Stock Exchange ◽  
Listed Companies ◽  
Share Price ◽  
Company Size ◽  
Earnings Manipulation ◽  
Creative Accounting ◽  
Significant Difference ◽  
Score Model ◽  
Ghana Stock Exchange

This quantitative research was conducted to detect the possibility of earnings manipulation by listed companies on the Ghana Stock Exchange, determine the relationship between company size and earnings manipulation and find out the existence of a correlation between share price and earnings manipulation. Using 22 companies out of a total of 41 listed companies, financial data gathered from published financial statements on the companies’ websites, Ghana Stock Exchange website and Annual Report Ghana website were examined from 2011 to 2016. Applying Beneish M-score model for the period 2011-2016, it was found that 26.2% of the sample size on the average were involved in creative accounting. The study also found that 28.4% of the small companies on the average were involved in earnings manipulation during the period 2011-2016 as compared to 25.4% of the big companies. However, the Mann-Whitney U test conducted revealed that there is no statistically significant difference between the level of earnings manipulation and company size. Spearman’s correlation analysis was conducted, firstly, on the entire sample and separately on the small and big companies. The results of the analysis showed that earnings manipulation and share price, statistically, were not significantly correlated. The quantitative research provides an insight into the level of earnings management amongst listed companies in Ghana and the appropriateness of the M-score model in detecting earnings manipulation. The evidence of incidence of creative accounting amongst the sampled companies is an indication of the need for more stringent measures to curb such practice to ensure the stability of the Ghanaian stock market and protect investor interest.

scholarly journals The Influence of Environmental and Social Performance towards Cumulative Abnormal Returnon Listed Companies in Indonesia Stock Exchange

2018 ◽  
Vol 3 (1) ◽  
pp. 21
Author(s):  
Lilis Nur Indahsari ◽  
Purweni Widhianningrum
Keyword(s):  
Regression Analysis ◽  
Data Analysis ◽  
Abnormal Return ◽  
Quantitative Research ◽  
Stock Exchange ◽  
Social Performance ◽  
Listed Companies ◽  
Sampling Techniques ◽  
Cumulative Abnormal Return ◽  
Analysis Techniques

<span lang="EN-US">This research aims to determine the influence of environmental and social performance against the cumulative abnormal return on listed companies in Indonesia stock exchange. The type of this research is quantitative research. The population in this research are all listed companies in Indonesia stock exchange during the period of the year 2012-2015. Sampling techniques in this research using the technique of purposive sampling, so that obtained the number of samples as much as 11 companies. Data analysis techniques in this study using multiple regression analysis. The results of this research showed that the  environment and social performance have significant impact on the cumulative abnormal return. This indicates that investors are more concerned about social performance because it’s related to the welfare of the community especially employees.</span>

scholarly journals Sector Wise Stock Market Performance during Pre and Post Covid Era

2021 ◽  
Vol 11 (2) ◽  
pp. 200-205
Author(s):  
Dr. Avijit Sikdar
Keyword(s):  
Stock Market ◽  
Capital Market ◽  
Stock Price ◽  
Listed Companies ◽  
Share Price ◽  
Daily Return ◽  
Banking And Finance ◽  
Stock Market Performance ◽  
Significant Difference ◽  
The Usa

The spread of the Covid-19 pandemic has an unprecedented and immense impact on the world economy as well as the Indian economy. The stock market, treated as a barometer of the economic activity of any country is adversely affected. Not even in India, countries like Germany, France, the USA, and Spain have been strongly affected. Nationwide lockdown, restriction on the transportation system, demand-supply disequilibrium lead to slow down in the economy and create a fear factor among the participants of the capital market. Rapid fall in the share price and increased volatility are identified during this period.  The present study tries to compare the stock price return volatility, no of the transaction, and delivery percentage of various listed companies listed on BSE during the pre and post COVID 19 periods to examine the effect of this pandemic on the economy as a whole. Period of Study: In this paper, we have consideredthe pre-covid period from 1st September 2019 to 15th March 2020 and post covid period from 16th March 2020 to August 2020. Sample: for this study, we have selected 50 BSE listed Companies covering 5 sectors, viz. Pharma, Automobile, Industrial Products, Banking and Finance, and Consumer Goods. Statistical Method: We have used paired sample t-test for comparing the arithmetical mean of different capital market parameters for these two sub-periods for each sector separately and standard deviation of daily return as a measure of volatility. Conclusion: From the study, we have observed that average daily share price; average daily return; daily no. of transactions and volatility is significantly different from pre and post covid period for most of the sectors. However, we have not perceived any significant difference in the delivery percentage of traded shares of these sectors between two study periods.

Reaksi Pasar Modal terhadap Peritiwa Pengeboman Gereja di Surabaya

2020 ◽  
Vol 1 (1) ◽  
Author(s):  
Cindy Agustina ◽  
Hadi Sumarsono ◽  
Edi Santoso
Keyword(s):  
Consumer Goods ◽  
Abnormal Return ◽  
Trading Volume ◽  
Abnormal Returns ◽  
Cumulative Abnormal Return ◽  
Manufacturing Companies ◽  
Volume Activity ◽  
Industry Sector ◽  
Significant Difference ◽  
The Church

This study aims to examine the extent of the capital market reaction in the form of cumulative abnormal returns and cumulative trading volume activity from the bombing of the Church in Surabaya 13 May 2018 both in 3 Manufacturing Sectors and as a whole Manufacturing Companies. This study involved 97 Manufacturing companies listed on the IDX. The results showed that there was a significant difference between cumulative abnormal return 2 days before and 2 days after the bombing of the Church in Surabaya May 13, 2018 in the Miscellaneous Industry Sector and Basic and Chemical Industries, while the Consumer Goods Sector there was no significant cumulative abnormal return difference. The results also showed that there was a significant difference between cumulative trading volume activity 2 days before and 2 days after the bombing of the Church in Surabaya May 13, 2018 in the Consumer Goods Sector and the Basic and Chemical Industry Sector, while in the Various Industry Sector there was no difference in cumulative trading significant volume of activity. Meanwhile, the overall Manufacturing Company results showed that there was a significant difference between cumulative abnormal return and cumulative trading volume activity 2 days before and 2 days after the bombing of the Church in Surabaya 13 May 2018.

scholarly journals Capital Market Reaction Against Political Events (Event Study of Demonstration 212 Peaceful Action )

2018 ◽  
Author(s):  
Sri Utami Ady
Keyword(s):  
Stock Returns ◽  
Event Study ◽  
Capital Market ◽  
Stock Price ◽  
Abnormal Return ◽  
Trading Volume ◽  
Share Price ◽  
Stock Trading ◽  
Significant Difference ◽  
Before And After

This study aimed to explain the reaction of the capital market (Event study) 212 demonstrations peaceful protest events against the share price of PT Nippon Indosari Corpindo Tbk on December 2016. The study was conducted at PT Nippon Indosari Corpindo Tbk. As one of the companies affected directly the event. The data used the daily closing stock price data, daily stock trading volume, and the number of outstanding shares obtained from the Indonesia Stock Exchange. By using a t test analysis, there were three hypotheses in this study, namely whether the investor obtain abnormal return to their events (H1), whether there was a difference of abnormal return before and after the event (H2), whether there were differences in the volume of stock trading before and after the event (H3). Results of tests made clear that investors did not earn abnormal return to their peaceful protest demonstration event 212, the results of tests performed also explained that there was no significant difference in abnormal stock returns and trading volume before and after the event. This was because the Indonesian people already familiar with the demonstrations that occurred in the country, so that market participants were more calm in dealing with the situation. The reaction of investors to the event in the Indonesian capital market was quite low indicates the level of efficiency of the Indonesian capital market was still weak

Analisis Perbedaan Abnormal Return Dan Laba Perusahaan Sebelum Dan Sesudah Share Split Atau Reverse Share Split

2012 ◽  
Vol 4 (2) ◽  
pp. 1-23
Author(s):  
Amelinda Timothea Winata ◽  
Rosita Suryaningsih
Keyword(s):  
Abnormal Return ◽  
Sampling Method ◽  
Composite Index ◽  
Secondary Data ◽  
Share Price ◽  
Net Income ◽  
Financial Reports ◽  
Significant Difference ◽  
Before And After ◽  
The Difference

The purpose of this research was to analyze the difference of abnormal return and net income before and after share split or reverse share split. Abnormal return and net income are important to investor because it indicated the corporate performance and useful for investor’s decision making. The samples used in this research were 61 companies for variable of abnormal return and 59 companies for variable of net income. These samples were the companies that listed in Indonesia Share Exchange (IDX) for period 2003-2010 and meet the criteria sampling of this study. The samples were determined based on purposive sampling method. Data that used in this research was secondary data, such as share price, Indonesia Composite Index (ICI), and financial reports. The method used for analysis was paired sample t-test. The results of this research are (1) there is significant difference between abnormal return before and after share split, (2) there is no significant difference between net income before and after share split, (3) there is significant difference between abnormal return before and after reverse share split, and (4) there is no significant difference between net income before and after reverse share split. Keywords: share split, reverse share split, abnormal return, net income.

scholarly journals Profitability, Market Incentive and Audit Quality of Financial Misstatements: Evidence from Malaysian Public Listed Companies (PLCs)

2019 ◽  
Vol 8 (4) ◽  
pp. 2260-2264
Keyword(s):  
Audit Quality ◽  
High Growth ◽  
Audit Fees ◽  
Listed Companies ◽  
Share Price ◽  
Price Ratio ◽  
Audit Risk ◽  
External Auditors ◽  
Significant Difference ◽  
Financial Misstatements

The purpose of this study is to examine whether there is mean difference in profitability (Profit), market incentive (EPrice) and audit quality (AudQ) variables between restatement and non-restatement firms in Malaysia. The sample comprises of 285 public listed companies on the Main Board of Bursa Malaysia for the years between 2005 and 2013. A descriptive statistics analysis is performed to differentiate the characteristics of restatement and non- restatement firms. The study finds significant difference between restatement and non-restatement firms in the profitability and market incentive variables. The results show that restatement firms reported higher profit than non- restatement firms in the year prior to the restatement year. And, restatement firms have higher earnings-to-price ratio (proxy for market incentive) relative to the non-restatement firms that are matched by total assets, but lower than non-restatement firms which not matched by total assets. This indicates that restatement firms are able to maintain high growth expectations embedded in the firm’s share price. The study finds no significant difference in audit quality between misstatement and non-misstatement firms. The comparable audit fees between restatement and non-restatement firms indicate that the external auditors of restatement firms failed to appropriately assess the audit risk of these firms.

scholarly journals BAGAIMANA REAKSI PASAR TERHADAP PERISTIWA AMANDEMEN AKUNTANSI IMBALAN KERJA

2021 ◽  
Vol 15 (1) ◽  
pp. 71-85
Author(s):  
Rahmi Izzati Putri ◽  
Iman Haymawan
Keyword(s):  
Abnormal Return ◽  
Market Reaction ◽  
Stock Exchange ◽  
Research Approach ◽  
Cumulative Abnormal Return ◽  
Test Analysis ◽  
Market Reactions ◽  
Analysis Techniques ◽  
Significant Difference ◽  
Before And After

The purpose of this study is to see the market reaction before and after the event of the work imbalance accounting amendment ratification. This study uses a total of 311 observations of companies listed on the Indonesia Stock Exchange (IDX) during 2013 and uses the Event Study research approach and Paired Sample T-test analysis techniques to test differences in market reactions as indicated by Cumulative Abnormal Return (CAR) before and after. event ratification of the work imbalance accounting amendment. This study found that there was a positive and significant difference in CAR between before and after the event of ratification of the work imbalance accounting amendment. This research has implications for investors to get a picture of the market reaction that occurs as a result of the ratification of the work imbalance accounting amendment. The results of this study indicate that there are differences in market reactions between prior to the ratification of the work imbalance accounting amendment

scholarly journals Pengaruh Political Connection terhadap Cumulative Abnormal Return dan Trading Volume Activity pada Pemilihan Presiden 2019

2021 ◽  
Vol 1 (1) ◽  
pp. 83-95
Author(s):  
Eldam Pradana ◽  
◽  
Sudrajat Sudrajat ◽  
Pigo Nauli ◽  
Yuliansyah Yuliansyah ◽  
...  
Keyword(s):  
Abnormal Return ◽  
Trading Volume ◽  
Quantitative Methods ◽  
General Election ◽  
Political Connection ◽  
Cumulative Abnormal Return ◽  
Volume Activity ◽  
Significant Difference ◽  
Before And After ◽  
The Impact

Abstract Purpose: This study aimed to identify the impact of Political Connection on Cumulative Abnormal Return (CAR) and Trading Volume Activity (TVA) for companies that associate with political figures in the presidential election of 2019. Research methodology: This study used quantitative methods, with a population of 25 companies on the Indonesian stock exchange, through daily stock prices. Result: This investigation showed no significant difference in the Cumulative Abnormal Return between before and after the announcement of the Constitutional Court. Then, there was no significance value on Trading Volume Activity and Cumulative Abnormal Return between before and after the announcement of General Election Commissions. Limitations: In this study, the limitation is observation time which is only 36 days. The number of samples is limited, which only 25 companies with the scope of research of companies that have affiliations with the winners of the 2019 general election. Contribution: This research implicates companies affiliated with politics. This is in the 2019 general election against the winners of the general election in 2019.

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