scholarly journals Impact of Geopolitical Risk on the Information Technology, Communication Services and Consumer Staples Sectors of the S&P 500 Index

2021 ◽  
Vol 14 (11) ◽  
pp. 552
Author(s):  
Gerard Atabong Fossung ◽  
Vasileios Chatzis Vovas ◽  
A. M. M. Shahiduzzaman Quoreshi
Keyword(s):  
Information Technology ◽  
Negative Correlation ◽  
Negative Impact ◽  
Communication Services ◽  
Services Sector ◽  
Technology Sector ◽  
Event Date ◽  
Study Methodology ◽  
The One ◽  
Event Study Methodology

We investigate the effect of geopolitical risk on the returns of firms in the Information Technology, Communication Services, and Consumer Staples sectors within the S&P 500 index. We use the event study methodology and perform more than 17,000 regressions to provide empirical evidence at sector level that geopolitical risk leads to different responses across these three sectors. The response of the Information Technology sector is negative for all event windows under study, except the one spanning 10 days prior to the geopolitical event and 10 days after. The Communication Services sector has positive returns as a result of geopolitical events for all event windows, except the one from the geopolitical event date and 5 days after. The Consumer Staples sector shows a negative impact on geopolitical risk for all event windows except the one from the geopolitical event date and 5 days after, demonstrating a negative correlation to the Communication Services sector.

scholarly journals Does Water, Waste, and Energy Consumption Influence Firm Performance? Panel Data Evidence from S&P 500 Information Technology Sector

2020 ◽  
Vol 17 (14) ◽  
pp. 5206
Author(s):  
Liliana Nicoleta Simionescu ◽  
Ștefan Cristian Gherghina ◽  
Ziad Sheikha ◽  
Hiba Tawil
Keyword(s):  
Information Technology ◽  
Energy Consumption ◽  
Firm Performance ◽  
Panel Data ◽  
Negative Impact ◽  
Total Energy Consumption ◽  
Technology Sector ◽  
Information Technology Sector ◽  
The Impact ◽  
Water Waste

This paper aimed to investigate the impact of water, waste, and energy consumption on firm performance for a sample of enterprises that belong to the S&P 500 Information Technology sector over the period of 2009–2020. The quantitative framework covered both accounting (e.g., return on assets—ROA; return on common equity—ROE; return on capital—ROC; return on invested capital—ROIC) and market-based measures of performance (e.g., price-to-book value—PB), alongside firm and corporate governance specific variables. By estimating multivariate panel data regression models, the empirical results provided support for a negative impact of total water use on PB but a positive effect on ROA. With reference to the total waste, the econometric outcomes revealed a negative influence on the entire selected performance measures, whereas total energy consumption did not reveal any statistically significant influence.

Kursgewinne durch Entlassungspläne? Erste Ergebnisse aus Deutschland

2009 ◽  
Vol 10 (1) ◽  
pp. 1-20 ◽  
Author(s):  
Werner Neus ◽  
Andreas Walter
Keyword(s):  
Decisive Role ◽  
Rate Of Return ◽  
International Evidence ◽  
Abnormal Rate ◽  
Erste Ergebnisse ◽  
German Stock ◽  
Study Methodology ◽  
The One ◽  
German Stock Market ◽  
Event Study Methodology

AbstractEmploying traditional event study methodology we examine the market reaction to layoff announcements of firms listed on the German stock market. We contribute to the international literature in this field with two major results. First, unlike anecdotal and similar to international evidence we report a negative and significant abnormal rate of return of −0.37 percent on the announcement day. Further, we find that the reason for the layoff announcement plays a decisive role in the revaluation process. On the one hand, stocks of firms that announce layoffs as a reaction to declining market conditions are associated with a more intense negative market response. On the other hand, even stocks of firms that intend to enhance their profitability by means of layoffs do not show a significant positive reaction.

scholarly journals Information signaling and ownership transition – value effects of share issue privatizations

2008 ◽  
Vol 6 (1) ◽  
pp. 44-57
Author(s):  
Martin Ahnefeld ◽  
Mark Mietzner ◽  
Tobias Roediger ◽  
Dirk Schiereck
Keyword(s):  
Negative Impact ◽  
Profit Maximization ◽  
Market Model ◽  
Agency Conflicts ◽  
Information Signaling ◽  
Announcement Returns ◽  
Study Methodology ◽  
Secondary Shares ◽  
Offering Size ◽  
Event Study Methodology

Privatizations are commonly associated with an increase in efficiency due to a stronger focus on profit maximization and less agency conflicts because the management does not have to serve political objectives anymore. This paper discusses whether SIPs generate positive announcement returns because of increased efficiency after the ownership transition. We apply a market model event-study methodology based on a sample of 134 SIPs in the 1979-2003 period. We identify significantly negative CAARs between -0.125% and -1.766% and find that firm and offering size, the proportion of secondary shares issued within the SIP as well as the market environment have a negative impact on announcement returns. In contrast, the negative CAARs are less distinctive for enterprises that had prior SIPs

Effects of Introducing Equity-Linked Warrants on Stock Market Behavior

2010 ◽  
Vol 18 (4) ◽  
pp. 23-50
Author(s):  
Doojin Ryu
Keyword(s):  
Stock Price ◽  
Trading Volume ◽  
Informed Trading ◽  
Short Sales ◽  
Short Sale ◽  
Market Completeness ◽  
Announcement Date ◽  
Event Date ◽  
Study Methodology ◽  
Event Study Methodology

This paper investigates the effects of introducing equity-linked warrants (ELWs) on the stock price, trading volume, volatility, and systematic risk (beta) by using the event study methodology. The study defines the event date as the announcement date as well as the listing date. In addition, whereas previous research has investigated only call ELWs, this study analyzes the effects of introducing both call and put ELWs. The results provide no evidence of hedging effects of issuers before the announcement dates and information effects after the announcement dates. In addition, we can't find any significant changes of variables associated with the market completeness hypothesis near the listing dates. However, the trading volume of the stock tends to increase in the days immediately following the listing of call ELWs, which may be due to the “informed trading effect”. The empirical results also provide support for the “diminishing short-sales restrictions” hypothesis related to the listing of put ELWs, which implies that short-sale restrictions can be reduced because put ELWs can provide investors with short positions in the underlying stock.

Impact of Vendor Selection on Firms’ IT Outsourcing

2012 ◽  
Vol 20 (2) ◽  
pp. 25-43 ◽  
Author(s):  
Jae-Seung Han ◽  
Sang-Yong Tom Lee
Keyword(s):  
Information Technology ◽  
Market Value ◽  
It Outsourcing ◽  
Vendor Selection ◽  
The Us ◽  
Key Factor ◽  
Study Methodology ◽  
The Difference ◽  
The Impact ◽  
Event Study Methodology

Information technology (IT) outsourcing is often used as a cost-saving strategy for firms. In IT outsourcing, the choice of vendor is a key factor determining success. This study examines the impact that the choice of IT vendor has on firms’ IT outsourcing in Korea. The authors empirically analyzed the impact of certain characteristics of IT vendors on the market value of client firms in Korea using the event study methodology. First, the authors found that IT outsourcing announcements significantly increased the market value of firms. The authors also found that the market response to high asset-specific services of the IT vendor was significantly greater than the response to low asset-specific services. The authors’ results also showed that the effect of Korean vendors was greater than that of foreign vendors. However, the difference between IT outsourcing to large vendors and small vendors in Korea was not significant, in contrast to the US. The information provided in this study can be used by client firms to select better IT vendors and by IT vendors to develop strategies to survive the rapidly changing IT outsourcing market in Korea.

Stock Market Reactions and Formula One Performance

2011 ◽  
Vol 25 (4) ◽  
pp. 305-313 ◽  
Author(s):  
Klaus Schredelseker ◽  
Fedja Fidahic
Keyword(s):  
Stock Market ◽  
Global Financial Crisis ◽  
Abnormal Returns ◽  
Market Reactions ◽  
Formula One ◽  
Study Methodology ◽  
The One ◽  
The Global Financial Crisis ◽  
Stock Market Reactions ◽  
Event Study Methodology

Due to the global financial crisis, the investments of car manufacturers are going to be revised as never before; especially this is the case for any kind of commitment in sport sponsoring. In Formula One on the one hand costs are exploding, on the other hand money becomes shortened. That is why it becomes interesting to know to what extent a manufacturer’s involvement in this sport is worth it. We use an event study methodology analyzing the stock market response after race performances from 2005 to 2007. Our main results: McLaren- Mercedes and Fiat-Ferrari generate positive abnormal returns after wins for DaimlerChrysler and Fiat, and significantly weaker abnormal returns after losses. Conversely, returns for Renault change in an opposite way.

scholarly journals PELATIHAN PEMANFAATAN TEKNOLOGI INFORMASI PADA MASYARAKAT DI KELURAHAN BELAKANG PADANG KECAMATAN BELAKANG PADANG KOTA BATAM

2021 ◽  
Vol 2 (2) ◽  
pp. 103-112
Author(s):  
Sasa Ani Arnomo ◽  
Yuli Siyamto
Keyword(s):  
Information Technology ◽  
Negative Impact ◽  
Positive Influence ◽  
Economic Activities ◽  
Negative Effects ◽  
Free Markets ◽  
Positive Effects ◽  
Foreign Products ◽  
The One ◽  
Speed Accuracy

The influence of globalization with the support of information technology is a double-edged sword. on the one hand, we cannot deny the benefits and threats it brings on the other. Thus, these benefits are also called positive effects and threats are called negative effects. The positive influence that can be felt by Information Technology is an increase in speed, accuracy and convenience. It provides efficiency in various fields, especially in terms of time, energy and costs. For example, the manifestation of Information Technology that is easily seen around us is email where sending a letter only takes a short time. Information technology is also utilized in the field of economic activities such as E-banking, E-commerce, e-shopping and many more. Meanwhile, the negative impact that may arise as a result of information technology is pornography, while the economic aspect of globalization is the opening of free markets that allow foreign products to enter easily. The large number of foreign products and the addition of relatively cheaper prices can reduce the attractiveness of domestic products. This is a big challenge for SMEs in business competition. Financial fraud and embezzlement through electronic media are also rife so it is necessary to learn how to do business online. With this background, there is a need for guidance on how to deal with developments in information technology. As many as 93% of the responses from the community stated that they were very good and useful.

scholarly journals The Impact of Covid-19 on the Automobile and Allied Sectors

2021 ◽  
Vol 6 (4) ◽  
pp. 20-28
Author(s):  
Manmohan ◽  
Keyword(s):  
Extreme Events ◽  
Extreme Event ◽  
Negative Impact ◽  
Price Impact ◽  
Decision Makers ◽  
Clear Cut ◽  
Study Methodology ◽  
The Impact ◽  
Event Study Methodology

This paper examines the impact of Covid-19 outbreak on the automobile and allied sector. The role of the automobile sector is significant in the overall economy in India. We have used event study methodology to capture the price impact on account of the Covid-19 outbreak. We found that automobile sector and allied sector have witness the negative impact on the event of the pandemic. We have presented the daily and period wise results to provide clear cut understanding about the impact of Covid-19 outbreak on the automobile and allied sectors. This paper contributes in the extreme event literature and help decision makers to hedge their position during the extreme events.

scholarly journals Governmental Announcements and Indian Stock Market: Evidence from Indian Manufacturing Sector

2021 ◽  
Vol 13 (2) ◽  
pp. 135-146
Author(s):  
MAHESH DAHAL ◽  
◽  
JOY DAS ◽  
Keyword(s):  
Stock Market ◽  
Event Study ◽  
Negative Impact ◽  
Manufacturing Sector ◽  
Security Prices ◽  
Study Methodology ◽  
The Government ◽  
Indian Manufacturing Sector ◽  
Indian Stock Market ◽  
Event Study Methodology

The Indian Manufacturing sector lags behind in contributing to economic devel- opment, as compared to its peer nations and therefore, to boost the sectorís contribution to the economy and to transform the economy into a cashless economy, the government of India had announced three major steps, Make in India, Demonetization and GST. In the present study using event study methodology, the immediate impact of the announcements on the stock of the companies from the Indian Manufacturing sector is examined and found that the announcement of the Make in India positively ináuenced the security returns. In contrast, negative impact on the security prices is witnessed on the announcement of Demonetization, whereas the GST implementation has no impact.

High Involvement Work Processes

2018 ◽  
pp. 308-323 ◽  
Author(s):  
Manu Melwin Joy
Keyword(s):  
Information Technology ◽  
Negative Impact ◽  
Questionnaire Data ◽  
Work Processes ◽  
High Involvement ◽  
Technology Sector ◽  
Withdrawal Behaviors ◽  
Software Engineers ◽  
Employee Withdrawal ◽  
The Relationship

The purpose of this chapter is to examine the effect of high involvement work processes on employee withdrawal behaviors in information technology sector in India. It draws from the structured questionnaire data from 300 software engineers working in Infosys, CTS, and HCL. Data was analyzed to find out details related to the relationship between high involvement work processes and employee withdrawal behaviors. It was found that high involvement work processes have a strong negative impact on withdrawal behaviors. The relationship was found to be stronger in the case of work withdrawal behaviors compared to that of job withdrawal behaviors.

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