scholarly journals The Long-Run Impact of Information Security Breach Announcements on Investors’ Confidence: The Context of Efficient Market Hypothesis

2021 ◽  
Vol 13 (3) ◽  
pp. 1066
Author(s):  
Syed Emad Azhar Ali ◽  
Fong-Woon Lai ◽  
Rohail Hassan ◽  
Muhammad Kashif Shad
Keyword(s):  
Sustainable Development ◽  
Information Security ◽  
Information And Communication Technologies ◽  
Abnormal Returns ◽  
Efficient Market Hypothesis ◽  
Potential Threat ◽  
Efficient Market ◽  
Equity Risk ◽  
Long Run ◽  
The Impact

Information and communication technologies (ICTs) are the cornerstone for sustainable development, but if they are not appropriately managed, they will impede progress towards the United Nations Global Sustainable Development Goals. Among undesirable impacts, emphasis must be put on the risk of information security (ISec) breaches, as they pose a potential threat to businesses there. Especially for publicly traded firms, they could create a long-lasting influence on their financial performance and, thus, stock investors’ confidence. Following the efficient market hypothesis’s footsteps, previous studies have examined only the short-run impact on investors’ confidence ensuing to ISec breach announcements. Therefore, this study investigates the long-run impact of ISec breach announcements on investors’ confidence. Based on a sample of 73 ISec breach announcements during 2011–2019, this paper examines the impact on investors’ confidence, as demonstrated by long-run abnormal returns and equity risk of those firms. Using a one-to-one matched sampling approach, each firm’s performance is analyzed with its control firm over eighteen months, starting six months before the announcement, through twelve months after the announcement. Firms experienced a significant negative abnormal return of 15% to 18% during the twelve months following the breach announcement. In comparison, equity risk increased by 11% within six months before and after an announcement. This study can help investors, managers, and researchers better understand a long-term relationship between ISec breaches and investor confidence in the context of efficient market hypothesis.

scholarly journals Empirical Testing of the Response of Czech Stock Market to Downgrades of Greek Credit Rating in the Light of the Efficient Market Hypothesis

2018 ◽  
Vol 9 (1) ◽  
pp. 57-71 ◽  
Author(s):  
Petr Seďa ◽  
Juan Antonio Jimber del Río ◽  
María De los Baños García-Moreno García
Keyword(s):  
Stock Market ◽  
Credit Rating ◽  
Statistical Tests ◽  
Abnormal Returns ◽  
Efficient Market Hypothesis ◽  
Empirical Testing ◽  
Efficient Market ◽  
Nonparametric Statistical ◽  
The Impact ◽  
Analytical Approaches

Empirical testing of the linkages between macroeconomic news and asset price movements in terms of response to released macroeconomic information have been a subject of many investigations using different testing methods. The objective of this paper is to study the impact of announcements of Greek credit rating downgrades on the prices of the most liquid assets quoted in the Czech stock market. This issue is tightly related to semi-strong form of the efficient market hypothesis, which is one of possible analytical approaches when analyzing behaviour of assets in financial markets. The reaction of the Czech stock market is assessed in relation to seven announcements of Moody´s rating agency regarding changes of credit rating of Greek government bonds in the period 2009–2012. For the purpose of this paper, the event study methodology is applied. The basic idea of this statistical method is to determine values of abnormal returns, which can be defined as a difference between actual and equilibrium returns. In order to calculate equilibrium returns, the Capital Asset Pricing Model (CAPM) is used. The differences between actual and equilibrium returns are then verified with a help of selected nonparametric statistical tests. Namely, the exact sign test and the Wilcoxon signed-rank test are utilized. Based on results of nonparametric statistical tests, the null hypothesis of information efficiency of the Czech stock market is conclusively rejected.

An Empirical Study on Efficient Market Hypothesis with reference to FMCG Sector

GIS Business ◽  
2020 ◽  
Vol 15 (1) ◽  
pp. 109-126
Author(s):  
Nitin Tanted ◽  
Prashant Mistry
Keyword(s):  
Stock Prices ◽  
Stock Price ◽  
Abnormal Returns ◽  
Weak Form ◽  
Efficient Market Hypothesis ◽  
Controversial Issues ◽  
Efficient Market ◽  
Price Movements ◽  
Run Test ◽  
Stock Price Movements

One of the highly controversial issues in the area of finance is “Efficient Market Hypothesis”. Efficient Market Hypothesis states that, “In an efficient market, all available price information is reflected in the stock prices and it is not possible to generate abnormal returns compared to other investors.” A lot of studies conducted previouslyto test the Efficient Market Hypothesis, confirmed the theory until recent years, when some academicians found it to be non-applicable in financial markets. According to them, it is possible to forecast the stock price movements using Technical Analysis. The results of various studies have been inconclusive and indefinite about the issue. This study attempted to test the efficiency of FMCG Sector stocks in India in its weak form. For the study, closing prices of top 10 stocks from Nifty FMCG index has been taken for the 5-year period ranging from 1st October 2014 to 30th September 2019. Wald-Wolfowitz Run test has been used to test the haphazard movements in the stock price movements. The results indicated that FMCG sector stocks does support the Efficient Market Hypothesis and exhibit efficiency in its weak form. Hence, it is not possible to accurately predict the price movements of these stocks.

Best-value supply chains and firms’ competitive performance: empirical studies of their linkage

2015 ◽  
Vol 35 (12) ◽  
pp. 1688-1709 ◽  
Author(s):  
Xun Li ◽  
Qun Wu ◽  
Clyde W. Holsapple
Keyword(s):  
Supply Chains ◽  
Competitive Advantage ◽  
Empirical Studies ◽  
Abnormal Returns ◽  
Competitive Performance ◽  
Content Type ◽  
Long Run ◽  
Best Value ◽  
Multiple Method ◽  
The Impact

Purpose – Best-value supply chains characterized by agility, adaptability, and alignment, have become a crucial strategic means for firms to create and sustain competitive advantage in today’s turbulent environment. The purpose of this paper is to investigate linkage between best-value supply chains and firms’ competitive performance. Design/methodology/approach – In Study 1, survey data from 76 firms is used to test the impact of the three qualities of best-value supply chains on firms’ competitive performance. In Study 2, to test if a firm’s competitive advantage can be sustained through building best-value supply chains, a long-run performance analysis is conducted, which is based on a stock portfolio of firms identified from the American Marketing Association’s annual list of “Supply Chain Top 25.” Findings – The results of Study 1 indicate that the three qualities of best-value supply chains are positively related to firms’ competitive performance. The results of Study 2 show that firms having best-value supply chains generate significant and positive abnormal returns for shareholders over time. Originality/value – This is a multiple-method research, providing two-level empirical evidence to the investigation of theoretical linkage between best-value supply chains and firms’ competitive performance.

An investigation of time varying market efficiency: evidence from STOXX Europe Christian index

2021 ◽  
Vol 37 (4) ◽  
pp. 631-643
Author(s):  
Tayyaba Yousaf ◽  
Sadia Farooq ◽  
Ahmed Muneeb Mehta
Keyword(s):  
Price Index ◽  
Abnormal Returns ◽  
Weak Form ◽  
Efficient Market Hypothesis ◽  
Time Varying ◽  
Content Type ◽  
Daily Data ◽  
New Information ◽  
Academic Researchers ◽  
The Impact

Purpose The purpose of this study is to investigate whether the STOXX Europe Christian price index (SECI) follows the premise of efficient market hypothesis (EMH). Design/methodology/approach The study used daily data of SECI for the period of 15 years as its launch date i.e. 31 December 2004 to 31 December 2019. Data are analyzed by taking a full-length sample and fixed-length subsample. For subsample, the data are divided into five subsamples of three years each. Subsample analysis is important for analyzing time varying efficiency of the series, as the market is said to follow EMH if it is being efficient throughout the sample. Both type of samples is examined through linear tests including autocorrelations test and variance ratio (VR) test. Findings Tests applied conclude that SECI is weak-form efficient, which means that the prices of the index include all the relevant past information and immediately react to new information. Hence, the investors cannot earn abnormal returns. Originality/value Religion-based indices grasped the attention of investors, policymakers and academic researchers because of increased concern over ethics in business. Though the impact of religion on the economy have been studied in many ways but the efficiency of religion-based indices have been less explored. The current study is primary in its nature as it analysis the efficiency of SECI. This index is important to explore because Christianity is the world’s top religion with 2.3 billion followers around the globe.

scholarly journals Insider Trading and the Classification of Seasoned Equity Offerings: Evidence from Taiwan

2017 ◽  
Vol 9 (5) ◽  
pp. 58 ◽  
Author(s):  
Han-Ching Huang ◽  
Hsiu-Hsin Chiu
Keyword(s):  
Insider Trading ◽  
Abnormal Returns ◽  
Seasoned Equity Offerings ◽  
Growth Potential ◽  
Equity Offerings ◽  
Announcement Effects ◽  
Cumulative Abnormal Returns ◽  
Long Run ◽  
The Impact

This paper investigates whether insider purchasing or selling before Season equity offerings (SEO) announcement have the impact on the cumulative abnormal returns (CAR) around SEO announcement in Taiwan. We find that there are negative announcement effects around the SEO announcement, which is not consistent with the argument that there are usually positive announcement effects around the SEO announcement in Taiwan. Moreover, long-run abnormal returns following SEOs are negative. Therefore, the motivation of SEO has changed from investment to overvaluation.. Although there is net buying prior to SEO announcement, the outside investors still regard SEO announcement as a signal of overvaluation instead of growth potential.

scholarly journals Tools of Information and Communication Technologies in Ecological Marketing under Conditions of Sustainable Development in Industrial Regions (Through Examples of Poland and Ukraine)

2020 ◽  
Vol 13 (10) ◽  
pp. 238
Author(s):  
Aleksandra Kuzior ◽  
Alla Lobanova
Keyword(s):  
Sustainable Development ◽  
Information And Communication Technologies ◽  
Development Strategy ◽  
Communication Technologies ◽  
Life Cycles ◽  
Empirical Observation ◽  
Industrial Enterprises ◽  
Information And Communication ◽  
Industrial Regions ◽  
The Impact

This scientific work analyzes the current state and problems of implementing the concept of sustainable development in industrial regions, in particular, in Poland and Ukraine. Emphasis is placed on slowing down the implementation of the main provisions of this doctrine, in particular, the violation of environmental requirements and non-compliance with ecological standards by industrial enterprises. The aim of the article is to find effective innovative tools for intensifying the process of implementing the strategy of sustainable development in industrial regions. The paper uses theoretical methods—analysis and synthesis, formalization, hypothetical-deductive modeling, mental modeling, systematization and generalization—as well as empirical: observation, description and comparison. The main result of the work is the substantiation of the scientific idea that the implementation of a sustainable development strategy in industrial regions is possible by intensifying the process of ecological marketing through the use of new information and communication technologies (ICT) and their innovative tools—methodologies, digital systems, the Internet, cloud technologies, and systems of product design, manufacture and sale—due to accelerated communication links. The authors’ approach to the development of the mechanism of creation and functioning of the single information space (field) of the ecological marketing of the industrial region is offered in this work, and also, the classification of modern ICT and their tools, which it is expedient to use in this mechanism, is carried out. Their purpose and the expected results from the introduction of ecological products for market research, the development of ecological technologies for the life cycles of ecological products and, thus, the impact on the acceleration of sustainable development in industrial regions are determined.

Information and communication technologies and access to maternal and child health information: Implications for sustainable development

2018 ◽  
Vol 35 (4) ◽  
pp. 524-534 ◽  
Author(s):  
Ngozi B Ukachi ◽  
Stella NI Anasi
Keyword(s):  
Sustainable Development ◽  
Child Health ◽  
Health Information ◽  
Information And Communication Technologies ◽  
Maternal And Child Health ◽  
Positive Impact ◽  
Communication Technologies ◽  
Information And Communication ◽  
The Impact ◽  
And Child Health

Maternal and child mortality pose a great challenge in developing nations notwithstanding the robust initiatives instituted at both the global and national levels to ameliorate it. This study is aimed at ascertaining women’s perception of the impact of information and communication technologies on access to maternal and child health information and its implication on sustainable development. The descriptive research design was adopted for the study. Purposive sampling technique was used in selecting University of Lagos Teaching Hospital and subsequently, the three clinics (Obstetrics and Gynaecology, Paediatrics Outpatient, and Antenatal clinics) where the needed groups could be seen. Questionnaire was the instrument used for data collection while SPSS statistical package was used for data analysis. The study revealed that the women perceive information and communication technologies to have a positive impact on their access to maternal and child health information while the key technological facilities used by the respondents in accessing maternal and child health information were mobile phones and social media tools such as Facebook, YouTube, blogs and Twitter. It was also found that irregular power supply, poor Internet access, and ignorance of the media that transmit maternal and child health information were the key factors that militate against effective access to maternal and child health information using communication technologies. The implication of this result on sustainable development is discussed and recommendations made.

scholarly journals ICT sustainable management: towards a better alignment with the sustainable development strategy

2020 ◽  
Vol 7 (71) ◽  
pp. 165-181
Author(s):  
Rachid Hba ◽  
Mohammed Abdou Janati Idrissi ◽  
Majid Kaissar El Ghaib ◽  
Abdellah El Manouar
Keyword(s):  
Sustainable Development ◽  
Information And Communication Technologies ◽  
Development Strategy ◽  
Sustainable Management ◽  
Management Strategies ◽  
Essential Element ◽  
The Sustainable Development ◽  
Information And Communication ◽  
Innovation Approach ◽  
The Impact

The impact of Information and Communication Technologies (ICT) in terms of Sustainable Development (SD) has led to a great transformation in business management, which positions innovation as an essential element of differentiation for the new market conquest. These ICT, that are particularly adapted, allow creating value for the company in a sustainable way and more aligned with the global SD strategy while ensuring to bring competitive advantage and anticipate new economic, social and environmental problems. To implement an innovation approach that gives organizations the means to develop sustainable management strategies, allowing them to increase overall performance, we proposed the "ICT Sustainable Management" model which is designed according to a Green IT (GIT) and Corporate Social Responsibility (CSR) concepts in order to seek new transition ways for management serving SD. Our model constitutes a first research step to lead reflection on next-generation SD-oriented management models. For this reason, we consider it more appropriate to approve the validity of our model through its application on different categories of companies that use ICT. Analysis of the results of this application test has demonstrated the validity of our model at the scale of five companies. This initial validation will be supported by improvements and new tests that will be extremely useful to improve the model and to advance knowledge in this new field of research.

scholarly journals Sustainable finance initiatives and their impact on financial stability

2020 ◽  
Vol 20 (4) ◽  
pp. 118-133
Author(s):  
Klaudia Zielińska-Lont
Keyword(s):  
Sustainable Development ◽  
Financial Stability ◽  
Financial Sector ◽  
Financial Instruments ◽  
Potential Threat ◽  
Sudden Loss ◽  
Sustainable Finance ◽  
The Subject ◽  
Potential Impact ◽  
The Impact

The article discusses the potential impact of sustainable finance initiatives on financial stability. A careful literature review on the subject of sustainable development and stability of the financial sector is performed in order to identify potential gaps in policies and regulations. Existing considerations around the impact of sustainable development efforts focus exclusively on the consequences of climate change for the portfolio of assets held by the financial sector, whereas the author examines the growing market for sustainable financial instruments as a potential threat. The results indicate that sustainability features of new financial instruments are not methodically evaluated in the context of their credibility and may therefore suffer from sudden loss of value that is not accounted for under the existing supervisory mechanisms. Inconsistent definitions and no single perception of sustainability further enhance the risk for investors and issuers and that risk needs to be accounted for under the mechanisms safeguarding financial stability.

scholarly journals Intangible assets and the efficiency of manufacturing firms in the age of digitalisation: the Russian case

2021 ◽  
Vol 13 (1) ◽  
pp. 7-26
Author(s):  
Yulia Turovets
Keyword(s):  
Information And Communication Technologies ◽  
Intangible Assets ◽  
Developing Economies ◽  
Stochastic Frontier ◽  
Analytical Framework ◽  
Structural Features ◽  
Manufacturing Firms ◽  
High Tech ◽  
Long Run ◽  
The Impact

Abstract A wide consensus exists on the role of intangible assets in both developed and developing economies, especially now, with the new generation of information and communication technologies. Emerging economies generally demonstrate lower endowment with intangibles (Dutz et al., 2012), but follow the same positive patterns for long-run development. In Russia, the contribution of intangibles to growth is still modest, and its capacity to foster productivity has not been achieved. As previous studies showed, efficiency represents one of the main channels of total factor productivity growth. This paper studies the effects of intangibles on the efficiency of Russian manufacturing firms in 2009–2018. Considering the heterogeneity of sectors and firms, the stochastic frontier model is applied. In general, the impact of intangibles is positive but small and influenced by external shocks and structural features. The paper provides evidence on different contributions of intangibles to efficiency for high-tech and low-tech firms and its change over time. It contributes to the strand of literature regarding the technical efficiency measurement on the microlevel. On the practical side, the paper suggests an analytical framework for differentiated policy mechanisms to drive investments in intangibles, which are essential for current digital transformation.

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