Impact of Terrorism on KSE 100: Evidence from Karachi

Terrorism is a critical issue throughout the world. In Pakistan, terrorism is one of the major obstacle in the growth of economy. The purpose of the study is to analyze the impact of terrorism in Karachi on the performance of KSE 100. Overall 27 big terrorist activities are considered in four years, ranging from 2011 to 2014. The performance of Karachi stock exchange is measured from the return of KSE 100 index. Moreover, the performance of KSE 100 index against terrorism in Karachi are analyzed through event study methodology and t-test. The result of the study shows that terrorism in Karachi has no significant impact on Karachi stock exchange 100 in all estimation windows. There is a little impact of some pre-event days on post-event days. But overall there is no significant result of terrorism in Karachi on KSE 100. The result highlights that the intensity of terrorist events is an important contributor in signifying the impact of terrorist events on KSE 100 index.

Download Full-text

South–South Cooperation in South and East Asia: An Event Study of the China–Pakistan Economic Corridor

Global Business Review ◽

10.1177/0972150919850415 ◽

2019 ◽

Vol 21 (1) ◽

pp. 54-67

Author(s):

Wing Him Yeung ◽

Yilisha Pang ◽

Asad Aman

Keyword(s):

Stock Market ◽

East Asia ◽

Event Study ◽

Stock Exchange ◽

Global South ◽

Short Term ◽

Empirical Results ◽

Study Methodology ◽

The Impact ◽

Event Study Methodology

South–South cooperation has been on the rise in recent years. One of the latest examples is the China–Pakistan Economic Corridor (CPEC) proposed by the Chinese and Pakistani governments in 2013. Using event study methodology, this article examines the impact of events and announcements associated with CPEC on the Pakistan Stock Exchange in Pakistan and the Shanghai Stock Exchange in China. The first key finding of this article is that the initial announcement associated with CPEC had stronger and positive short-term impact on the Pakistan Stock Exchange in comparison with the impact of subsequent CPEC events on the stock market. The second key finding is that the short-term impact of the CPEC initial announcement was stronger on the Pakistan Stock Exchange than on the Shanghai Stock Exchange, possibly due to the substantial difference in the size of the two economies. The empirical results of this article have important implications for investors, corporations and regulators to the Global South.

Download Full-text

The Impact Of Analysts‟ Recommendations: Evidence From The Athens Stock Exchange

Journal of Applied Business Research (JABR) ◽

10.19030/jabr.v23i2.1403 ◽

2011 ◽

Vol 23 (2) ◽

Cited By ~ 1

Author(s):

Michalis Glezakos ◽

Anna Merika

Keyword(s):

Event Study ◽

Unique Feature ◽

Stock Exchange ◽

Point Of View ◽

Significant Excess ◽

Investment Opportunities ◽

Study Methodology ◽

Athens Stock Exchange ◽

The Impact ◽

Event Study Methodology

This study aims to investigate the usefulness of analysts’ recommendations on firms listed on the Athens Stock Exchange (ASE). It contradicts the majority of published works which conclude that analysts’ recommendations do offer valuable investment opportunities. The unique feature of this work is that it sheds light on the issue, adopting a practical approach stemming from the investor’s point of view. It is shown through an event study methodology, that analysts’ recommendations do not result to any significant excess returns.

Download Full-text

Impact of Demonetization on the Indian Stock Market

Paradigm ◽

10.1177/0971890718788226 ◽

2018 ◽

Vol 22 (2) ◽

pp. 175-184 ◽

Cited By ~ 1

Author(s):

Deepika Upadhyay ◽

Swetha Wenona Suvarna

Keyword(s):

Stock Returns ◽

Event Study ◽

Prime Minister ◽

Stock Exchange ◽

Legal Tender ◽

Important Index ◽

Study Methodology ◽

Indian Stock Market ◽

The Impact ◽

Event Study Methodology

Demonetization is the act of eradicating a currency unit from circulation. Indian economy witnessed this on 8 November 2017 when Prime Minister Narendra Modi announced that the two highest denomination currency notes, that is, ₹500 and ₹1,000 ceased to be legal tender. As most of the transactions in the country are based on cash only, the announcement resulted into huge hue and cry nationwide. It was estimated that approximately 86 per cent of cash was washed off from circulation. The currency notes that were rendered invalid were replaced by the new currency notes of ₹500 and ₹2,000 later. The article intends to investigate the impact of demonetization on the Bombay Stock Exchange (BSE). An event study methodology has been used to analyse the impact of the announcement on its most important index—S&P (Standard & Poor’s) BSE SENSEX index and the 30 top trading stocks which comprise S&P BSE SENSEX. The study period is divided into pre- and post-demonetization announcement. The empirical results indicate that there was no striking impact of the demonetization announcement on the stock returns during the period of the study.

Download Full-text

Information Content of Dividends: Evidence from Istanbul

International Business Research ◽

10.5539/ibr.v3n3p126 ◽

2010 ◽

Vol 3 (3) ◽

pp. 126 ◽

Cited By ~ 8

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.

Download Full-text

Is the market swayed by press releases on corporate governance? Event study on the Eurostoxx banks

Corporate Ownership and Control ◽

10.22495/cocv15i3art2 ◽

2018 ◽

Vol 15 (3) ◽

pp. 23-31 ◽

Cited By ~ 2

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.

Download Full-text

Abnormal Return, Market Reaction around Rating Announcement in Tunisian Stock Market

International Journal of Economics and Finance ◽

10.5539/ijef.v8n7p322 ◽

2016 ◽

Vol 8 (7) ◽

pp. 322

Author(s):

Wissem Daadaa

Keyword(s):

Stock Price ◽

Abnormal Return ◽

Stock Return ◽

Market Reaction ◽

Stock Exchange ◽

Price Change ◽

Study Methodology ◽

Book To Market Ratio ◽

The Impact ◽

Event Study Methodology

This paper tests the market reaction and the stock price change around rating announcements in Tunisian stock exchange using the event study methodology. We examine the impact of the change rating announcement on stock return firms from 2006 to 2010. The results show that only the negative rating with downgrades note which is associated to negative abnormal return. The market does not seem to be interested upgrades rating on the Tunisian market. The negative reaction of the market can be explained by leverage change, Book to Market ratio and the level of the rating fall.

Download Full-text

Impact of Layoff Announcements on the Market Value of the Firm

Relations industrielles ◽

10.7202/051170ar ◽

2005 ◽

Vol 52 (2) ◽

pp. 364-381 ◽

Cited By ~ 11

Author(s):

Morley Gunderson ◽

Anil Verma ◽

Savita Verma

Keyword(s):

Event Study ◽

Stock Exchange ◽

Market Value ◽

Negative Response ◽

Toronto Stock Exchange ◽

New Information ◽

Study Methodology ◽

Almost All ◽

Event Study Methodology

In this study, we analyze the effect of layoff announcements on the market's valuation of firms. The event study methodology is applied to a sample of 214 announcements of layoffs made by major Canadian firms that traded on the Toronto Stock Exchange over the period 1982-1989. The main results are: (1) The market responds to the news of layoffs in a negative fashion, lowering the value of firms that announce layoffs, and (2) almost all of the negative response occurs on the day of the announcement, suggesting that the market is not able to fully anticipate the new information, but that it responds to it very quickly.

Download Full-text

THE COVID-19 PANDEMIC AND INDIAN PHARMACEUTICAL COMPANIES: AN EVENT STUDY ANALYSIS

Buletin Ekonomi Moneter dan Perbankan ◽

10.21098/bemp.v24i0.1483 ◽

2021 ◽

Vol 24 ◽

pp. 1-14

Author(s):

Chinmaya Behera ◽

Badri Narayan Rath

Keyword(s):

Stock Returns ◽

Event Study ◽

Alternative Model ◽

Pharmaceutical Companies ◽

Study Analysis ◽

Pharmaceutical Sector ◽

Firm Level ◽

Study Methodology ◽

The Impact ◽

Event Study Methodology

Although there is a plethora of studies which examine the impact of the COVID-19 pandemic on India’s financial sector, we contribute by investigating the effect of the ongoing COVID-19 pandemic on stock returns of Indian pharmaceutical companies. By employing an event study methodology, our results indicate that the average returns of the pharmaceutical sector are positive during the COVID-19 phase although mixed evidence is found at the firm level. This finding is also robust to alternative model specifications.

Download Full-text

COVID-19’s Impacts on the Kuwaiti Stock Market’s Performance

International Journal of Business and Management ◽

10.5539/ijbm.v16n5p122 ◽

2021 ◽

Vol 16 (5) ◽

pp. 122

Author(s):

Ahmad Al-Kandari ◽

Kholoud Al-Roumi ◽

Meshal K. AlRoomy

Keyword(s):

Real Estate ◽

Stock Returns ◽

Event Study ◽

Consumer Goods ◽

Abnormal Returns ◽

Consumer Services ◽

Study Methodology ◽

Daily Stock Returns ◽

The Impact ◽

Event Study Methodology

This study investigates the impact of COVID-19 pandemic on daily stock returns in Kuwait Stock Market (KSE) over the period from 28 March to 20 April 2020. By applying the event study methodology (ESM) approach, the results reveal that the pandemic has positively impacted stocks of banks, consumer goods and telecommunications sectors. However, oil & gas, real estate, financial, basic materials, industrials, consumer services, and insurance stocks have been negatively impacted by the pandemic. The COVID-19 pandemic's most negatively affected are services and financial stocks. The cumulative average abnormal returns (CAAR) of all sectors were affected negatively by the COVID-19 pandemic.

Download Full-text

Stock Spams: Another Kind Of Stock Prices Manipulation

Journal of Applied Business Research (JABR) ◽

10.19030/jabr.v29i1.7557 ◽

2012 ◽

Vol 29 (1) ◽

pp. 79 ◽

Cited By ~ 7

Author(s):

Taoufik Bouraoui ◽

Mohamed Mehanaoui ◽

Bouchaib Bahli

Keyword(s):

Event Study ◽

Stock Prices ◽

Market Reaction ◽

Font Size ◽

Event Window ◽

Parametric Test ◽

Study Methodology ◽

Penny Stocks ◽

The Impact ◽

Event Study Methodology

This research investigates the market reaction to an information-based manipulation called stock spams. The impact is focused on the liquidity variable which is measured by Amivest ratio. Using the event study methodology on a sample of penny stocks for the period February 2006 through October 2008, our findings suggest positive and significant abnormal liquidities for stocks targeted by manipulators during the event window. Robustness checks were performed using a non-parametric test. These results support the thesis that this kind of manipulation is a very flourishing business that manipulators exploit by simply purchasing stocks at low prices and selling them at higher prices.

Download Full-text