scholarly journals CAN RAINMAKERS JUSTIFY THEIR PAY? THE ROLE OF INVESTMENT BANKS IN REIT M&AS

2021 ◽  
Vol 25 (4) ◽  
pp. 254-266
Author(s):  
Weiwei Zhang ◽  
Tiezhu Sun ◽  
Patrick Han Lin Goh ◽  
Zilong Wang ◽  
Nick Mansley
Keyword(s):  
Event Study ◽  
Value Creation ◽  
Abnormal Return ◽  
Prima Facie ◽  
Investment Banks ◽  
Cumulative Abnormal Return ◽  
Event Study Method ◽  
Contemporary Practice ◽  
The Prestige

This study explicitly rejects the prima facie proposition that the top-tier investment banks are capable of delivering supernormal value creation to the shareholders of a REIT acquirer in a corporate acquisition. Using the event study method, we find that REIT acquirers advised by market-leading investment banks suffer an average cumulative abnormal return of −4.41% following the M&A announcement, whereas REIT acquirers advised by non-top-tier investment banks only suffer an average cumulative abnormal return of −1.49%. The evidence shows that the contemporary practice of employing investment banks based on the prestige of the advisory firms could potentially result in value-destroying M&As for the REIT acquirers.

scholarly journals Reaksi Pasar Terhadap Pengumuman Pergantian CEO di Bursa Efek Indonesia

2018 ◽  
pp. 2430
Author(s):  
I Kadek Diky Agusnawan ◽  
Dewa Gede Wirama
Keyword(s):  
Event Study ◽  
Chief Executive Officer ◽  
Capital Market ◽  
Abnormal Return ◽  
Abnormal Returns ◽  
Chief Executive ◽  
Ceo Turnover ◽  
Company Performance ◽  
Cumulative Abnormal Return ◽  
Event Study Method

Announcement of CEO turnover indicates a change in company management in order to improve company performance. The purpose of this study is to test whether the capital market reacts to CEO turnover announcements. This study uses event study method and the sample was selected purposively. The research sample consisted of 79 companies listed in the IDX. Based on the results of the analysis it is found that there are no abnormal returns around the CEO turnover announcement. The results shows that there is no information content in the CEO turnover announcement. The results of this study is consistent with the research of Warner et al., (1998) and Setiawan (2008). The results of the study is not consistent with the research of Weisbach (1988), Kang and Shivdasani (1996), Derment-Ferere and Renneboog (2000), Bahtera (2017). Keywords: Chief executive officer, cumulative abnormal return, market reaction

Propping in Business Groups: Prediction Efficacy of Earnings Announcements

2019 ◽  
Vol 20 (4) ◽  
pp. 981-995
Author(s):  
Yogesh Maheshwari ◽  
Pankaj Gupta
Keyword(s):  
Empirical Study ◽  
Event Study ◽  
Abnormal Return ◽  
Business Groups ◽  
Earnings Announcements ◽  
Cumulative Abnormal Return ◽  
Financial Health ◽  
Event Study Method ◽  
Ex Ante ◽  
Positive Effect

This study examines the evidences of propping in business groups in India. The article is an empirical study which adopts the event study method to ascertain the price reaction to the earnings announcement by listed group firms. Results indicate that the earnings announcements are perceived to have a positive effect on the financial health of other firms of the group. The cumulative abnormal return (CAR) of the portfolio of nonannouncing firms in a business group is found to be strongly and positively related with that of the announcing firm of that group. The findings of this article will help investors, shareholders and lenders to ex ante forecast the possible improvement in the financial performance of firms of some business groups which maybe going through tough times presently.

scholarly journals Investor’s Mood at ASIAN Games Event

2019 ◽  
Vol 7 (2) ◽  
pp. 177
Author(s):  
Happy Sista Devy ◽  
Bahrain Pasha Irawan
Keyword(s):  
Event Study ◽  
Abnormal Return ◽  
Sampling Method ◽  
Stock Exchange ◽  
Purposive Sampling ◽  
Event Study Method ◽  
Before And After ◽  
Wait And See ◽  
The Many ◽  
Observation Period

<p>Goals of the research to analyze whether occurred abnormal return of ASIAN Games phenomena and see how investors react to the big ASIAN Games 2018 event in Indonesia. . This reseach uses a sample of companies included in the hotel, restaurant and tourism sub-sector on the Indonesia Stock Exchange (IDX) during the observation period, based on the purposive sampling method which obtained 22 companies and used the event study method. There is a significant abnormal return but not on the phenomenon of the Asian Games 2018. This shows that investors still wait and see to the organization of the Asian Games in 2018. No difference of abnormal return before and after the Asian Games 2018. This is because, as investors look to the many tourists who have started to flock to Indonesia before the Asian Games in 2018 took place.<em></em></p><p><strong><em></em></strong><em><br /></em></p>

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 EFISIENSI PASAR SAHAM SYARIAH DI INDONESIA BERDASARKAN PENGUMUMAN PERUBAHAN KOMPOSISI SAHAMDI JAKARTA ISLAMIC INDEX (JII)

2015 ◽  
Vol 2 (1) ◽  
pp. 95
Author(s):  
Mas Nur Mukmin ◽  
Hermi Hermi
Keyword(s):  
Market Efficiency ◽  
Information Content ◽  
Event Study ◽  
Abnormal Return ◽  
Stock Exchange ◽  
Strong Form ◽  
Research Use ◽  
Composition Change ◽  
Efficient Market ◽  
Event Study Method

<p><em>This research is aim to figure out the information content and market efficiency of syariah stock exchange in Indonesia based on the announcement of the change of stock composition in Jakarta Islamic Index (JII). This research is addressed to the included and excluded stocks. This research use event study method. The window event last for seven days (t-3 to t+3).The result support signalling theory. There’s no abnormal return around the window event for the included stocks. Negative abnormal return exist for the excluded stocks. The result also showed that JII is an efficient market in a semi-strong form based on the announcement of the JII stock composition change.</em></p>

scholarly journals Reaksi Pasar atas Pengumuman Dividen: Sebuah Tinjauan Ulang

Performance ◽  
2020 ◽  
Vol 27 (2) ◽  
pp. 23
Author(s):  
Fransisca Astuti Mutiara ◽  
Leo Indra Wardhana
Keyword(s):  
Event Study ◽  
Abnormal Return ◽  
Stock Exchange ◽  
Statistical Tests ◽  
T Test ◽  
The Other ◽  
Market Reactions ◽  
Dividend Payment ◽  
Event Study Method ◽  
Dividend Announcements

This study revisits the market reactions on the dividend payment events, cum-dividend date and payment date, using the event study method. The sample of this study includes all dividend announcements from 2017 to 2018 in the Indonesia Stock Exchange. This study performs various robust statistical tests proposed by Harrington and Shrider (2007), who point out that standard classical t-test is not enough to ensure abnormal return on an event because of the bias due to volatility caused by an event. Using various statistical tests for testing the abnormal return, this study shows that the market indeed reacts to the cum-dividend date and dividend payment date, as well as showing that the classical t-test showing the same conclusion as the other tests.    

scholarly journals Impacts of Unusual Market Activity Announcement on Stock Return: Evidence from The Ace Market in Malaysia

2019 ◽  
Vol 11 (2) ◽  
pp. 169
Author(s):  
Dylan Siong-Yain Chen ◽  
Venus Khim-Sen Liew
Keyword(s):  
Event Study ◽  
Abnormal Return ◽  
Stock Return ◽  
Cumulative Abnormal Return ◽  
Market Activity ◽  
Average Abnormal Return ◽  
Study Methodology ◽  
Event Study Methodology

This study examines the effect of Unusual Market Activity (UMA) announcement on stock return in Malaysian market with a sample of 62 companies listed on the ACE market at Bursa Malaysia for the period of 2007-2015. This study employs event study methodology to show that there were few days in which the average abnormal return (AAR) and cumulative average abnormal return (CAAR) are statistically significant. In addition, this study also further investigates the abnormal return (AR) and cumulative abnormal return (CAR) for individual companies. It was found that majority of the stocks returns fell significantly 30 days after the UMA announcement. The magnitude of the fall in returns ranges from 4% to 234%. Hence, it is not advisable for investors to buy stock after UMA announcement.

scholarly journals Pengaruh Penerbitan Obligasi Syariah Terhadap Return Saham (Studi Kasus Pada Perusahaan Yang Menerbitkan Obligasi Syariah dan Terdaftar Pada Bursa Efek Indonesia (BEI)

2020 ◽  
Vol 1 (2) ◽  
pp. 1-10
Author(s):  
Mutia Dwiana
Keyword(s):  
Stock Returns ◽  
Event Study ◽  
Abnormal Return ◽  
Sampling Technique ◽  
Observation Time ◽  
T Test ◽  
Average Abnormal Return ◽  
Significant Difference ◽  
Event Study Method ◽  
Before And After

This type of research is quantitative, this research is conducted on companies that issue Islamic bonds and are listed at the Bursa Efek Indonesia (BEI). The method used is the event study method to show whether there is an effect of the issuance of Islamic bonds on stock returns in the event period of the issuance of Islamic bonds (sukuk), with a length of observation time of 15 days before and 15 days after the issuance event. The population used is companies that issue Islamic bonds that are still circulating as of February 2020. The sample was determined by purposive sampling technique and a sample of 15 incidents of Islamic bond issuance was obtained from 8 companies. Then the data is processed using t-test and paried sample t-test. The results showed that there was a significant Average Abnormal Return around the Islamic bond issuance period, which means that the issuance of Islamic bonds (sukuk) had an effect on stock returns. And there is also a significant difference in stock returns between before and after the issuance of Islamic bonds.

scholarly journals Dampak Devaluasi Yuan Pada 11 Agustus 2015 Terhadap Abnormal Return Dan Abnormal Trading Volume Activity Saham Yang Tercatat Di Jakarta Islamic Index JII)

2017 ◽  
Vol 3 (2) ◽  
pp. 127
Author(s):  
Windiya Saputri ◽  
Leo Herlambang
Keyword(s):  
Event Study ◽  
Capital Market ◽  
Abnormal Return ◽  
Trading Volume ◽  
T Test ◽  
Volume Activity ◽  
Paired Sample ◽  
Study Results ◽  
Event Study Method ◽  
Abnormal Trading Volume

Government-related announcement is one of the determinants that potentially affect capital market. This research aims to see the reaction of stock market to Yuan Devaluation on August, 11 2015. The market reaction in this study is indicated by the presence of abnormal retun and abnormal trading volume activty. The approach taken in this research is the quantitative approach with event study method by using one sample t-test and paired sample t-test analysist. The variables in this research are Yuan Devaluation, AAR, and AATVA. The issuers observed in this research are stock listed on JII during the period of study. Results showed that stock listed on JII reacted to Yuan Devaluation, that is showed by significant results both in the AAR and AATVA, which means Yuan Devaluation bears valuable information for investor.

scholarly journals The Effect of Put Option Issuing on Risk Adjusted Return

2016 ◽  
Vol 8 (4) ◽  
pp. 11
Author(s):  
Seyed Jalal Sadeqi Sharif ◽  
Ebrahim Joshan ◽  
Marjan Orouji
Keyword(s):  
Event Study ◽  
Capital Market ◽  
Abnormal Return ◽  
Stock Exchange ◽  
Significant Relation ◽  
Stock Liquidity ◽  
Company Stock ◽  
Put Option ◽  
Event Study Method ◽  
Option Volume

<p>This research investigates the relation between put option issuing and risk adjusted return in Iran capital market for the period 2002-2016. Because data were not available before 2002, data from the period 2002 to 2016 were studied. All data gathered from Tehran Stock Exchange database the sample include 36 issuing events. The Event Study method was implied for 5 days. The empirical result shows that there is a significant relation between issuing options and abnormal return for the company stock, furthermore there is an approved relation between that abnormal return and stock liquidity, but the relation between option volume and that rerun was not approved.</p>

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