Stock Market's Reactions to Industrial Accidents

2014 ◽  
Vol 1 (2) ◽  
pp. 18-33 ◽  
Author(s):  
Jiuchang Wei ◽  
Han Wang ◽  
Xiumei Guo
Keyword(s):  
Stock Market ◽  
Event Study ◽  
Stock Markets ◽  
Market Reaction ◽  
Listed Companies ◽  
Negative Reaction ◽  
Industrial Accidents ◽  
Bear Market ◽  
Event Study Method

This study attempts to explore whether and how stock market responds to industrial accidents. We employ the event study method to look into the responses of stock markets to 83 accidents experienced by various listed companies in China, and explore how industrial accidents influence stock market in the different markets. Findings imply that the stock market shows negative reaction with respect to these accidents. However, as time goes by, the market reaction tapers off. In the bear market, the negative market reaction was highly significant. Small-sized companies, in comparison with other companies, have a most significant reaction to accidents and they also have the worst ability to recover from accidents. The findings of this study can help the investors to better understand how the stock market reacts to the industrial accidents in different market environments and under other conditions.

Reaksi Pasar Dalam Bentuk Return Sebelum, Selama, dan Sesudah Peristiwa Piala Dunia Tahun 2014 pada Pasar Modal Asean

2015 ◽  
Vol 2 (02) ◽  
pp. 229-237
Author(s):  
Ratih Pratiwi ◽  
Muhammad Yusuf
Keyword(s):  
Data Analysis ◽  
Stock Market ◽  
Stock Markets ◽  
Quantitative Data ◽  
Market Reaction ◽  
Jel Classification ◽  
T Test ◽  
World Cup ◽  
Data Analysis Technique ◽  
Analysis Technique

A B S T R A C T Investor realized that the stock market gradually decreased during World Cup.The research aimed to analyze the return of market reaction which happenned before, during, and after World Cup 2014 on ASEAN stock market. The sample involved 181 companies were included in LQ-45, STI, FTSE BM KLCI, SET 50, PSEI index, which fulfilled the reseach criteria. The data analysis technique used was one sampel t-test with quantitative data. Based on the result, can be concluded that Indonesia and Thailand stock markets were higly effected by World Cup. A B S T R A K Investor mengetahui bahwa setiap piala dunia berlangsung, pergerakan saham melambat. Hal tersebut terbukti dengan terjadi penurunan return saham di pasar modal. Penelitian ini bertujuan untuk menganalisa reaksi pasar dalam bentuk return terjadi sebelum, selama dan sesudah piala dunia tahun 2014 pada pasar modal ASEAN. Sampel yang digunakan dalam penelitian ini sebanyak 181 perusahaan yang termasuk dalam indeks LQ-45, STI, FTSE BM KLCI, SET 50, PSEI dan memenuhi kriteria penelitian.Teknik analisa data menggunakan one sampel t-test dengan data kuantitatif. Hasil penelitian menemukan bukti bahwa pasar modal Indonesia dan Thailand sangat bereaksi terhadap peristiwa piala dunia tahun 2014. JEL Classification: G14, M20

scholarly journals Profiting on the Stock Market in Pandemic Times: Study of COVID-19 Effects on CESEE Stock Markets

Mathematics ◽  
2021 ◽  
Vol 9 (17) ◽  
pp. 2077
Author(s):  
Tihana Škrinjarić
Keyword(s):  
Stock Market ◽  
Event Study ◽  
Stock Markets ◽  
Trading Strategies ◽  
Eastern European ◽  
Negative Effects ◽  
Market Reactions ◽  
Study Approach ◽  
Study Methodology ◽  
Stock Market Reactions

This research deals with stock market reactions of Central Eastern and South Eastern European (CESEE) markets to the COVID-19 pandemic, via the event study methodology approach. Since the stock markets react quickly to certain announcements, the used methodology is appropriate to evaluate how the aforementioned markets reacted to certain events. The purpose of this research was to evaluate possibilities of obtaining profits on the stock markets during great turbulences, when a majority of the participants panic. More specifically, the contrarian trading strategies are observed if they can obtain gains, although a majority of the markets suffer great losses during pandemic shocks. The contributions to the existing literature of this research are as follows. Firstly, empirical research on CESEE stock markets regarding other relevant topics is still scarce and should be explored more. Secondly, the event study approach of COVID-19 effects utilized in this study has (to the knowledge of the author) not yet been explored on the aforementioned markets. Thirdly, based on the results of CESEE market reactions to specific announcements regarding COVID-19, a simulation of simple trading strategies will be made in order to estimate whether some investors could have profited in certain periods. The results of the study indicate promising results in terms of exploiting other investors’ panicking during the greatest decline of stock market indices. Namely, the initial results, as expected, indicate strong negative effects of specific COVID-19 announcements on the selected stock markets. Secondly, the obtained information was shown to be useful for contrarian strategy in order to exploit great dips in the stock market indices values.

Stock Market Reaction to Monetary Policy: An Event Study Analysis of the Brazilian Case

2018 ◽  
Vol 54 (11) ◽  
pp. 2577-2595 ◽  
Author(s):  
Flávio de Freitas Val ◽  
Marcelo Cabus Klotzle ◽  
Antonio Carlos Figueiredo Pinto ◽  
Claudio Henrique da Silveira Barbedo
Keyword(s):  
Monetary Policy ◽  
Stock Market ◽  
Event Study ◽  
Market Reaction ◽  
Study Analysis ◽  
Stock Market Reaction ◽  
Brazilian Case

scholarly journals Stock Market Response to Elections: An Event Study Method

2020 ◽  
Vol 7 (5) ◽  
pp. 9-18
Author(s):  
Kavita CHAVALI ◽  
◽  
Mohammad ALAM ◽  
Shireen ROSARIO
Keyword(s):  
Stock Market ◽  
Event Study ◽  
Market Response ◽  
Event Study Method

scholarly journals Reaksi Pasar Dalam Bentuk Return Sebelum, Selama, dan Sesudah Peristiwa Piala Dunia Tahun 2014 pada Pasar Modal Asean

2015 ◽  
Vol 2 (02) ◽  
pp. 229-237
Author(s):  
Ratih Pratiwi ◽  
Muhammad Yusuf
Keyword(s):  
Data Analysis ◽  
Stock Market ◽  
Stock Markets ◽  
Quantitative Data ◽  
Market Reaction ◽  
Jel Classification ◽  
T Test ◽  
World Cup ◽  
Data Analysis Technique ◽  
Analysis Technique

A B S T R A C T Investor realized that the stock market gradually decreased during World Cup.The research aimed to analyze the return of market reaction which happenned before, during, and after World Cup 2014 on ASEAN stock market. The sample involved 181 companies were included in LQ-45, STI, FTSE BM KLCI, SET 50, PSEI index, which fulfilled the reseach criteria. The data analysis technique used was one sampel t-test with quantitative data. Based on the result, can be concluded that Indonesia and Thailand stock markets were higly effected by World Cup. A B S T R A K Investor mengetahui bahwa setiap piala dunia berlangsung, pergerakan saham melambat. Hal tersebut terbukti dengan terjadi penurunan return saham di pasar modal. Penelitian ini bertujuan untuk menganalisa reaksi pasar dalam bentuk return terjadi sebelum, selama dan sesudah piala dunia tahun 2014 pada pasar modal ASEAN. Sampel yang digunakan dalam penelitian ini sebanyak 181 perusahaan yang termasuk dalam indeks LQ-45, STI, FTSE BM KLCI, SET 50, PSEI dan memenuhi kriteria penelitian.Teknik analisa data menggunakan one sampel t-test dengan data kuantitatif. Hasil penelitian menemukan bukti bahwa pasar modal Indonesia dan Thailand sangat bereaksi terhadap peristiwa piala dunia tahun 2014. JEL Classification: G14, M20

scholarly journals Diffusion Entropy Analysis: Stability of Indian Stock Market

2019 ◽  
Vol 8 (4) ◽  
pp. 9358-9362
Keyword(s):  
Stock Market ◽  
Stock Markets ◽  
Global Financial Crisis ◽  
Stock Exchange ◽  
Significant Drop ◽  
Bear Market ◽  
Diffusion Entropy ◽  
The Usa ◽  
The Stability ◽  
Indian Stock Market

The large amount of available data of stock markets becomes very beneficial when it is transformed to valuable information. The analysis of this huge data is essential to extract out the useful information. In the present work, we employ the method of diffusion entropy to study time series of different indexes of Indian stock market. We analyze the stability of Nifty50 index of National Stock Exchange (NSE) India and SENSEX index of Bombay Stock Exchange (BSE), India in the vicinity of global financial crisis of 2008. We also apply the technique of diffusion entropy to analyze the stability of Dow Jones Industrial Average (DJIA) index of USA. We compare the results of Indian Stock market with the USA stock market (DJIA index). We conduct an empirical analysis of the stability of Nifty50, Sensex and DJIA indexes. We find significant drop in the value of diffusion entropy of Nifty50, Sensex and DJIA during the period of crisis. Both Indian and USA stock markets show bull market effects in the pre-crisis and post-crisis periods and bear market effect during the period of crisis. Our findings reveal that diffusion entropy technique can replicate the price fluctuations as well as critical events of the stock market.

scholarly journals Reaksi Pasar Terhadap Peristiwa Politik Terkait Jokowi di Bursa Efek Indonesia

2015 ◽  
Vol 2 (3) ◽  
pp. 325-343
Author(s):  
Anis Sundiyah ◽  
I Made Sudana
Keyword(s):  
Stock Market ◽  
Event Study ◽  
Abnormal Return ◽  
Market Reaction ◽  
Stock Exchange ◽  
Presidential Candidate ◽  
Analysis Model ◽  
Stock Market Reaction ◽  
Political Events ◽  
Average Abnormal Return

This research examines stock market reaction to the political events related of Jokowi in the Indonesia Stock Exchange. Variables used in this research are average abnormal return (AAR) and cumulative average abnormal return (CAAR) which measured using a statistical test one sample t-test. In this research, there are 230 sampel in the announcement Jokowi as a presidential candidate, 316 sampelin the announcement of results of presidential election quick count and 339 sampel in the announcement of work cabinet. Analysis model in this research is event study during the test period of 11 days exchange trading. Consistency of the stock market reaction was compared descriptively based on the analysis of AAR and CAAR. Testresults of AAR and CAAR showed that stock market consistently reacted positively to the announcement Jokowi as a presidential candidate and the announcement of the work cabinet and inconsistent with the announcement of the results of quick count because stock market reacted negatively. keywords: event study, political events of Jokowi, AAR, CAAR, consistency reaction.

scholarly journals Effects of China’s Collective Forestland Tenure Reform Policies on Forest Product Firm Values

Land ◽  
2020 ◽  
Vol 9 (4) ◽  
pp. 127 ◽  
Author(s):  
Tingting Zhang ◽  
Shunbo Yao ◽  
Jinna Yu ◽  
Assem Abu Hatab ◽  
Zhen Liu
Keyword(s):  
Event Study ◽  
Stock Markets ◽  
Signaling Theory ◽  
Business Environment ◽  
Forest Product ◽  
Tenure Reform ◽  
Event Study Method ◽  
Expected Values ◽  
Chinese Stock Markets ◽  
The Impact

China’s collective forestland tenure reform has dramatically affected the business environment of domestic forest product firms. This study examines the impact of the said reform on the expected values of these firms, via the reaction of investors (as seen on the stock markets) towards the issuance of related policies. Based on signaling theory and the assumption that the Chinese stock markets are efficient in terms of work form, this study adopts an event study method and examines five policies during the 2003–2009 period. The numbers of forest product firms used in the examinations herein differ among the policies and range from 21 to 29. This study found that the policies have differentially affected the expected values of forest product firms and that the impact on firms lacking forestland holdings is generally more significant than that on firms that hold forestland. The findings of this study enhance our understanding of the effect of collective forestland tenure reform on the value of forest product firms; they also have implications on forest product firms as they work to adapt to the reform.

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