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

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.

scholarly journals The Effectiveness of Trade for Trade Segment as a Surveillance Effort to Prevent Price Manipulation: Evidence from India

2016 ◽  
Vol 6 (1) ◽  
pp. 9
Author(s):  
Kanaiyalal Shantilal Parmar ◽  
Chakrapani Chaturvedula
Keyword(s):  
Stock Returns ◽  
Event Study ◽  
Abnormal Returns ◽  
Stock Exchanges ◽  
Price Reaction ◽  
Price Manipulation ◽  
Surveillance Activity ◽  
Study Methodology ◽  
The Impact ◽  
Event Study Methodology

Indian Stock Exchanges use trade for trade segment as part of surveillance activity to restrict the unwanted growth in prices to safeguard the interest of the investors. This paper studies the impact of the announcement to shift securities to trade for trade segment on stock returns and volatility of the stock returns using event study methodology. It was found that the securities have generated exorbitant positive average abnormal returns during 30 days in the pre event period, which led the exchanges to shift these stocks to trade for trade segment. The event is found to be significantly impacting average abnormal returns during 30 days in the post event period showing the negative price reaction. Also volatility of the stocks returns is found to be increasing post the announcement.

scholarly journals The Impact of COVID-19 on Stock Returns of the Indian Healthcare and Pharmaceutical Sector

2021 ◽  
Vol 15 (1) ◽  
pp. 5-21
Author(s):  
Shivam Mittal ◽  
Dipasha Sharma
Keyword(s):  
Stock Returns ◽  
Event Study ◽  
Abnormal Returns ◽  
Pharmaceutical Sector ◽  
Event Window ◽  
Study Approach ◽  
Cumulative Abnormal Returns ◽  
Study Methodology ◽  
The Impact ◽  
Event Study Methodology

Increasing COVID-19 cases has not only impacted health and day-to-day lives of people, but it has also had a material effect on India’s economic growth. Stock returns of various sectors are evidence of a country’s stagnated growth but the healthcare and pharmaceutical sector might be affected in a different manner. The purpose of this paper is to find out how has this pandemic has impacted the healthcare and pharma stocks. Daily closing prices of sector specific indexes for 233 days ranging from 15 May 2019 to 24 April 2020 have been taken to compare different sectors with our test sector, on the basis of different criteria. This study has applied the widely used event study methodology on our test sector; calculated abnormal returns, cumulative abnormal returns and also tested their significance. Event study approach suggests that there have been significant abnormal returns and cumulative abnormal returns in our test sector (healthcare and pharmaceutical sector) over the event window, though while comparing it with other sectors through another econometric model, the returns are not statistically significant and do not explicitly indicate the same.

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

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.    

scholarly journals Dividend Announcement and Ex-Dividend Effects on Stock Return

2016 ◽  
Vol 8 (7) ◽  
pp. 207
Author(s):  
Dinh Bao Ngoc ◽  
Nguyen Chi Cuong
Keyword(s):  
Event Study ◽  
Stock Price ◽  
Stock Return ◽  
Dividend Policy ◽  
Abnormal Returns ◽  
Listed Companies ◽  
Announcement Date ◽  
Study Methodology ◽  
The Impact ◽  
Event Study Methodology

<p>We study the impact of dividend policy on the stock return by investigating reaction of the stock price on the dividend announcement date and the ex-dividend date.<strong> </strong>In order to achieve this goal, a sample comprising 1962 observations of dividend-related events from 432 listed companies in Vietnam during the period 2008 to 2015 is chosen to analyze and the event study methodology is used to estimate abnormal returns to the shares around the announcement date and the ex-dividend date. Our results clearly show that the effect of dividend announcement on the stock return is positive around the announcement date. In addition, the stock price moves up as long as the ex-dividend date approaches and then starts decreasing from this date onwards.</p>

scholarly journals Effects of changes in stock market index composition on stock returns: event study methodology on Zagreb Stock Exchange

2019 ◽  
Vol 5 (1) ◽  
pp. 43-54
Author(s):  
Tihana Škrinjarić
Keyword(s):  
Stock Market ◽  
Stock Returns ◽  
Event Study ◽  
Stock Exchange ◽  
Abnormal Returns ◽  
Stock Market Index ◽  
Market Index ◽  
Study Methodology ◽  
Composition Changes ◽  
Event Study Methodology

AbstractThis paper observes the short-run effects of stock market index composition changes on stock returns on the Zagreb Stock Exchange (ZSE). In that way, event study methodology is employed in order to estimate abnormal returns and compare them amongst three subsets of stocks: those leaving the market index, those entering it, and constantly included stocks. The research included 14 regular and extraordinary revisions of the market index in the period from January 2nd, 2015 until March 21st, 2018. The results have confirmed two research hypotheses: stock exclusions from the market index have a negative effect on stock returns on the ZSE, which is consistent with the price pressure hypothesis; and there exist asymmetric effects of index composition changes on stock returns. This is the first study of this kind on the Croatian stock market, thus more questions need to be answered in future research.

THE PRICE SENSITIVITY OF BUSINESS SERVICE OUTSOURCING ANNOUNCEMENTS BY UK COMPANIES

2003 ◽  
Vol 02 (01) ◽  
pp. 161-180 ◽  
Author(s):  
AHMAD H. JUMA'H ◽  
DOUGLAS WOOD
Keyword(s):  
Stock Returns ◽  
Event Study ◽  
Complete Analysis ◽  
Price Sensitivity ◽  
Business Service ◽  
Excess Returns ◽  
Service Outsourcing ◽  
Study Methodology ◽  
Daily Stock Returns ◽  
Event Study Methodology

This article investigates the market reaction to a sample of announcements of business service outsourcing arrangements made by UK quoted companies between 1991 and 1997. Event study methodology is applied to daily stock returns to measure the reaction, in the form of excess returns, immediately prior to and at the date of an outsourcing contract announcement. The conclusion is that initial announcements tend to enjoy positive and significant reaction and that the larger companies in the sample show a more positive reaction than smaller companies. Overall outsourcing announcements appear to be associated with excess returns but the absence of any recognized basis for disclosure prevents a complete analysis of such events.

International Mutual Fund Performance and Political Risk

2005 ◽  
Vol 08 (01) ◽  
pp. 167-184 ◽  
Author(s):  
Barrie A. Bailey ◽  
Jean L. Heck ◽  
Kathryn A. Wilkens
Keyword(s):  
Mutual Funds ◽  
Event Study ◽  
Mutual Fund ◽  
Abnormal Returns ◽  
Political Risk ◽  
Equity Mutual Funds ◽  
International Equity ◽  
Study Methodology ◽  
The Impact ◽  
Event Study Methodology

Recent years have witnessed phenomenal growth in both the number and size of US based international equity mutual funds. While the benefits of international diversification are well documented in the literature, empirical research relating to the performance of international mutual funds has been limited and contradictory. The purpose of this study is to examine the impact of political risk on the risk-adjusted returns of international mutual funds using a modified event study methodology. More specifically, the dummy variable event study methodology using portfolios rather than individual funds is used. This methodology addresses the problems of multiple event days and calendar clustering. The macro political risk event of interest is the Iraqi invasion of Kuwait. Results of the study suggest that shareholders of international equity mutual funds earn significant abnormal returns in the face of political turmoil.

scholarly journals Will Investors Profit By Following The Stock Recommendations Published In Barrons?

2011 ◽  
Vol 4 (3) ◽  
Author(s):  
Francis Cai ◽  
LianZan Xu
Keyword(s):  
Event Study ◽  
Abnormal Returns ◽  
Market Model ◽  
Stock Recommendations ◽  
Study Methodology ◽  
The Impact ◽  
Event Study Methodology

Barron's is a weekly financial magazine published by Dow Jones. It’s considered America's premier financial weekly. Every week, Barron’s magazine will include a section “Research Reports,” which contains the analysts’ recommendations. Using event study methodology and market model as a benchmark, we calculate abnormal returns to ascertain the impact of the recommendations published in the Research Reports. We find that there are no statistically significant long-term abnormal returns associated with the published recommendations in Barron’s.

Baggage Fees and Airline Stock Performance: A Case Study of Initial Investor Misperception

2012 ◽  
Vol 51 (1) ◽  
Author(s):  
Gerhard J. Barone ◽  
Kevin E. Henrickson ◽  
Annie Voy
Keyword(s):  
Financial Performance ◽  
Event Study ◽  
Stock Prices ◽  
Abnormal Returns ◽  
Stock Performance ◽  
Study Methodology ◽  
The Impact ◽  
Fuel Costs ◽  
Event Study Methodology

In response to increasing fuel costs, airlines began introducing baggage fees as a new source of revenue, fees which have since been increased. In this study, an event study methodology is used to examine the impact of these announcements on airline stock prices. The results indicate that the initial announcements led to negative abnormal returns for the announcing firm and other competing airlines, as they were interpreted as a sign of industry weakness. However, the results also show that subsequent increases in baggage fees, which had been shown to positively impact the airline’s financial performance, are associated with positive abnormal returns.

scholarly journals IMPACT OF DEMONETIZATION ON INDIAN BANKING STOCKS: AN EVENT STUDY METHODOLOGY

2021 ◽  
pp. 32-39
Keyword(s):  
Event Study ◽  
Tax Evasion ◽  
Stock Prices ◽  
Banking Sector ◽  
Abnormal Returns ◽  
Indian Government ◽  
Study Methodology ◽  
Indian Stock Market ◽  
The Impact ◽  
Event Study Methodology

Demonetization is the withdrawal of a particular form of currency from circulation. In other words, the notes lose their value as a currency. It is an instrument that is used to manage various economic problems such as inflation, corruption, tax evasion, etc. The Indian government on November 8, 2016, decided to demonetize high denomination currencies. This announcement had an impact on several sectors of the Indian economy. This study is an investigation to measure the impact of demonetization announcements on the Indian banking sector. This study employs cumulative abnormal return (CAR) and an event study methodology to measure the impact of the decision on the selected banking stocks. The study shows that demonetization had a significant impact on the stock prices of selected banks. The findings of the study suggest that on the event day, none of the selected stock has shown significant positive abnormal returns. Further on the event day and followed by the event day positive significant ARR is observed indicating demonetization had a significant impact on the stock prices of selected banks. Also, CAR on the event day is not equal to zero indicating the Indian stock market was not efficient for demonetization announcement.

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