Event Study Research Papers - Academia.edu (original) (raw)

“Power is war, the continuation of war by other means”: Foucault’s reversal of Clausewitz’s formula has become a staple of critical theory — but it remains highly problematic on a conceptual level. Elaborated during Foucault’s 1976 lectures (“Society Must Be Defended”), this work-hypothesis theorises “basic warfare” [la guerre fondamentale] as the teleological horizon of socio-political relations. Following Boulainvilliers, Foucault champions this polemological approach, conceived as a purely descriptive discourse on “real” politics and war, against the philosophico-juridical conceptuality attached to liberal society (Hobbes’s Leviathan being here the prime example).
However, in doing so, Foucault did not interrogate the conceptual validity of notions such as power and war, therefore interlinking them without questioning their ontological status. This problematic conflation was partly rectified in 1982, as Foucault proposed a more dynamic definition of power relations: “actions over potential actions”.
I argue, somewhat polemically, that Foucault’s hermeneutics of power still involves a teleological violence, dependent on a polemological representation of human relations as essentially instrumental: this resembles what Derrida names, in “Heidegger’s Ear”, an “anthropolemology”. However, I show that all conceptualisation of power implies its self-deconstruction. This self-deconstructive (or autoimmune) structure supposes an archi-originary unpower prior to power: power presupposes an excess within power, an excessive force, another violence making it both possible and impossible. There is something within power located “beyond the power principle” (Derrida). This (self-)excess signifies a limitless resistantiality co-extensive with power-relationality. It also allows the reversal of pólemos into its opposite, as unpower opens politics and warfare to the messianic call of a pre-political, pre-ontological disruption: the archi-originary force of différance. This force, unconditional, challenges Foucault’s conceptualisations of power, suggesting an originary performativity located before or beyond hermeneutics of power-knowledge, disrupting theoreticity as well as empiricity by pointing to their ontological complicity.
The bulk of this essay is dedicated to sketching the theoretical implications of this deconstructive reading of Foucault with respect to the methodology and conceptuality of political science and social theory.

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- Critical Theory, Discourse Analysis, Sociology, Cultural Studies

The purpose of this research is to assess the effects of major tax legislation on the stock prices of firms in the oil and gas industry. Event study methodology is used to examine the behavior of security prices of oil and gas firms in response to the Joint Conference Committee vote in August 1986. Event studies have been used extensively over the past twenty years to determine the impact of both firm-specific events (such as stock splits and bond downgrades) and industry-wide events (such as new regulations) on common stock prices. The major objective in these studies has been to determine the extent to which security returns around the event were different from expected returns based on a prediction model. These studies have shown that capital markets are highly efficient, i.e., stock prices adjust quickly to publicly available information as investors act in response to new expectations of risk and returns (Hill and Schneeweis 1983).

- by Stuart Michelson
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- Oil and gas, Applied Economics, Legislation, Event Study

Verificar se o evento do anúncio do patrocínio das empresas aos jogos olímpicos Rio-2016 efetivamente cria valor de mercado a essas empresas Fundamento: A forma semiforte da hipótese do mercado eficiente (HME) considera que os preços refletem não só o histórico da companhia, mas também todas as informações recentes publicadas. Logo, estima-se que o anúncio do patrocínio aos jogos olímpicos, por essas empresas, aumente o preço de suas ações. Método: Estudo de eventos com 11 companhias que realizam reinvestimentos em patrocínio para a olimpíada Rio-2016. Resultados: Os resultados apontam que 51,6% (81 dos 157) dos pregões apresentam retornos anormais acumulados (CARs) positivos e que 72,7% (8 das 11) das companhias possuem CARs estatisticamente diferentes de zero. Logo, a análise de dados corrobora a hipótese de que o anúncio de patrocínio aos jogos olímpicos impacta positivamente o preço das ações dessas companhias. Contribuições: Esse estudo contribui com a aplicação do método de Campbell, Lo e Mackinlay (1997) na análise do patrocínio de jogos olímpicos. Pesquisas anteriores sobre esse mesmo tema utilizam o método de Brown e Warner (1980 e 1985) para estudos de eventos. Nelas, os resultados não confirmam a HME, uma vez que não é obtida significância estatística nos resultados dos testes para a maioria das amostras. Palavras-chave: Estudo de Evento. Patrocínio. Jogos Olímpicos. Valor de mercado.

- by Caio Canuto Martins Brandão and +2
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- Sponsorship, Olympic Games, Sport sponsorship, Event Study

Event studies focus on the impact of particular types of firm-specific events on the prices of the affected firms' securities. In this paper, observed stock return data are employed to examine various methodologies which are used 111 event studies to measure security price performance. Abnormal performance is Introduced into this data. We find that a simple methodology based on the market model performs well under a wide variety of conditions.

- by Stephen Brown
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- Financial Economics, Event Study, Stock Returns

Emerging market policy makers have been concerned about the financial stability implications of financial globalisation. These concerns are focused on behaviour under stressed conditions. Do tail events in the home country trigger off extreme responses by foreign investors -are foreign investors `fair weather friends'? In this, is there asymmetry between the response of foreign investors to very good versus very bad days? Do foreign investors have a major impact on domestic markets through large inflows or outflows -are they 'big fish in a small pond'? Do extreme events in world markets induce extreme behaviour by foreign investors, thus making them vectors of crisis transmission? We propose a modified event study methodology focused on tail events, which yields evidence on these questions. The results, for India, do not suggest that financial globalisation has induced instability on the equity market.

- by Ajay Punamchand Shah
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- Finance, Financial Economics, Financial Markets, International Finance

We test for a relation between football match results and the specific national stock index returns during the period 1990–2006 by means of an event study approach. We employ two different econometric frameworks to cross-check our results and prevent them from being solely model driven: the constant mean model and a two-state Markov-switching market model. Both approaches find no significant

- by Bernhard Zwergel
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- Football, Event Study, Regression Analysis, Market efficiency

The financial innovations of the late 1990s have led to the emergence of a significant number of new instruments, in particular in the market for hedging credit risk. This paper, based on an original dataset of transactions and quotes, looks at credit default swaps drawn on sovereign countries. The study of the credit default swap market around major financial crises leads to several results: Markets' consideration of ratings around the world changes dramatically after major financial crises, even for those countries that are not in crisis. While ratings seem suddenly to matter more, pricing uncertainty increases as well. Thus large financial crises appear to create strong information uncertainty, rather than resolve previous uncertainty. After a major crisis event, there is significant 'flight-to-quality' that is accompanied by a strong relative rise of demand for sovereign credit protection. We also document the extra-significance of transaction data compared to quote data in an OTC market. Overall, sovereign ratings appear to be the pricing tool of last resort when crises disturb markets.

- by Gero Jung
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- Financial Innovation, Credit Risk, Event Study, Flight to Quality

This study analyzes the effect of corporate bond rating changes by international agencies on stock prices. This topic has not yet been analyzed for the Spanish stock market, despite the growing importance of ratings in Spanish financial markets. On an efficient market, rating changes will only have an effect if they contain some new information. The results from an event study indicate that rating actions cause significant negative abnormal returns in issuing firms around the date of the announcement. This evidence indicates an informational effect related to downgrades, which supports the hypothesis that credit rating agencies provide information that may reduce the asymmetric information problem between firms and investors. In the case of upgrades, our results are compatible with a redistribution of wealth between bondholders and owners or with the reputation hypothesis.

- by M. Dolores Robles
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- Economics, Stock Market, Event Study, Asymmetric Information

We study the impact credit rating revisions have on stock returns of Australian firms rated by Standard & Poor's and Moody's. Our evidence is consistent with that documented in the USA showing that only downgrades contain pricerelevant information. The reaction is most significant when the downgrade: (i) is unanticipated; (ii) is for an unregulated firm; and (iii) reduces the firm's rating by more than one category.

- by Elisa Choy
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- Credit Rating, Credit Ratings, Event Study, Accounting Finance
- by Harry Entebang
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- Stock Market, Firm Performance, Event Study, Empirical Study

The 1990s have witnessed pronounced boom-bust cycles in emergingmarkets lending, culminating in the Asian financial and currency crisis of 1997-8. By examining the links between sovereign credit ratings and dollar bond yield spreads over 1989-97, this paper aims at broad empirical content for judging whether the three leading rating agencies -Moody's, Standard & Poor's and Fitch IBCA -can intensify or attenuate boom-bust cycles in emerging-market lending. First, an event study exploring the market response for 30 trading days before and after rating announcements finds a significant impact of imminent upgrades and implemented downgrades for a combination of ratings by the three leading agencies, despite strong anticipation of rating events. Second, a Granger causality test, by correcting for joint determinants of ratings and yield spreads, finds that changes in sovereign ratings are mutually interdependent with changes in bond yields. These findings are based on many more observations than just the highly publicized crisis episodes in Mexico and Asia. They imply that sovereign ratings have the potential to moderate euphoria among investors on emerging-market bonds, but that the rating agencies have failed to exploit that potential over the past decade.

- by Helmut Reisen
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- Finance, Emerging Markets, Emerging Market, Credit Rating

Purpose-The purpose of this study is to examine the effect of the Public Disclosure Platform (PDP) notifications of Beşiktaş, Galatasaray, Fenerbahçe and Trabzonspor clubs on stock returns. Methodology-In the study, the transfer meeting announcements of football clubs, the positive results of the transfer negotiations and the dates of the sponsorship agreement were evaluated as notification dates. In the research, the data of 2009-2010/2019-2020 seasons were used and the changes in stock returns on (date) and afterwards were determined. However, due to the COVID-19 outbreak, the data included in 2020 were not analyzed. Findings-In the analysis, it is concluded that notifications related to football clubs provide extremely high returns from stocks, and the market is not effective. Conclusions-As a result of the notifications of important transfers to PDP, all news channels and newspapers give an important place to this notification. As a result of this situation, people can buy the stocks of their existing teams by not acting rationally and with the awareness of fans. Based on this, it is understood that the transfer news is effective for Turkish football clubs.

- by Mustafa KEVSER and +1
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- Event Study, Public disclosure, Management Football Clubs, Stock Returns

Purpose -To investigate whether a stock split is still considered a policy that creates value for the underlying company and the rationale behind such action for companies listed on the NASDAQ. Design/methodology/approach -The event study methodology of Strong is employed to examine the announcement effect of stock splits on stock prices. Findings -The results indicate a positive market reaction at the stock split announcement and that the liquidity hypothesis explains well the rationale for the stock splits.

- by Katerina Lyroudi
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- Managerial Finance, Event Study, Design Methodology, STOCK EXCHANGE

This study was conducted to evaluate the trend in external debts, and events influencing the increase or decrease
in external debts of Pakistan. Obviously external debt is risky for economic development in both developed and
developing countries but the developing countries are more prone to suffer as compared with developed countries.
Developing countries are facing the problems of capital scarcity, low saving, traditional technology, poor
education and lack of resources for economic development. The problem of public debt in Pakistan is very grave
and is almost of similar nature. Although Pakistan’s external debt has increased because of misuse of loans, and
many developmental projects remained uncompleted due to political instability and frequent changes in
governments policies because each new government plan their new projects and new policies further over burden
the economy. Pakistan’s population increases very rapidly and therefore demand increases. Pakistan is not selfsufficient
in food stuffs and even imports wheat from abroad. Strong defense is imperative for a country but
spending of huge amount on defense increases external debt further. The economic status of Pakistan is very unsafe
with unsustainable external debt. Pakistan has been unsuccessful in controlling a balance between expenditure and
revenue. High and rising external debt burden constitutes a serious constraint for development; a major barrier to
macroeconomic stability and hence, to growth and poverty reduction; a discouragement to foreign investment
because it creates a high risk environment and exchange rate depreciation; and a discouragement for government
to carry out structural reforms in the various sectors of the economy.

- by Dr Nawaz Ahmad
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- Pakistan, Event Studies, External Debt, Event Study

Radiation induced breast cancer is a highly complex phenomenon, which most likely involves the accumulation of several genetic and epigenetic events. Studies of atomic bomb survivors, patients who underwent multiple fluoroscopic examinations during treatment for pulmonary tuberculosis, those who received therapeutic radiation for benign breast disease, such as acute post-partum mastitis, or those with an enlarged thymus or skin haemangioma and patients with Hodgkin's disease treated by mantle radiotherapy established that the risk of breast cancer increases with exposure to ionising radiation. The carcinogenic effect of therapeutic or accidental radiation is highest when exposure occurs during childhood and exposure after age 40 imparts low or minimal risk. The risk of bilateral breast cancer is not significantly increased in the survivors of atomic bomb and therapeutic radiations. Fractionated exposures for therapeutic radiation are similar to a single exposure of the same total dose in their ability to induce breast cancer; this risk remains high for many years after exposure. Younger age at first full term pregnancy confers a protective effect against the risk of breast cancer in the survivors of atomic bomb but long-term data on this beneficial effect after therapeutic radiation is not available.

- by abdul sami
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- Genetics, Epidemiology, Radiation, Breast Cancer

The objective of this study was to establish the effects of dividend announcement to current market prices at the Nairobi Securities Exchange, with four specific objectives; to determine the information content of dividend announcements, to determine the extent to which prices converge to new values after dividend announcements on a sector by sector basis, to establish the market reaction to announced information and also to establish whether investors can secure excess returns by acting on announced information. A 66 days event timeline was employed from 2005 to 2015 on daily closing stock prices. A sample of 179 dividend announcements from 22 listed companies in 8 sectors were drawn and analysed using an OLS Market Model. Findings of the research conclude that; dividend announcements do have an impact on stock prices for the Agricultural, Banking, Commercial, Construction, Manufacturing and Telecomm Sectors and not for the Energy Sector, Insurance Sector and the Nairobi Securities...

- by Duncan Turere
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- Business, African Studies, East Africa, Financial Risk Management

delivering business capabilities, designing knowledge management systems using concepts from systems design, hypertext design and workflow management, querying complex dynamic systems, hypermedia design and development, and model management systems. Recently, he has begun to analyze the software industry to understand the logic and patterns of emergence of software architecture from two complementary perspectives-the emergent architecture as a network of connections among a set of components (modules) that interoperate across one or more platforms, and the emergent architecture as the result of moves and countermoves by different companies supplying these modules and platforms; and, as such, the architecture as dynamic and evolving. He has published papers in ABSTRACT: The existence of product complementarities is especially relevant in network-type industries, such as information technology and communications, where systems of complementary components made by different manufacturers have to be assembled. Relying on the characteristics of software markets and drawing on the economic theory of complementarities, this paper investigates how complementarities create value in mergers and acquisitions between software companies. We introduce and empirically validate the software stack as a structure to measure complementarities. In a sample of mergers and acquisitions, in which either the acquirer or the target is a software firm, we find values of abnormal returns consistent with previous results. However, when we use the concept of stack, we find an inverse curvilinear relationship between abnormal returns and the distance between acquirers and targets in various layers of the stack. 120 LUCIA SILVA GAO AND BALA IYER KEY WORDS AND PHRASES: complementarities, empirical methods, event study, mergers and acquisitions, product complementarities, software stack, technology firms, theory development, value creation.

This study contributes to the limited established empirical research on the impact and relevance of corporate social responsibility (CSR) in the capital markets of emerging economies. We conducted an event study to demonstrate how the timing of CSR announcements by firms that have aligned their strategies to newly instituted social regulations in South Africa influenced stock prices. Using a unique dataset of publicly listed South African enterprises that undertook CSR initiatives during the ten year period from 1996 to 2005, we found that investor reactions to CSR announcements concluded during the late phase of institutional reforms are viewed positively by investors. Furthermore, CSR announcements of substantive monetary value result in significantly higher shareholder returns.

- by Gaiyan Zhang
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- Marketing, Economics, Corporate Social Responsibility, Emerging Economies

OPEC producers, individually or collectively, often make statements regarding the "fair price" of crude oil. In some cases, the officials commenting are merely affirming the price prevailing in the crude oil market at the time. In many cases, however, we document that they explicitly disagree with the contemporaneous futures price. A natural question is whether these "fair price" pronouncements contain information not already reflected in market prices. To find the answer, we collect "fair price" statements made between 2000 and 2009 by officials from OPEC or OPEC member countries. Visually, the "fair price" series looks like a sampling discretely drawn (with a lag) from the daily futures market price series. Formally, we use several methodologies to establish that "fair price" pronouncements have little influence on the market price of crude oil and that they supply little or no new news to oil futures market participants.

- by Celso Brunetti
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- Economics, Kalman Filter, OPEC, Event Study

Successful companies in the information technology sector pursue alliances and acquisitions as a way to compete and grow. It is, however, not clear if these strategies work in all situations. In this study we look at 103 alliances in the packaged software industry over a period of four years (1999–2002). Combining the economic theory of complementarities with a concept that captures the relationship between software products offered by firms to the market called software stack, we show how firms create value using alliances. Applying the events studies methodology, our analysis shows that firms generate greater value when forming alliances within the same layer of the stack when compared to results from alliances made across layers. This finding is opposite to what was found in the case of mergers and acquisitions. We discuss the implications of our findings.

- by Lucia Gao
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- Information Systems, Information Technology, Applied Economics, Event Study

The purpose of this article is to emphasize the importance of corporate governance, information systems and their theoretical and practical knowledge in the upcoming years. It does not only offer an analysis of the use of information and knowledge in universities, but also explains its main significance. Another objective is to join some specific fields such as artificial intelligence, information systems, marketing, marketing research and knowledge management so that sharing, distribution and creation can be transmitted to the undergraduate student of business administration as well. In order to write this paper, the available bibliography was reviewed and a quantitative exploratory research was conducted in some universities in São Paulo, Brazil. The study showed that students of the undergraduate courses in Business Administration had low level of knowledge in Information System and Marketing Research while they are in the school and this fact permit analytical vision of risks in the treatment of governance.

- by Rajiv Sabherwal
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- Marketing, Information Technology, Knowledge Management, Decision Sciences

IT internal controls are an important component of an organization's arsenal of internal controls. Upon conceptualizing failures of operational IT systems, or what we call IT operational risk events, as signals of IT internal control weaknesses, we theorize about these events' impact on internal control objectives in general and about how this impact is influenced by the regulatory environment in particular. We then perform an event study to examine the economic impact of a diversified sample of IT operational risk events from the U.S. financial services industry during 1985-2009. We specifically test the impact of contextual factors on the degree of this effect, including the events' target (confidentiality, integrity, or availability of IT assets), the source of disclosure (regulatory or voluntary), the enactment of the Sarbanes-Oxley Act, and firm-specific attributes. We find that investors penalize firms most strongly for experiencing events that compromise the availability of IT systems, consistent with our prediction that these events more negatively impact the reliability of financial reporting and the efficiency and effectiveness of operations. This result contrasts extant empirical studies that are predominantly concerned with information and security breaches. We find also that investors' penalty is the strongest for firms experiencing IT operational risk events that occurred after the passing of the Sarbanes-Oxley Act or were disclosed by a regulatory body. Finally, the market reaction is shown to be stronger for firms with high growth potential, firms that are larger, riskier, and are in the banking sector. Implications for research and practice are discussed along with directions for future research.

- by Michel Benaroch and +1
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- Information Systems, Accounting Information Systems, Financial Services, Event Study

In this study, we explore the conditions under which acquirers earn abnormal returns. We provide an empirical test of Barney and Chatterjee's arguments by examining the role of the respective resource contribution of the target and the acquirer. Combining an event study with a survey of postacquisition resource transfer on a sample of 101 horizontal acquisitions, we find that acquirers do not earn abnormal returns when they only receive resources from the target. In this case, it is likely that multiple bidders, which could have equally captured these resources, competed away all the abnormal returns from the successful bidder. In contrast, we find that acquirers can expect to earn abnormal returns when they transfer their own resources to the target. Overall, we find that value creation does not ensure value capture for the acquirer.

- by Laurence Capron and +1
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- Marketing, Strategic Management, Business and Management, Event Study

Assessing the value of information technology (IT) security is challenging because of the difficulty of measuring the cost of security breaches. An event-study analysis, using market valuations, was used to assess the impact of security breaches on the market value of breached firms. The information-transfer effect of security breaches (i.e., their effect on the market value of firms that develop security technology) was also studied. The results show that announcing an Internet security breach is negatively associated with the market value of the announcing firm. The breached firms in the sample lost, on average, 2.1 percent of their market value within two days of the announcement-an average loss in market capitalization of 1.65billionperbreach.Firmtype,firmsize,andtheyearthebreachoccurredhelpexplainthecross−sectionalvariationsinabnormalreturnsproducedbysecuritybreaches.Theeffectsofsecuritybreachesarenotrestrictedtothebreachedfirms.Themarketvalueofsecuritydevelopersispositivelyassociatedwiththedisclosureofsecuritybreachesbyotherfirms.Thesecuritydevelopersinthesamplerealizedanaverageabnormalreturnof1.36percentduringthetwo−dayperiodaftertheannouncement−anaveragegainof1.65 billion per breach. Firm type, firm size, and the year the breach occurred help explain the cross-sectional variations in abnormal returns produced by security breaches. The effects of security breaches are not restricted to the breached firms. The market value of security developers is positively associated with the disclosure of security breaches by other firms. The security developers in the sample realized an average abnormal return of 1.36 percent during the two-day period after the announcement-an average gain of 1.65billionperbreach.Firmtype,firmsize,andtheyearthebreachoccurredhelpexplainthecross−sectionalvariationsinabnormalreturnsproducedbysecuritybreaches.Theeffectsofsecuritybreachesarenotrestrictedtothebreachedfirms.Themarketvalueofsecuritydevelopersispositivelyassociatedwiththedisclosureofsecuritybreachesbyotherfirms.Thesecuritydevelopersinthesamplerealizedanaverageabnormalreturnof1.36percentduringthetwo−dayperiodaftertheannouncement−anaveragegainof1.06 billion in two days. The study suggests that the cost of poor security is very high for investors.

- by hack stock
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- Information Technology, Internet Security, Security Management, Event Study

Demergers of conglomerates are a common phenomenon in financial markets across the world. Carried out with different motives generally, in a share demerger program, the company distributes the shares of demerged entity to the existing shareholders without any consideration. Demergers in Indian companies are over a decade old phenomena, with many companies opting for the same. This paper examines the demergers and the announcement period price reaction of demergers during the year 2012-2014. The authors have studied total 51 demergers of companies listed in India and tried to establish that demergers results into abnormal returns for the shareholders of the parent company. Using event study methodology the authors have analyzed the security price performance of the announcement day effect 10 days prior to the announcement to 10 days post demerger announcement. They have found significant out-performance of the security over the benchmark index post demerger announcement ranging from 1.74% average abnormal return for a demerger announcement to 0.16% average abnormal return 10 days following the announcement.

- by Pavak Vyas
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- Event Study, Academic Spin-Offs, Event-study methodology, Mergers Ad Demergers

Following the Brown-Warner simulation approach and using Chilean daily security return data we examine the specification and power of three parametric t-tests commonly employed in event studies: the standardized, the cross-sectional and the portfolio t-test. Our findings show that although individual security returns and security abnormal returns are evidently nonnormal, the cross-sectional mean abnormal returns converge to normality as the sample size increases. Thus, in event study setting involving event period of one day, methods based on the use of parametric t-tests seem to be well specified, at least at the 5% significance level. In terms of power, our simulation results show the standardized t-test always more likely to detect the presence of an abnormal return that its two parametric competitors: the cross-sectional and the portfolio t-test. We also find, however, that the power of the three t-tests is very sensitive to either the sample size or the length of the event period.

- by Eduardo Sandoval
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- Economics, Event Study, Sample Size, Cross Section

This study presents analysis of the impact of “official product” sports sponsorships with the National Football League (NFL), Major League Baseball (MLB), the National Hockey League (NHL), the National Basketball Association (NBA), and the Professional Golfers Association (PGA) on the stock prices of sponsoring firms. The primary finding of the study is that, in the main, announcements were accompanied by increases in shareholder wealth. The 53 sponsors analyzed experienced mean increases in stock valuations of about $257 million. A multiple regression analysis of firm-specific stock price changes and selected corporate and sponsorship attributes indicates that official product sponsorships with the NBA, NHL, and PGA and those with smaller market shares were associated with the largest gains in share prices. Although corporate cashflow (a proxy for agency conflicts) is statistically unrelated to shareholder approval, sponsorships by high-technology companies were associated with stronger stock price reactions than otherwise. Finally, product congruence with the sponsored sport was positively related to changes in stock prices.

- by T. Bettina Cornwell
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- Marketing, Tourism, Business and Management, Event Study

The purpose of this study is to analyze whether the news provides an opportunity to obtain abnormal re-turns, which news are announced by companies traded in BIST-30 during January 2003 to December 2012. The firm-specific news are classified on 5 main topics which are corporate governance related an-nouncements, financial announcements, legal announcements, operational announcements and restructur-ing related announcements. The data covers 2143 news announced by BIST-30 companies. For data anal-ysis event study is used. As a result, it is determined investors mostly react to announcements about operational, financial and restructuring news in terms of the average abnormal returns (ARR) at the day of event respectively. Result shows that Borsa Istanbul is not effective at semi-strongly form within the scope of efficient market hypothesis.

- by Kemal Eyüboglu
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- Event Study, Abnormal Returns

It is widely believed that once news is made public the information is fully reflected in prices within at most a day or two (the efficient market hypothesis). We test this idea using the set of 245,429 Wall Street Journal corporate news stories from 1973 to 2001. Using computational linguistics methods we classify the stories according to topic, and for each topic with a sufficient number of identified events, we run an event study. Our results differ from popular impressions in several ways. 1. On average there is a reversal or overreaction, so that pre-event and post-event abnormal returns have the opposite sign. 2. Statistically significant return momentum is observed for many days after publication. 3. As a result, the inference to be drawn from an event study is often very sensitive to the assumed event window. 4. The average news story has a bigger and more prolonged impact during a recession than during an expansion.

- by Werner Antweiler
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- Event Study

Environmental Risk Assessment (ERA) is outlined as- “an estimate of the probability or likelihood of associate degree adverse impact on the surroundings ensuing from human activities. It results in associate degree understanding of the probably adverse impacts and also the risks obligatory on the surroundings caused by varied operations of a corporation. It helps in selecting acceptable technologies, web site choice, and implementing preventive measures. Even throughout the development and operational phases of the comes, ERA provides important info that reduces risks and prices. wanting on the far side compliance, a corporation will use the framework of ERA for making certain property development.

- by IAEME Publication
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- Stock Market, Event Study, Dividend Announcement, Iaeme, Ijcet
- by HAKAN TURKKUSU
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- Event Management, Sporting Events, Events management, Event marketing

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- by Abagail McWilliams
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- Marketing, Business and Management, Event Study, Academy of Management Review

The event study has been one of the most popular empirical research designs used m accounting and finance This article rewews event studies based on volatility of returns and trading volume. The rationale for such studies is briefly examined and the salient methodological ~ssues involved are outhned. The volume-volatility relationship, and its relevance m this regard, is also hlghhghted.

- by PRADEEP YADAV
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- Event Study

FCCBs is a fund raising instrument of Indian corporate sector to access the international investors. The various factors associated with FCCBs send positive and negative signal to the market during its issue, which in turn effect on the shareholders wealth. Majority of Indian FCCBs are issued during 2004-2010 in this period the major crisis period of the Indian stock market also falls .In order to avoid overlap possibilities of crisis effect, this study considered only the FCCBs which was issued during 2004 to 2007.We have used event study methodology for the analysis of 151 FCCB issue effects on shareholders wealth and the results shows the negative effect from FCFCCBs issue on shareholders wealth during the pre-crisis period in India

- by IAEME Publication
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- Event Study, Wealth, Shareholders

With rising environmental concerns from consumers and stakeholder groups, environmental management has become an important responsibility for today's fashion and textiles manufacturers. The production of fashion and textiles related products often requires high levels of energy and water consumption, and emits large quantities of pollutants to the environment. Therefore, the adoption of environmental management systems (EMSs) is important and could have a significant impact on these firms' operational performance. This study presents empirical evidence on the performance impact of EMS adoption in the fashion and textiles related industries (FTIs). Although EMSs have emerged as a passport to business in the FTIs, their actual impacts on firms' financial performance have not been explored. We reveal that the adoption of ISO 14000, the most popular EMS, improves manufacturers' profitability in the FTIs over a three-year period as measured by return-on-assets (ROA). Based on our sample, we find that profitability improvement started during the implementation stage and continued at least one year after the firm obtained ISO 14000 certification. We also find that profitability improvement is mainly due to improvement in cost efficiency, measured by return-on-sales (ROS). Specifically, certified firms improved up to 2.9% in ROA and 3.3% in ROS over the three-year period since they implemented ISO 14000. We conclude that there is a positive impact of EMS adoption on firms' financial performance in the FTIs.

- by Aigbe Akhigbe
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- Business, Multidisciplinary, Event Study
- by Markus Auer
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- Terrorism, Performance, War, Event Study

A consensus has emerged in the burgeoning literature on corporate social responsibility (CSR) that "virtuous" firms are often rewarded by the marketplace. Unfortunately, the mechanisms through which those rewards materialize are not well understood. Furthermore, it is difficult for managers and investors to know whether a company is actually engaged in responsible behavior. Thus, many stakeholders rely on institutional assessments of a firm's social practices to inform their own judgments about that company's CSR reputation. In this article, we draw on institutional theory and research on reputation and legitimacy to investigate the relationship between institutional endorsements (and repudiation) of CSR and firm financial performance. Our empirical results indicate that institutional intermediaries influence market assessments of a firm's social responsibility and highlight the importance of the legitimacy-conferring function of expert bodies in understanding the relationship between social and financial performance. Our findings also illustrate the delicate interplay among different social performance assessments, reputation, and measures of financial and operating performance such that operating performance may serve as an advanced indicator of social performance and one type of social performance assessment may temper market reactions to another.

- by Donald Siegel
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- Management, Marketing, Corporate Social Responsibility, Institutional Theory

This paper estimates monthly pass-through ratios from import prices to consumer prices in real time. Conventional time series methods impose restrictions to generate exogenous shocks on exchange rates or import prices when estimating pass-through coefficients. Instead, our estimation strategy follows an event-study approach based on monthly releases in import prices. Projections from a dynamic common factor model with daily panels before and after monthly releases of import prices define the innovation for import prices. We apply our identification procedure to Swiss prices and find strong evidence that the median of the monthly pass-through ratio is around 0.3. Tests show that standard assumptions of non-real time data and limited information breath are critical for the pass-through estimates.

- by Andreas Fischer
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- Time Series, Economic Theory, Applied Economics, Monetary Policy

The globalization of media content has encouraged the growth of cross-cultural promotional channels; yet empirical evaluations of advertising strategies at an international level are sparse. This paper advances research in this emerging area by analyzing the global financial markets’ valuation of commercial sponsorships in Formula One (F1) motor racing. While previous research indicates U.S. markets approve of similar promotional investments, the results of this international event study demonstrate the market value of firms entering into F1 sponsorships decline upon announcement. The level of investment and nationality congruence of the sponsorship appear to enhance the probability for negative returns in shareholder value.

- by S. Pruitt
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- Marketing, Advertising, Sport Marketing, Formula One

test key portions of this theory of the 'insurance-like' property of CSR activity. We posit that such activity leads to positive attributions from stakeholders, who then temper their negative judgments and sanctions toward firms because of this goodwill. We extend the risk management model by theorizing that some types of CSR activities will be more likely to create goodwill and offer insurance-like protection than other types. We delineate several firm and event specific characteristics that we expect to influence the link between CSR activities and an insurance effect. We then test our model using an event study of 178 negative legal/regulatory actions against firms throughout the 11 years from 1993-2003. We find that participation in institutional CSR activities-those aimed at a firm's secondary stakeholders or society at large-provides an 'insurance-like' benefit, while participation in technical CSRs-those activities targeting a firm's trading partners-yields no such benefits. We conclude by considering the implications of our findings for future theorizing and research into the economic value of CSR engagement. 9 We would have preferred a participation variable in negative CSRs to create a symmetrical variable with our ICSR and TCSR variables; however, 94 percent of the firms in the sample engaged in some negative CSR activity, and a participation variable would create no variance for analysis.

- by Jared Hansen
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- Management, Marketing, Business Administration, Sociology

Share market react to the each event occur in the market. In Sri Lanka, there are only few
evidence linked between release of annual financial statement and share prices. Therefore,
this study scrutinizes stock market reaction to the release of annual financial statements of
selected listed banking finance and insurance companies on Colombo stock exchange (CSE)
in Sri Lanka. The present study considered stock market reaction as the independent variable,
which measured by average abnormal return (ARR) and cumulative abnormal return (CAAR)
those are depended on release of annual financial statements. The sample of this study has
been examined the twenty banking finance and insurance companies listed on CSE over a
period of five years from 2009 to 2013. The required data and information for the study were
gathered from published annual reports and website of listed companies in CSE from 2009 to
2013. Standard event study methodology is employed to find the results.The study results
confirm that abnormal return and cumulative abnormal return of stock prices around the
release of annual financial statements are indicate significant positive at 5% level that
confirm the efficiency of the market.
Key words: event study, market efficiency, average abnormal return, cumulative
abnormal return

- by Nirujah Raja
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- Accounting, Share market analysis, Event Study

Purpose -Using a stakeholder perspective, this paper aims to investigate the effectiveness of sponsorship as a business investment by assessing the impact of sponsorship announcements on the shareholders' reactions of the sponsoring firms. These reactions are examined in two different occasions: in an international mega sport event such as the Olympic Games and in sport organizations such as sport federations/associations. Design/methodology/approach -Event study analysis by using multiple regression models and bootstrapping techniques were employed to study the effects of sponsorship announcements. The sample consisted of sponsors of the 2004 Olympic Games and sponsors of national sport federations. Findings -Overall, the results of the study did not indicate any significant effects of sponsorship announcements on the stock prices of sponsoring firms, suggesting that shareholders' reactions to this business activity are limited. Originality/value -This is the first research initiative that utilizes a stakeholder approach in examining sponsorship effectiveness. The findings provide evidence that shareholders do not perceive sport sponsorships as business investments due to limited information provided by the sponsoring firms. In addition to theoretical and practical implications, the study proposes a new methodological approach in evaluating the impact of sport sponsorship. Multiple regression models applying bootstrap techniques to avoid data distribution and small sample problems are recommended.

- by Rodoula Tsiotsou
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- Marketing, Olympic Games, Stakeholder Theory, Business and Management
- by Aleksandra Koltun and +2
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- Event Management, Local Government and Local Development, Local Development, Events management

Prior research examining the role of financial intermediaries in reducing the problems of information asymmetry has reported that borrowers experience a positive share price reaction to credit agreement announcements. However, it is generally acknowledged that these studies have the potential for a reporting bias because they use only one source of information for credit agreement announcements. To examine this reporting bias, we distinguish between "published" and "non-published" announcements in Australia. We find that borrowers' share prices react positively to announcements that are published in both the financial press and by a dedicated information provider. No statistically significant reaction is observed for the non-published credit agreements.

- by David Woodliff and +1
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- Economics, Event Study, Statistical Significance, Bank Loans
- by HAKAN TURKKUSU
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- Marketing, Intercultural Communication, Tourism Marketing, Festivals and music

This article considers the global phenomenon of festivals, which have become the object of study in many sciences, such as sociology, anthropology, geography or a new discipline called event studies. As a particular social phenomenon occurring at a designated time and space, referring to a broadly understood human culture and associated with celebration and fun, festivals have been present in human life since antiquity. In the course of their evolution, they have become more and more diversified. The largest number and variety of festivals was recorded in the second half of the 20th c. The festival boom, observed at that time and lasting until the present day, was caused by a number of reasons. They included social and economic factors, new technologies and the development of pro-ecological attitudes. At present, festivals are a permanent and, so it seems, necessary part of social life. Due to their social and economic role, they have become an interesting object of study. The author decided to contribute to this research trend by presenting the festival concept based on the existing literature and by offering his own definition. Further he describes the historical evolution of the phenomenon of festivals and focuses on the causes of their rapid development in the 20th c. At the end, he presents the main types of contemporary festivals.

- by Waldemar Cudny
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- Cultural Geography, Festivals and music, Events management, Event Studies

a b s t r a c t IT failures abound but little is known about the financial impact that these failures have on a firm's market value. Using the resource-based view of the firm and event study methodology, this study analyzes how firms are penalized by the market when they experience unforeseen operating or implementation-related IT failures. Our sample consists of 213 newspaper reports of IT failures by publicly traded firms, which occurred during a 10-year period. The findings show that IT failures result in a 2% average cumulative abnormal drop in stock prices over a 2-day event window. The results also reveal that the market responds more negatively to implementation failures affecting new systems than to operating failures involving current systems. Further, the study demonstrates that more severe IT failures result in a greater decline in firm value and that firms with a history of IT failures suffer a greater negative impact. The implications of these findings for research and practice are discussed.

This paper examines two important issues related to bank mergers in India. First, we estimate potential economic gains of state owned banks if they undergo consolidation. Scale economies, returns to scale and profit efficiency of state owned banks during 1986 to 2003 are estimated based on stochastic frontier analysis. We find that many Indian banks exhibit potential cost savings from mergers provided they rationalize their branch networks although profit efficiency may not rise immediately. Second we measure the realized impact of bank mergers on shareholders" wealth based on event study analysis. We find that in the case of forced mergers, shareholders of neither the bidder nor the target banks benefited. In the case of voluntary mergers, the bidder banks" shareholders gained more than the target banks" shareholders.

- by Rudra Sensarma
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- Scale Economies, Financial Services, Event Study, Profitability