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Purpose: This study aims to understand investors' reactions to news on fraud and pecuniary and regulatory action in privately owned and government-owned banks. Design/methodology/approach: To examine the role of ownership holdings, this study deploys event study methodology and cross-sectional regression to analyze the abnormal returns and the intergroup dynamics. Event study methodology studies the abnormal return on stock prices on days when fraud, pecuniary actions and regulatory news were reported for 36 banks that are listed on the NSE. Data on news has been collected from Reuters for 110 months. Cross-sectional regression analyses are done to examine whether selected variables on bank characteristics influence the abnormal returns. Exploring the intergroup dynamics between government and privately owned banks helps to accentuate how stakeholders influence investor responses. Findings: Private and government-owned banks display an anomalous return pattern during the events, though to varying degrees and for a longer duration. The sharp downturn observed in private banks in response to pecuniary and regulatory actions related to news can be attributed to the associated risk of these banks. Intergroup dynamics further demonstrate that the effect of such news regarding government-owned bank stocks is more pronounced on privately owned banks compared to the effect of news related to privately owned banks on public banks. Originality/value: The study shows how ownership structure variedly impacts investors' response to news related to fraud, and pecuniary and regulatory actions on Indian banks, which may eventually ask for customized investment approaches for government-owned and privately owned banks. [ABSTRACT FROM AUTHOR]

Copyright of Al Bashaer Economic Journal is the property of Al Bashaer Economic Journal and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This research delves into the intricate effects of mergers and acquisitions (M&A) on stock prices within the Saudi Arabian banking sector, employing the event study methodology (ESM) to examine both short-term and long-term impacts on stock valuations. The study meticulously calculates expected and abnormal returns (ARs) around merger events, shedding light on the significant influence these corporate actions exert on market perceptions and investor behavior. The methodology encompasses an analysis of daily stock price data before and after merger events, providing a detailed view of market reactions. Key findings reveal an immediate positive market response to merger announcements, driven by the anticipation of synergistic benefits, alongside diverse long-term stock price effects that underscore the complex relationship between initial expectations and actual merger outcomes. The research concludes that strategic merger planning and effective communication with stakeholders are crucial for realizing the anticipated benefits of mergers. By offering new insights into the sector-specific and regional dynamics that affect M&A outcomes, this study enhances understanding of the significant implications for investors, financial institutions, and policymakers engaged with the Middle Eastern financial markets. [ABSTRACT FROM AUTHOR]

Climate change and extreme weather events have led to a surge in natural hazards in Pakistan that have escalated into humanitarian disasters. While remittances are often central to the livelihood of the most vulnerable, research has produced limited knowledge regarding the role of remittances in time of disaster. This paper investigates the reaction of Pakistani migrants to five major natural disasters via remittances from 1972 to 2023. Using an event‐study methodology, the paper compares the responses of remittances in different host countries namely Gulf Cooperation Council (GCC), Europe & the UK and North America. We provide evidence that remittances intensify in response to climate‐induced disasters, thus representing a reactive mechanism in time of hardship. The response is significant two (one) months after the events for GCC (Europe & the UK and North America) and tends to dissipate 5 months from the disaster occurrence (except for GCC). The intensity and the persistence of remittances' responsiveness (abnormal returns and volatility) depends on the nature of disasters, host countries' features and the economic conditions of migrants. Our findings highlight the need for further understanding the role of remittances as a coping mechanism in the face of environmental hazards to better inform policies geared toward disaster risk reduction. [ABSTRACT FROM AUTHOR]

This study assesses the level of potential insider trading on the Saudi stock market (Tadawul) before and after the introduction of financial reforms. The level of potential insider trading is estimated by employing the market cleanliness measure (MCM) which determines the proportion of significant announcements (SAs) that were preceded by abnormal pre-announcement price movements (APPMs). The analysis was carried out using an event study approach to gauge the impact of an event on a security return. The market model is used to estimate the expected return which is subsequently compared with the actual return. The findings suggest the existence of significant abnormal returns surrounding 128 out of 1,958 unscheduled announcements made by firms listed on Tadawul from 2011 to 2020. The MCM shows that 56.36% of SAs were preceded by APPMs during the pre-financial reforms period whereas the ratio dropped to 45.2% over the post-financial reforms period. Although the findings suggest a reduction in the MCM by 11.16%, the statistics for the subsequent period was not statistically lower than the preceding period. The present study establishes a fundamental basis for tracking the efficacy of new regulations in deterring insider trading activities. This study provides empirical evidence and implications that can be taken into consideration by all parties concerned with illegal insider trading and market integrity.

COVID-19 altered global economics activities during the pandemic period and still affects the stock returns. As worldwide resulted, this shift has changed the Pakistani stock returns activities. This study unfolds the impact of COVID-19 on stock returns frequency of pharmaceutical, power generation, technology and communication, and food sectors in Pakistan. To examine the relationship of above-mentioned sectors with stock returns, data were evaluated through event window that included the event dates of the 150-day and 60-day estimating period. COVID-19 has a considerable detrimental influence on stock returns during the post-event interval. The study findings showcase significant negative relationship with stock returns of the above-mentioned sectors. However, the results are contradictory during the second wave of coronavirus infection. Furthermore, the study also substantiates that COVID-19 has significantly affected the stock market performances of Pakistan. Still, the impact on the stock market performances was only for a short period, and it diminished in the second wave of COVID-19 spread in Pakistan. The findings contribute to the research on the stock returns of selected sectors and commodity market impact of a pandemic by providing empirical evidence that COVID-19 has spill-over effects on stock market. This result also helps investors in assessing the trends of the stock and commodity markets during the pandemic outbreak. Managers are encouraged to modify their strategies to maintain stocks of the firm for better performance under the direction of study findings.

Abstract This paper employs an innovative event study methodology to demonstrate the impact of climate change on the NASDAQ index from the unique perspective of extreme weather events. This is achieved through the application of the event study methodology to a total of 526 biological, climatic, geological, hydrological, and meteorological disasters of climate change occurring in the U.S. during the period of 2000–2019. The results of the study demonstrate that: ① it can be generally observed that the five dimensions of climate change have a significant impact on stock returns. ② Empirical evidence indicates that the impact of different climate change dimensions on the return rate of stocks from NASDAQ stocks varies. In contrast, the biological and hydrological dimensions have a significantly negative impact on the return rate of stocks from the NASDAQ index, while the climate dimension has a significantly positive impact on the return rate of stocks from the NASDAQ index. ③ From the perspective of time, the impact of the five dimensions of climate change on the stock yield exhibits certain non-linear characteristics. This can be observed in the phenomenon of shock reversal, which occurs before and after the event.

This study investigated stock market reaction and the effect of the implementation of Basel II and Basel III on stock returns of South African banks. In achieving this aim, this study focused on daily and annual data of six commercial banks from 3rd January 2004 to 31st December 2022. The event study methodology was employed to identify abnormal returns around the specified event dates. The effect of the changes in Basel capital requirements on stock returns was not uniform across the four events. The market reacted favourably to the implementation of the Basel II requirements in the country. There was a significantly negative market reaction to the subsequent full implementation of Basel III official. Finally, higher Basel capital requirements (CAR) was associated with lower bank stock returns. The findings implied that bank regulators increase capital to strengthen the banking system but constrain the maximisation of shareholders' values. [ABSTRACT FROM AUTHOR]

The aim of this paper is to analyse the effects of the Green Innovation event and corporate announcements regarding green innovation on the stock price of the Automobile Industry and the performance of firms. The authors also aim to assess the impact of these events on business performance and identify the effective innovation strategy influenced by the type of corporate announcement. The study focuses on the corporate announcements made by the automobile industry and their impact on company performance, specifically in relation to the application of green innovation methods. Furthermore, there is no universally agreed upon standard for defining and categorising corporate announcements. The writers also exclude the impact of media and other events that occur during the event window when categorising these announcements. The findings of this study have important practical consequences. They suggest that the release of green innovations, which aim to protect the environment, can have an impact on an organization's stock market success. Specifically, the type of innovation and the trade segment in which the organisation operates can influence its stock market performance. [ABSTRACT FROM AUTHOR]

This paper examines the impact of a firm's Corporate Social Responsibility (CSR) level on abnormal stock returns around merger and acquisitions (M&A) announcements. Using a sample of transactions announced by German DAX-listed acquirers from 2017 and 2022, the analysis assesses whether CSR creates value for acquiring firms' shareholders and offers a comprehensive discussion of potential factors supporting or opposing this notion. Our study seeks to fill a notable gap in the German literature on the relationship between CSR performance and abnormal stock returns surrounding M&A announcements. Building upon prior research findings in the US and in an international sample, our investigation focuses on the German market. Employing event study methodology, our results indicate that M&A transactions of German-listed acquirers did not yield significant negative or positive cumulative abnormal returns for event windows of 3 and 11 days. Furthermore, based on multiple linear regression, no evidence was found that CSR positively or negatively influenced abnormal stock returns following M&A announcements, suggesting that positive and negative effects potentially offset each other. The outcomes of our research have important implications for investors, as CSR initiatives do not serve as a positive trading signal, guaranteeing excess returns, which contrasts findings from previous studies in other developed countries. For managers, it is essential to concentrate on factors beyond CSR performance, such as synergies and fit. Finally, both managers and investors should not view CSR as a shareholder value-enhancing short-term investment but as an integral component of fostering sustainable business development. [ABSTRACT FROM AUTHOR]

COVID-19 altered global economics activities during the pandemic period and still affects the stock returns. As worldwide resulted, this shift has changed the Pakistani stock returns activities. This study unfolds the impact of COVID-19 on stock returns frequency of pharmaceutical, power generation, technology and communication, and food sectors in Pakistan. To examine the relationship of above-mentioned sectors with stock returns, data were evaluated through event window that included the event dates of the 150-day and 60-day estimating period. COVID-19 has a considerable detrimental influence on stock returns during the post-event interval. The study findings showcase significant negative relationship with stock returns of the above-mentioned sectors. However, the results are contradictory during the second wave of coronavirus infection. Furthermore, the study also substantiates that COVID-19 has significantly affected the stock market performances of Pakistan. Still, the impact on the stock market performances was only for a short period, and it diminished in the second wave of COVID-19 spread in Pakistan. The findings contribute to the research on the stock returns of selected sectors and commodity market impact of a pandemic by providing empirical evidence that COVID-19 has spill-over effects on stock market. This result also helps investors in assessing the trends of the stock and commodity markets during the pandemic outbreak. Managers are encouraged to modify their strategies to maintain stocks of the firm for better performance under the direction of study findings. [ABSTRACT FROM AUTHOR]

This study investigated the stock market reaction and the effect of the implementation of Basel II and Basel III on the stock returns of South African banks. In achieving this aim, this study focused on daily and annual data of six commercial banks from 3rd January 2004 to 31st December 2022. The event study methodology was employed to identify abnormal returns around the specified event dates. The effect of the changes in Basel capital requirements on stock returns was not uniform across the four events. The market reacted favourably to the implementation of the Basel II requirements in the country. There was a significantly negative market reaction to the subsequent full implementation of Basel III official. Finally, higher Basel capital requirements (CAR) was associated with lower bank stock returns. The findings implied that bank regulators increase capital to strengthen the banking system but constrain the maximisation of shareholders’ values.

This study assesses the level of potential insider trading on the Saudi stock market (Tadawul) before and after the introduction of financial reforms. The level of potential insider trading is estimated by employing the market cleanliness measure (MCM) which determines the proportion of significant announcements (SAs) that were preceded by abnormal pre-announcement price movements (APPMs). The analysis was carried out using an event study approach to gauge the impact of an event on a security return. The market model is used to estimate the expected return which is subsequently compared with the actual return. The findings suggest the existence of significant abnormal returns surrounding 128 out of 1,958 unscheduled announcements made by firms listed on Tadawul from 2011 to 2020. The MCM shows that 56.36% of SAs were preceded by APPMs during the pre-financial reforms period whereas the ratio dropped to 45.2% over the post-financial reforms period. Although the findings suggest a reduction in the MCM by 11.16%, the statistics for the subsequent period was not statistically lower than the preceding period. The present study establishes a fundamental basis for tracking the efficacy of new regulations in deterring insider trading activities. This study provides empirical evidence and implications that can be taken into consideration by all parties concerned with illegal insider trading and market integrity. Impact Statement: In view of the significance of market integrity and fairness, it is important to identify the consequences of impairments to market integrity and insufficient deterrence of insider trading. The findings of the study may be beneficial in driving regulators' enforcement mechanisms for strengthening market surveillance and combating market misconduct by more actively implementing disciplinary actions. In addition, sequential reviews and assessments have been called for since the launch of Saudi Vision 2030 to ensure the delivery of its financial reform plans. Apart from its policy implications, the study is of interest to policymakers as it offers a foundation for regulatory bodies to determine whether further regulations are needed to strengthen regulatory performance and promote market discipline. Second, the results may be of interest to firms seeking to ensure proper functioning to accurately maintain material-sensitive information and regulate its release through appropriate channels. [ABSTRACT FROM AUTHOR]

Copyright of Journal of Research in Finance & Accounting is the property of Journal of Research in Finance & Accounting and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Theoretical background: A share split is an operation that increases the total number of shares. The split is a technical operation and should not affect the market value of the company. The shareholding structure of the company remains unchanged when the shares are split. However, split studies around the world show the occurrence of abnormal returns. Purpose of the article: The article analyses splits based on market data from 2009 to 2021. The aim of the study is to analyse the cumulative average abnormal returns (CAARs) in the periods preceding stock splits on the Warsaw Stock Exchange (WSE). CAARs are analysed in different research variants. The influence of the stock market situation and the frequency of splits on the amount of abnormal returns is examined. Research methods: The research was carried out using event study analysis. The Market-Adjusted Return Model was used to determine abnormal returns. CAARs were calculated for each analysed event window. The statistical significance of abnormal returns was verified by the parametric t test and the non-parametric Corrado rank test. Main findings: The study showed statistically significant positive abnormal returns in the 30-day period preceding the split. The hypothesis that multiple splits cause particularly high increases in the market value of companies has not been confirmed. Research on the reaction to splits depending on the state of the stock market situation did not allow unambiguous conclusions in the case of the periods when the WSE Index (WIG) increased. Weaker reaction to planned splits in the period of worse market conditions was confirmed.

The aim of the present study is to examine the effect of the events related to the “Panama leaks” on the stock market in Pakistan. For this purpose, we have analyzed a total of 24 events related to the “Panama leaks” in Pakistan. These events are further divided into three broad categories i.e. 8 events are related to the news/statements by the opposition parties, 8 events are related to news/statements by Sharif’s family/sitting governments, and 8 events are related to the news/statements by the Apex court in Pakistan. The analyzed period begins on the 1st of March 2015 and has lasted until the 30th of July 2018. This research applies the event study methodology, and overall findings show that “Panama leaks-related news has a significant impact on stock returns in Pakistan. What is more, all the news related to the Apex court in the Panama leaks show a significant positive impact on stock returns. This study provides a guideline to investors, regulators, policymakers, and other stakeholders by proving that all the news related to the “Panama leaks” have a significant impact on stock returns in Pakistan. Future researchers can extend this study by analyzing the impact of the “Panama leaks” on stock returns in all the countries to which the “Panama leaks” are connected.

AbstractThis study explores the importance of central bank independence on stock market outcomes. Specifically, we examine the effects of President Recep Tayyip Erdogan’s decree, which removes the top officials of the Central Bank of Turkey, on Borsa Istanbul returns. We use a well-established event study methodology for five events from 20 July 2018, to 11 November 2021. The results show that the market is sensitive to the dismissal decrees in that they have positive effects on cumulative abnormal returns in the first two events, while the three events that follow have negative effects on cumulative abnormal returns. Our results support the importance of central bank independence, revealing that political intervention in central banks has a robust, positive, negative, and significant impact on stock market outcomes.

Copyright of BES Journal: International Journal of Business & Economic Studies is the property of BES Journal - International Journal of Business & Economic Studies and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The aim of this paper is to examine the reaction of South Eastern European stock markets to the armed conflict between Russia and Ukraine. With a sample of seven stock market indices, the event study methodology is applied to examine the influence of the conflict between two countries on European ground over stock indices of emerging markets in South Eastern Europe. Results indicate that beginning of the conflict in late February brought a very strong significant price correction and stock markets in the examined countries became maximum oscillatory and subjected to light and rapid changes on a daily level. The findings contribute to the research on economic impact of the armed conflict by providing empirical evidence that conflict between two European (Non-European Union members) countries has spill-over effects on stock markets on other European (European Union members and Non-European Union members) countries. The findings have important implications for portfolio diversification and thus can serve in the asset allocation decision of investment managers.

Mergers and acquisitions performance is akin to financial perplex that researchers have been trying to solve. The objective of the study is to examine the reaction of shareholders to the announcement of mergers and acquisitions in the pre-event, around the event and during the post-event period of the Indian manufacturing firms. The event study research methodology has been used for analysis along with parametric and non-parametric tests. The study shows that investors can earn a significant return if they purchase shares of the acquiring company one day before and sell them one day after the announcement day. The findings concluded that while the announcement of a merger or acquisition generates a positive reaction, this reaction is only temporary and is swiftly diluted. This shows that investors initially overreacted to these announcements and took immediate corrective action. The study recommends to investors, “Earlier the shareholders sell, more the shareholders gains”.

The present study documented the behaviour of stock of the Indian banking sector around the announcements of dividends before and during the global health crisis of 2019. The study considered all the banks in the Indian banking sector that announced the dividend from January 2015 to December 2021 and conducted the analysis using event study methodology with Multi-Index Model (MIM). The study found that during the pre-crisis period, the stock of the PSU banks was more sensitive towards the announcements when dividends were decreased compared to the announcements when it was increased. While the stock of private banks was significantly impacted by both positive and negative dividend announcements, however, the impact of negative dividend announcements was severe and more prolonged than that of positive dividend announcements. Further, during the COVID-19 Pandemic, it is witnessed that information relating to dividend announcements has positively affected the behaviour of the banking sector stock. [ABSTRACT FROM AUTHOR]

Theoretical background: A share split is an operation that increases the total number of shares. The split is a technical operation and should not affect the market value of the company. The shareholding structure of the company remains unchanged when the shares are split. However, split studies around the world show the occurrence of abnormal returns. Purpose of the article: The article analyses splits based on market data from 2009 to 2021. The aim of the study is to analyse the cumulative average abnormal returns (CAARs) in the periods preceding stock splits on the Warsaw Stock Exchange (WSE). CAARs are analysed in different research variants. The influence of the stock market situation and the frequency of splits on the amount of abnormal returns is examined. Research methods: The research was carried out using event study analysis. The Market-Adjusted Return Model was used to determine abnormal returns. CAARs were calculated for each analysed event window. The statistical significance of abnormal returns was verified by the parametric t test and the non-parametric Corrado rank test. Main findings: The study showed statistically significant positive abnormal returns in the 30-day period preceding the split. The hypothesis that multiple splits cause particularly high increases in the market value of companies has not been confirmed. Research on the reaction to splits depending on the state of the stock market situation did not allow unambiguous conclusions in the case of the periods when the WSE Index (WIG) increased. Weaker reaction to planned splits in the period of worse market conditions was confirmed. [ABSTRACT FROM AUTHOR]

Injuries are a frequent risk in sports. This article analyses the repercussions of football players' injuries on the market returns of six European clubs: Ajax, Borussia Dortmund, Manchester United, Olympique Lyonnais, Benfica and Juventus over a period of three years. The originality of this study comes from the absence of scientific articles in this field. Based on the event study methodology, the results indicate that the sensitivity of stock prices to injuries is very low. Furthermore, the results show that the date of injury is a significant variable causing the effect on returns (Borussia Dortmund). However, injury severity, player status and COVID do not influence the price share. [ABSTRACT FROM AUTHOR]

This study employs event study methodology to examine the impacts of China's Resource Tax Law on corporate firms, from the perspective of stock traders. Our results demonstrate that most sectors experience negative market reactions from 41 to 121 trading days around the announcement rather than immediately. Regarding the determinants of market reactions, we find that research and development (R&D) investments are positively related to cumulative abnormal returns. Moreover, our additional tests show that R&D investments have different impacts on various subsamples. Further, the empirical results remain robust when controlling for potential endogeneity issues. [ABSTRACT FROM AUTHOR]

This study explores the importance of central bank independence on stock market outcomes. Specifically, we examine the effects of President Recep Tayyip Erdogan's decree, which removes the top officials of the Central Bank of Turkey, on Borsa Istanbul returns. We use a well-established event study methodology for five events from 20 July 2018, to 11 November 2021. The results show that the market is sensitive to the dismissal decrees in that they have positive effects on cumulative abnormal returns in the first two events, while the three events that follow have negative effects on cumulative abnormal returns. Our results support the importance of central bank independence, revealing that political intervention in central banks has a robust, positive, negative, and significant impact on stock market outcomes. [ABSTRACT FROM AUTHOR]

Purpose: On the basis of gaps in the existing literature on Mergers and Acquisitions in hospitality sector, present study aims to examine the stock behavior (return, volatility & liquidity) of acquirer firms after M&A announcement in the Indian hospitality sector from 1999-2018. Design/Methodology: Market model of event study methodology has been used to examine the change in stock behavior across total sample size of 94 M&A deals (containing 18 mergers and 76 acquisitions) in Indian hospitality sector during sample period. Findings: It is observed that shareholders of acquirer firms in India are able to generate average abnormal return two days before the announcement of M&A event, which indicates that efficient market hypothesis does not hold true in this sector. Whereas, results of stock volatility show that risk for shareholders increase in post-event window as returns are significantly volatile in post-announcement period. Liquidity analysis shows that average abnormal liquidity is significantly high during pre-announcement period. Practical Implications: These findings may contribute to the literature investigating the behavior of stock prices of acquirer's performance in hospitality sector during restructuring events and literature of behavioral finance. Various deal consultants, market regulators, shareholders, research scholars may find these results helpful in understanding the performance of stocks of acquirers in Indian hospitality sector through stock movements around M&A announcements and design their investment strategies accordingly. Originality: The current study emphasized on the market reaction around M&A announcements by capturing stock behavior including stock volatility and liquidity in hospitality sector in India. [ABSTRACT FROM AUTHOR]

The price of stocks is a good indication of investors' expectations for the evolution of capital markets, comprising their fears and hopes regarding future developments. The information regarding a disruptive event such as a military attack spreads rapidly across countries affecting investors' perceptions and causing them to sell their stocks and target safer investments. The scientific literature on the topic is growing lately due to the ongoing Russo-Ukrainian war and its consequences. The research paper investigates the impact of Russia's invasion of Ukraine on the capital markets from the Central and Eastern European region using the event study methodology. The paper studies the abnormal returns recorded by each capital market on the event day (February 24, 2022), as well as the cumulative abnormal returns for 6-day, 11-day and 16-day event windows following the attack. The findings show that most of the capital markets recorded sharp declines on the event-day, reaching a negative abnormal return event of 10% on February 24. For the longer event windows the negative impact persisted through cumulative abnormal returns recorded for most of the markets. The highest declines were recorded on the 6-day and 11-day event windows as all capital markets considered incorporating the bad news of the war outbreak and lost the initial hope of being a disinformation or a short-term military attack. Within 35 trading days following the invasion, 64% of the markets rebounded and returned to their pre-attack level. However, 4 capital markets recorded more than 200 trading days with a level lower than the one registered before the invasion. The paper contributes to literature extending the studies of capital markets' behavior during military conflicts focusing on neighboring countries. [ABSTRACT FROM AUTHOR]

With the recommendation of the Narasimham Committee (1991), the Indian banking sector saw a soar in M&A with the objective of value creation, but the existing literature does not provide any conclusive evidence in respect of value creation for shareholders. Therefore, in the present study, an attempt has been made to investigate whether the M&A announcement generates value to the shareholders or not. By employing event study methodology, the study observed significant negative abnormal returns during the post-M&A announcement period for both overall market and individual banking sector stock. The returns further deteriorated in the long run with significant negative BHAR. Thus, the study concludes that the M&A did not create value to the shareholders; instead, it deteriorate the shareholders' value. [ABSTRACT FROM AUTHOR]

Cross-border acquisitions by Indian companies have increased tremendously, especially during the last two decades, and the pharmaceutical industry is one of the top acquiring industries. This study verifies the relationship between cross-border acquisitions and shareholders' wealth in the Indian pharmaceutical sector. For this purpose, the data related to acquisitions were acquired from 2005 to 2019 and the event study methodology was applied along with two parametric tests. The findings of the current research prescribe that cross-border acquisitions have a positive and significant impact on shareholders' wealth. Furthermore, the outcomes also indicate higher positive abnormal returns in the short run when the targets are based in the US and the UK as compared to the positive but insignificant abnormal returns when the targets are based in locations other than the US and the UK. [ABSTRACT FROM AUTHOR]

Purpose – This paper aims to measure investors' perception of the rights issue announcement of publicly listed companies in five stock markets of Islamic countries. Then, these firms are grouped according to their debt level to examine whether abnormal returns are different from those that are highly leveraged. Moreover, Sharīʿah compatibility of firms is checked to understand if return anomaly shows different behaviour around rights issue announcement days. Design/methodology/approach – The analysis period includes the years 2010–2019, which includes 362 rights issue announcements. The event study methodology is applied to measure the level of impact that is triggered by the rights issue announcements. Hereafter, one-way ANOVA test is performed to identify whether there exists a difference among the sample groups according to their debt level. Findings – Findings suggest that rights issue announcements cause −3.90% fall in share prices on average for the whole sample. However, negative abnormal return is found significant only in Egypt and Turkey. Individual regression analysis results suggest that an increase in debt level worsens the return anomaly only in Egypt. This refers that the rights issue announcement is perceived as less favourable for highly leveraged companies compared to others in this country. Finally, Sharīʿah-compliant companies show better performance compared to non-compliant counterparts around the event dates. Originality/value – This paper is novel in evaluating market reaction during rights issue announcements in multiple Islamic countries. Also, to the best of the authors’ knowledge, this study is the first attempt to compare return behaviour of Sharīʿah-compliant and non-compliant firms around the rights issue announcements.

The outbreak of the novel corona virus has severely impacted the world economy. Along with the challenges imposed on the healthcare sector, the pandemic also affected the performance of all sorts of industries. With many businesses already shut and many more struggling to survive, the overall impact of the pandemic on different sectors of the economy remains a subject of further research. In this paper, the impact of corona virus outbreak on the performance of hotel stock prices in Europe is analysed through an Event Study Methodology. Four major events in the corona virus timeline of Europe between January and May 2020 were considered for the study. For the 15 publicly listed hotels, significantly high negative average abnormal return and the cumulative abnormal return was observed during event 2 and event 3 that occurred on March 11 and March 17 respectively. These two events marked the peak of the outbreak in Europe when the travel and movement restrictions were strictly imposed. The average and cumulative abnormal returns showed signs of positive change during event 4 (May 11) which can be attributed to easing of lockdown in many European countries. Thus, for businesses including hotels to start recovering from their current losses it is required that the restrictions are gradually uplifted, and people start moving towards normalcy in their lifestyle as well as the governments to provide support in the form of stimulus packages. [ABSTRACT FROM AUTHOR]

Purpose – The purpose of this research is to study the impact of divestitures on shareholder wealth. This study covers selloffs of publicly traded companies in Germany, Austria and Switzerland (DACH region) during the period 2002–2018. It aims to understand the overall effect of selloffs on shareholder wealth as well as the impact of important influencing factors. Design/methodology/approach – This study is part of capital market studies which investigate shareholder wealth effects (abnormal returns) using event study methodology. To determine the significance of abnormal returns, a standardized cross-sectional test as suggested by Boehmer et al. (1991) was applied. The sample consists of 393 selloffs of publicly traded companies with a deal value of at least EUR 10m. Findings – The findings confirm the overall positive impact of selloffs on shareholder wealth. The average abnormal return on the announcement day of the sample companies amounts to 1.33%. The type of buyer, the relative size of the transaction as well as the financial situation of the seller in particular seem to influence abnormal returns positively. Originality/value – This study investigates shareholder wealth creation through selloffs in the DACH region, a largely neglected region in divestiture research, but now very relevant due to increasing pressure of active foreign investors. Sophisticated statistical methods were used to generate robust findings, which are in line with the results of similar studies for the US and the UK.

Studying the impact of a sport mega-event on the stock market is an increasingly important area of research in sports economics. In addition to the 'regular' events (announcement of the host city of the Olympic Games and the opening ceremony), Tokyo 2020 Summer Olympics allows for an investigation of the postponement of the Games. Using event analysis in their study, the authors examine the stock market impact of these three events on the shares of 13 companies. In addition, the significance of abnormal returns resulting from such events is tested by presenting parametric and non-parametric procedures, thus filling the gap in the Hungarian literature. The results suggest that the effect of negative news on the stock market is much more intense than that of almost certain positive information. [ABSTRACT FROM AUTHOR]

The purpose of this paper is to examine the linkage between a sample of six oil-importing and oil-exporting MENA countries and oil price shocks over the period 2002–2020. The event study methodology is used to examine the behavior of stock prices around an event to measure its value under the efficient market theory. The findings suggest that the dataset used and the results are robust proven by overall statistically significant results for the eight events considered. The 2008 global financial crisis had the largest impact on stock markets on the event day. The nature and duration of response are also found to vary across different events and countries. Thus the practical implications of this paper are to suggest that investors should learn to better assess oil shocks by taking into account differences in country specific policies, government effectiveness and monetary policy. [ABSTRACT FROM AUTHOR]

The purpose of the research paper is to study the market dynamics of Sensex, the share index in Mumbai, India, and its performance pre-election and post-election, which are considered to be precedented events, and during natural disasters and terrorist attacks, which are unprecedented developments. This paper has measured the impact of six positive and negative events on the Bombay Stock Exchange's 30 share index Sensex. The data is collected from secondary sources focusing on time periods before the dates of the event and time periods after the event. Event study methodology was used to prove the impact of the event on the Indian indices. The study aims to ascertain whether the impact of these events on the indices were significant or not. The application of this study is in terms of clarity to retail investors in the short run, when market may be volatile in terms of prices and returns. Some of the investors may be swayed by projections of election outcomes or other unprecedented events and may try to time the market during that time period. The long-term investor may look at their financial goals and risk profile while choosing stocks for their portfolio, rather than being influenced by swings in the markets. [ABSTRACT FROM AUTHOR]