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Stock Market Price Effect of the Silicon Valley Bank Failure – A Pre and Within Analysis

Authors :
Collins C Ngwakwe
Source :
Облік і фінанси, Iss 2(100), Pp 75-82 (2023)
Publication Year :
2023
Publisher :
Institute of Accounting and Finance, 2023.

Abstract

State-chartered commercial bank – Silicon Valley Bank (SVB) was the primary subsidiary of SVB Financial Group. In March 2023, after central bank–endorsed interest rate hikes during the 2021–2023 inflation surge, there was a bank run on its deposits, which led to its collapse. This marked the third-largest bank failure in U.S. history and took place alongside the March 2023 United States bank failures. This paper evaluated the differential effect of Silicon Valley Bank failure on the stock market. Two objectives were pivotal, namely the examination of differential stock price performance of SVB prior to failure. Secondly is the examination of the differential effect of SVB failure on the US S&P500 stock price performance. Applying a t-test statistics for difference in means, the results show a significant difference in mean stock price of SVB between a month and two weeks period before SVB failure at P

Details

Language :
German, English, Russian, Ukrainian
ISSN :
23079878 and 25181181
Issue :
2(100)
Database :
Directory of Open Access Journals
Journal :
Облік і фінанси
Publication Type :
Academic Journal
Accession number :
edsdoj.ff7324f564f642d7b73f5c381b9fa48e
Document Type :
article
Full Text :
https://doi.org/10.33146/2307-9878-2023-2(100)-75-82