This paper is aimed at identifying the events of stock market and making a case study of one of the events. Many studies were carried out for the events of stock market. Study was made on the influences of stock splits and stock prices by Dolley (1933). Publication of papers in the leading business journals indicate that the event studies were done by Myers (1948), by Barker (1956), (1957), (1958) and by Ashley (1962). Event studies were introduced to the financial experts and managers through two papers first by Ball Brown in 1968 and second by Fama et al in 1969. The methodology of studying events of the capital markets have developed and advanced manifold since then and yet the two papers of Brown and Fama provide the core elements of an event. MacKinlay (1997) The market model developed by Ball Brown and Fama contributed in their success. Their model was patterned after the Capital Asset Pricing Model (CAPM) developed in 1964 by Sharpe. The data from the Center for Research in Security Prices (CRSP) at University of Chicago was used by Ball Brown and Fama which also made it a standard source for research for the entire capital markets. The development of computer hardware and statistical analytical software and its increasing access and usage also played important role in the success of event studies. The key issues of capital structure market were made prominent by papers of Modigliani and Miller (1958), (1961) and (1963) which made studies of event a key empirical tool. The events that can impact capital market include declaration of dividends or earnings, splits of stock, mergers of two or more companies, listings of new companies in exchanges, initial public offerings (IPO) and changes of people at key management positions. The impact of such events can be underreaction, overreaction, abnormal returns and reversals. Corrado (2011) Literature Review There are many types of event studies in the literature such as examination of Return Variances by Beaver (1968), and Patell (1976), studies on volume of stock trading by Beaver (1968) and Campbell and Wasley (1996), analyzes of operating performance by Barber and Lyon (1996) and management of earnings through discretionary accruals by Dechow, Cloan, and Sweeney (1995) and Kothari, Leone, and Wasley (2005). However our paper is focused only the mean stock prices. Corrado (2011) The researches during past thirty years have not changed the basic statistical format and it still concentrate around the measurement of mean and cumulative mean of abnormal return before and after the event. The only major changes that took place are the periods of the data for which mean is calculated. Earlier data of returns were used on monthly basis but today data are used on daily and intraday basis. This helps in measuring the abnormal returns more accurately and determines its effects more descriptively. The second change which has come in the event studies is in the ways of estimating the abnormal returns for events that are long-horizon. The new development of French 3 factor model in pricing asset by Fama also brought some changes in event studies methodology. In spite of these changes, there are serious limitations in the methods of long-horizon and extreme caution is required while making any inferences from it. (Kothari and Warner, 1997, p.301) The model of event study constitute examination of behaviour of the stock
Event Studies and the Measurement of Abnormal Returns Introduction Event is the occurrence of any such activity that impacts its environment and triggers many other activities and happenings. It is a continuous process of everybody’s life. Some events are very common such as birth of a child, death of a beloved one, marriage ceremonies, etc…
Thus a test was conducted to assess the anomalies of the stock market by Eugene Fama to detect the market inefficiencies. In this study different portfolios were tested resorting to the market capitalization of each market within stipulated time span. However, according to the normality test only 1% significance level was detected.
The symptoms of PTSD that can be diagnosed include the re-experiencing of the real trauma through nightmares, flashbacks, increasing the arousal, and staying away from the stimuli that is linked to the trauma (Burgress, & Holmstrom, 2009). A diagnostic criterion that is formal, demands that the symptoms, and effects last for a period longer than a month (Boeschen, Sales, & Koss, 2008).
Measurement can be considered to be one of the world’s more practical discoveries and is present in almost everything that individuals involve themselves in (Emerson 46). It also plays a large role in various industries and is an essential part of the calculations that take place in their activities.
In order to conduct such an investigation, the relationship, method of event study, and other key factors will be utilized within this process. Before delving into the research, it is necessary to integrate an understanding of key background information. This includes the background of IHG and a brief statement of four special informational events which will be analyzed.
In order to conduct such a level of investigation, the relationship, method of event study, and other key factors will be utilized within this process. Before delving into the research, it is necessary to integrate an understanding of key background information.
The author suggests that if an investor purchases some shares in his home country i.e. and also includes in his portfolio a number of shares from international countries like the United States and European countries, the risk associated with both the investments would be different based upon the various political, economic and investment factors.
These symptoms are closely related to transsexualism. In some countries, gender dysphoria is described as a mental illness. Gender identity disorder is classified as a medical disorder by DSM-IV-TR and ICD-10-CM. This paper will discuss the gender identity disorder by
In the area it is well-known for its branded wide range of product from golf attires, clubs, shoes and accessories. This article aims at evaluating the marketing strategies used in the sale of golf shoes at Windmill Lake Golf club
4 pages (1000 words)Essay
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