The Evidence on Market Abnormal Returns in Acquisitions on the Warsaw Stock Exchange

2008 ◽  
Author(s):  
Agnieszka Perepeczo ◽  
Katarzyna Byrka-Kita
Keyword(s):  
Stock Exchange ◽  
Abnormal Returns ◽  
Warsaw Stock Exchange

Does Warsaw Stock Exchange value corporate social responsibility?

2016 ◽  
Vol 12 (3) ◽  
pp. 611-622 ◽  
Author(s):  
Jacek Lipiec
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Stock Exchange ◽  
Abnormal Returns ◽  
Future Research ◽  
Public Companies ◽  
Content Type ◽  
Exchange Value ◽  
Warsaw Stock Exchange ◽  
Corporate Social

Purpose This paper aims to examine the performance of corporate social responsibility (CSR) portfolio at the Warsaw Stock Exchange. Design/methodology/approach This paper uses the CSR portfolio of public companies that was selected in a three-step procedure. In total, 23 companies were selected and formed a CSR portfolio that is traded on the Warsaw Stock Exchange under the Respect Index. The Capital Asset Pricing Model (CAPM) is used to compare returns of CSR companies with respect to the market. The performance of this portfolio is measured in the period from 2010 to 2012. Findings This paper finds that the CSR portfolio measured under the Respect Index outperformed market in all time periods from 2010 to 2012. In addition, in 2010, the CSR portfolio exceptionally outperformed the market by almost 80 per cent. In 2011, even though the market was down, the CSR portfolio reported lesser losses: −0.93 vs −1.73 per cent. In the following year, the market regained and the CSR portfolio again outperformed the market by 14 per cent. This paper also finds that the CSR portfolio is more sensitive to systematic risk than to specific risk. In addition, the CSR securities move according to the market trend. Research limitations/implications The limitation of this paper is attributed to a cause-and-effect relationship. In other words, it did not answer whether adopting CSR led to higher profitability or profitability reflected an awareness of market conditions that favored the adoption of CSR. The future research should focus on this issue and indicate whether investors prioritize CSR over profits or vice versa. Practical implications The results indicate that investments in CSR portfolio companies bring abnormal returns to investors. In addition, the CSR portfolio may resist market downturns and even bring exceptional profits to investors. Originality/value This study explains the CSR portfolio’s performance on the Warsaw Stock Exchange by using the CAPM.

scholarly journals The Influence of Currency Risk Upon the Market Value of Commercial Banks Operating in the Polish Banking Sector

e-Finanse ◽  
2015 ◽  
Vol 11 (4) ◽  
pp. 57-63
Author(s):  
Zbigniew Korzeb
Keyword(s):  
Exchange Rate ◽  
Commercial Banks ◽  
Banking Sector ◽  
Stock Exchange ◽  
Abnormal Returns ◽  
Market Value ◽  
Warsaw Stock Exchange ◽  
Floating Exchange Rate ◽  
Credit Portfolio ◽  
The Impact

Abstract The objective of the paper is to analyse the impact of the Swiss National Bank’s decision to introduce the floating exchange rate of the franc on January 15th, 2015, upon the market value of commercial banks operating in the Polish banking sector. The analysis involved twelve commercial banks quoted on the Warsaw Stock Exchange. The results are inconclusive. The predicted reduction of the banks’ market value was less significant than indicated by market investors’ reaction on the day after the announcement of the decision to introduce the floating exchange rate of the franc. The banks most prone to granting credit denominated in CHF did experience the largest reduction of their share quotations. However, the Pearson product-moment correlation coefficient calculated for the correlation between the average cumulative abnormal returns on shares for the entire analysed sample, and the proportion of credits denominated in Swiss francs in the total credit portfolio, indicated only a moderate correlation between both variables.

scholarly journals Impairment of Assets and Market Reaction during COVID-19 Pandemic on the Example of WSE

Risks ◽  
2021 ◽  
Vol 9 (10) ◽  
pp. 183
Author(s):  
Bartłomiej Lisicki
Keyword(s):  
Market Reaction ◽  
Stock Exchange ◽  
Abnormal Returns ◽  
Economic Downturn ◽  
Main Task ◽  
Main Hypothesis ◽  
Warsaw Stock Exchange ◽  
Study Methodology ◽  
Crisis Conditions ◽  
The Impact

The main task of the article is to examine the impact of the reported impairment of assets (IoA) on the market reaction of investors on the Warsaw Stock Exchange [WSE] in the crisis condition caused by the COVID-19 pandemic. There is a need to verify whether the disclosure of this information in the period of economic downturn will cause a similar negative reaction as in previous topics in this area. Research undertaken in this article helps identify the rules of behaviour (in the short term) whether the reaction of investors on updating the company’s assets in crisis conditions is different than in times of prosperity. The main hypothesis will be verified using the event study methodology. It allows to verify whether the upcoming information about IoA during the COVID-19 pandemic confirms an existence of statistically significant negative abnormal returns. Based on the 55 cases of current reports informing about IoA, which were submitted to the investors in the year 2020 and finally qualified for the research sample, I have not observed statistically significant negative abnormal returns on the adjacent days. The results are different from those obtained by researchers who study the market reaction to the IoA under non-crisis conditions of the economy.

scholarly journals REASSESSING POLISH IPO UNDERPRICING AND UNDERPERFORMANCE

2015 ◽  
Vol 1 (310) ◽  
Author(s):  
Joanna Lizińska ◽  
Leszek Czapiewski
Keyword(s):  
Initial Public Offerings ◽  
Stock Exchange ◽  
Abnormal Returns ◽  
Ipo Underpricing ◽  
Public Offerings ◽  
Warsaw Stock Exchange ◽  
The Difference ◽  
Term Performance ◽  
Long Term Studies

The purpose of the research was to assess the price behavior of initial public offerings (IPO) of equities listed on the Warsaw Stock Exchange from 1996 to 2010. We also aimed to observe IPO underpricing and the underperformance phenomenon with different approaches. Short-term performance was analyzed with raw and adjusted initial returns. For the long-term, abnormal returns were compounded and cumulated. Different methods of outliers detection and ways of minimizing the detrimental effect of outliers were applied. In long-term studies, we also compared the results for the daily, weekly and monthly returns. IPO underpricing and underperformance on the WSE still remains substantial and significant, even accounting for the variety of methods applied. The difference in underpricing between the 1996–2004 and the 2005–2010 sample was insignificant. However, we reported statistically significant and economically important differences in underperformance between both samples.        

RELATIONSHIP BETWEEN MARKET VALUE OF INDUSTRIAL COMPANIES LISTED ON WSE WITH CURRENT REPORTING OF IMPAIRMENT OF ASSETS

2020 ◽  
Vol 21 (1) ◽  
pp. 91-106
Author(s):  
Bartłomiej Lisicki
Keyword(s):  
Stock Exchange ◽  
Abnormal Returns ◽  
Public Companies ◽  
Event Window ◽  
Market Values ◽  
Industrial Companies ◽  
Signed Rank ◽  
Warsaw Stock Exchange ◽  
Study Methodology ◽  
Event Study Methodology

The main purpose of this paper was the examination how the announcement report including information about assets write off has an influence on the market values joint stock companies. To this end applied an event study methodology created by Fama. Research has been performed by the case of industry companies listed on Warsaw Stock Exchange. For each announcement of these companies between 2013 and 2018 was made seven-day event window whereby counted day abnormal returns. The results of the calculation have indicated statistically significant values (confirmed by Wilcoxon signed-rank tests and modified t test) of abnormal returns in the day of announcement and the next day. That may be provide proofs that impairment of assets has a influence on short term returns of public companies. In the next days (until fifth day after announcement) of event window results do not show correlations.

scholarly journals Price adjustments on the Johannesburg Stock Exchange for unexpected and dramatic news events: An empirical analysis

1989 ◽  
Vol 20 (3) ◽  
pp. 119-128 ◽  
Author(s):  
N. Bhana
Keyword(s):  
Empirical Analysis ◽  
Stock Exchange ◽  
Abnormal Returns ◽  
Short Term ◽  
Johannesburg Stock Exchange ◽  
Price Adjustments ◽  
Weak Evidence ◽  
News Events ◽  
One Year

The objective of this study is to determine whether companies listed on the Johannesburg Stock Exchange overreacted to unexpected favourable and unfavourable company-specific news events during the period 1970 - 1984. The JSE appears to be inefficient in reacting to the announcement of unfavourable news; economically significant abnormal returns up to one year following the event are observed. The JSE does not appear to overreact to news of a favourable nature, there is only weak evidence of short-term overreaction. The selling pressure caused by panic selling could depress prices well below levels justified by the unfavourable news. The magnitude of the overreaction to unfavourable news is sufficient to enable astute investors to outperform the market by taking positions in these securities. Knowledge of the pattern of market overreaction can also be of value to investors for transactions that are to take place anyway.

scholarly journals The Corporate Social Responsibility of Polish Energy Companies

Energies ◽  
2021 ◽  
Vol 14 (13) ◽  
pp. 3815
Author(s):  
Magdalena M. Stuss ◽  
Zbigniew J. Makieła ◽  
Agnieszka Herdan ◽  
Gabriela Kuźniarska
Keyword(s):  
Corporate Social Responsibility ◽  
Literature Review ◽  
Social Responsibility ◽  
Stock Exchange ◽  
Energy Sector ◽  
Study Approach ◽  
Csr Strategies ◽  
Warsaw Stock Exchange ◽  
Corporate Social ◽  
Energy Companies

If corporate social responsibility (CSR) is expected to work efficiently, there should be a standardised approach for implementation of the CSR concept for all businesses, including companies operating in the energy sector. Although many companies declare compliance with CSR standards, further investigation should be undertaken to evaluate if and how those standards have been applied in practice. The aim of this research is to examine the level of standardisation of the CSR activities within Polish energy companies and explore the good practices developed by those companies. The Polish energy companies have been selected for the investigation as the literature review we conducted demonstrates that there is limited research in this area and there is a knowledge gap regarding how Polish energy companies apply CSR regulation in practice. To accomplish the stated aims, the following research questions were developed: (1) What is the essence of applying the CSR concept in Polish energy companies, and at what level of development is the concept applied? (2) To what extent do Polish energy companies have a common approach to the CSR concept, and in what areas are there differences? (3) To what extent have Polish energy companies applied global CSR standards and solutions? (4) Is there a gap between the declared measures of CSR and their actual implementation in Polish energy companies? The research methodology of this study is based on a systematic literature review of the sources acquired from databases such as ProQuest, Emerald, SCOPUS and the Jagiellonian University Library. The multiple case study approach was identified as the most suitable research tool. Companies for the study were selected according to their affiliation to the energy sector and listing on the main market of the Warsaw Stock Exchange. These two assumptions allowed us to base this study on the largest Polish energy companies that have international status. Six areas of CSR annual report disclosures have been identified and used for the investigation and analysis. This research looks at similarities and difference between these six aspects of CSRs disclosed by Polish energy companies. The investigation allows us to conclude that the top three energy companies use similar tools to build their CSR strategies: formalised CSR concept, published CSR reports, disclosure of CSR information on the company website, CSR related activities offered to stakeholders, obtained CSR certificates, and CSR awards. This indicates the existence of a standardised approach to CSR across Polish energy companies.

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