Corporate Disclosure Scores and Share Price Reaction: Empirical Study of Indian Listed Firms (Post Satyam Period)

2017 ◽  
Author(s):  
Showkat Ahmad Busru ◽  
G. Shanmugasundaram
Keyword(s):  
Empirical Study ◽  
Share Price ◽  
Corporate Disclosure ◽  
Listed Firms ◽  
Price Reaction

SHARE PRICE REACTION TO CASH DIVIDEND ANNOUNCEMENT: AN EVENT STUDY OF LISTED FIRMS IN KENYA

2019 ◽  
Vol 9 (1) ◽  
pp. 119-127
Author(s):  
George Gikama Muthoni
Keyword(s):  
Event Study ◽  
Descriptive Analysis ◽  
Joint Effect ◽  
Share Price ◽  
Future Research ◽  
Cash Dividend ◽  
Listed Firms ◽  
Price Reaction ◽  
Descriptive Research ◽  
Study Methodology

This study aimed to establish the effect of cash dividend announcement on share price reaction of the firms listed on the Nairobi Securities Exchange (NSE). This study used Event Study methodology with purely secondary drawn data from 24 firms listed on the NSE who meet the study threshold with an event window of eleven (11) days during the year 2008-2013. The study adopted the descriptive research design and sampling de-sign being purposive. STATA version SE12 was used to produce a descriptive analysis. The findings indicate that the share price reaction to dividend announcement is posi-tive for a dividend increase and negative for dividend decrease and constant for the constant dividend. The study therefore recommends that the effect of the dividend on the firm’s share price is very crucial for not only the literature but also for the regula-tion and supervision of the capital market and that further development of accounting standards, increased auditing skills, and advances in investor education will likely make dividends even more important in the future. Following these findings, it would be useful to also consider the following directions for future research on whether there is any joint effect of cash dividend, bonus issues, and right issues on the share price of firms listed on NSE.

scholarly journals The Impact Of Forced Financial Restatements On The Share Prices Of JSE Listed Firms

2012 ◽  
Vol 11 (12) ◽  
pp. 1383
Author(s):  
Shaun Watson ◽  
Johan Coetzee
Keyword(s):  
Stock Exchange ◽  
Abnormal Returns ◽  
Share Price ◽  
Share Prices ◽  
Listed Firms ◽  
Price Reaction ◽  
Johannesburg Stock Exchange ◽  
Financial Restatements ◽  
Panel Review ◽  
The Impact

This study investigates the effect of forced financial restatements on the share prices listed on the Johannesburg Stock Exchange (JSE). An event study methodology is used to examine the share price reaction of 34 firms that forcefully restated their results following a GAAP Monitoring Panel review. The results indicate that the equity of 79.1 per cent of the firms decreased as a result of the restatement. The average standardised abnormal returns for 55.9 per cent of these firms were also found to be negative. The study further finds that the volume of shares traded directly following the announcement increased substantially, especially five days following the announcement. The study makes a contribution to the existing literature in that is the first of its kind to focus on the share price reaction of forced financial restatements on share prices in the South African context.

Share Price Reaction to Earnings Announcement on the JSE-ALTX

2011 ◽  
Author(s):  
Jan Walters Kruger ◽  
Vatiswa Mlonzi ◽  
Meiya Gert Nthoesane
Keyword(s):  
Share Price ◽  
Earnings Announcement ◽  
Price Reaction

The impact of intellectual capital on firm performance: a study of Indian firms listed in COSPI

2018 ◽  
Vol 19 (5) ◽  
pp. 935-964 ◽  
Author(s):  
Neha Smriti ◽  
Niladri Das
Keyword(s):  
Firm Performance ◽  
Intellectual Capital ◽  
Value Creation ◽  
Generalized Method Of Moments ◽  
Value Added ◽  
Secondary Data ◽  
Share Price ◽  
Content Type ◽  
Listed Firms ◽  
The Impact

Purpose The purpose of this paper is to examine the effect of intellectual capital (IC) on financial performance (FP) for Indian companies listed on the Centre for Monitoring Indian Economy Overall Share Price Index (COSPI). Design/methodology/approach Hypotheses were developed according to theories and literature review. Secondary data were collected from Indian companies listed on the COSPI between 2001 and 2016, and the value-added intellectual coefficient (VAIC) of Pulic (2000) was used to measure IC and its components. A dynamic system generalized method of moments (SGMM) estimator was employed to identify the variables that significantly contribute to firm performance. Findings Indian listed firms appear to be performing well and efficiently utilizing their IC. Overall, human capital had a major impact on firm productivity during the study period. Furthermore, the empirical analysis showed that structural capital efficiency and capital employed efficiency were equally important contributors to firm’s sales growth and market value. The growing importance of the contribution of IC to value creation was consistently reflected in the FP of these Indian companies. Practical implications This study has robust theoretical grounds and employs a validated methodology. The present study extends knowledge of IC among academicians and managers and highlights its contribution to value creation. The findings may help stakeholders and policymakers in developing countries properly reallocate intellectual resources. Originality/value This study is the first study to evaluate IC and its relationship with traditional measures of firm performance among Indian listed firms using dynamic SGMM and VAIC models.

Australian Biotechnology: A 10-Year Study of Investor Performance

2021 ◽  
Vol 26 (4) ◽  
Author(s):  
Peter L. Molloy ◽  
Lester W. Johnson ◽  
Michael Gilding
Keyword(s):  
Drug Development ◽  
Global Financial Crisis ◽  
Critical Mass ◽  
Share Price ◽  
Annual Growth Rate ◽  
Compound Annual Growth Rate ◽  
Listed Firms ◽  
Investor Returns ◽  
The Global Financial Crisis ◽  
The Impact

A recent study assessed the investor performance of the Australian drug development biotech (DDB) sector over a 15-year period from 2003 to 2018. The current study builds on that research and extends the analysis to 2020, using a 10-year period starting 2010, to exclude the impact of the global financial crisis in 2008/09. Based on a value-weighted portfolio of all 41 DDB firms, the overall sector delivered a negative annualized return of -4.1%. Individual firm performance was also assessed using the compound annual growth rate (CAGR) in share price over the period as a measure of investor outcomes. On this basis 68% of firms produced negative CAGRs over the period, and of the 32% of firms that produced positive CAGRs, six firms produced CAGRs greater than 20% per annum and in three cases of recently-listed firms, the CAGR’s were greater than 50%. Overall however, the sector overall delivered very poor investor returns and despite a relatively large number of listed biotech firms, Australian biotechnology continues to be small and weak in terms of its contribution to global biotechnology industrialization. As such it lacks the critical mass to grow a robust bioeconomy based on drug development, which remains the standard-bearer of biotechnology industrialization.

Power Distance, Political Uncertainty, and Stock Price Crash Risk: International Evidence

2021 ◽  
Author(s):  
Qiaoling Su ◽  
Xunchang Zhang ◽  
Jianming Ye
Keyword(s):  
Stock Price ◽  
Power Distance ◽  
Cultural Dimensions ◽  
Crash Risk ◽  
Corporate Disclosure ◽  
National Elections ◽  
Political Event ◽  
Listed Firms ◽  
Political Events ◽  
The Government

This study tests the effect of unbalanced power distance (PD) (i.e., Hofstede’s cultural dimensions PD index) and individual stock price crash risk. We examine the stock price behavior of listed firms in 37 countries from 2004 to 2016 and use multivariate analyses to document that societal PD is important in explaining firms’ propensity to release accounting information. This propensity suggests a psychological tendency regarding timing management, particularly for bad news. As countries with large PD prefer to keep things under control, the result is fewer unexpected stock price crashes during the long windows between election events. However, because large-PD countries focus their markets on maintaining temporary peace before and during periods of political events (i.e., national elections), crash risk increases after the political event window. Consistent with these predictions, we find that in large-PD countries, companies generally have less incentive to hide negative information and thus generate stock price crashes. This situation is substantially changed during the postpolitical windows, when firms and ways of spreading information are more controlled by the government. Our findings suggest that formal mechanisms alone are insufficient to explain the behaviors of corporate disclosure that are entangled with informal instruments.

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