Insurer Stock Price Responses to Hurricane Floyd: An Event Study Analysis Using Storm Characteristics

2004 ◽  
Author(s):  
Bradley T. Ewing ◽  
Scott E. Hein ◽  
Jamie Brown Kruse
Keyword(s):  
Event Study ◽  
Stock Price ◽  
Study Analysis ◽  
Hurricane Floyd ◽  
Storm Characteristics

scholarly journals Insurer Stock Price Responses to Hurricane Floyd: An Event Study Analysis Using Storm Characteristics

2006 ◽  
Vol 21 (3) ◽  
pp. 395-407 ◽  
Author(s):  
Bradley T. Ewing ◽  
Scott E. Hein ◽  
Jamie Brown Kruse
Keyword(s):  
Event Study ◽  
Stock Price ◽  
Market Value ◽  
Hurricane Floyd ◽  
Negative Effect ◽  
Study Methodology ◽  
Insurance Firms ◽  
Storm Characteristics ◽  
National Hurricane Center ◽  
Event Study Methodology

Abstract This research uses an event study methodology to examine the effect of Hurricane Floyd and the associated scientific and media releases on the market value of insurance firms. The research is unique in that information describing the development of the storm over time and space is incorporated to determine how the financial market reacted to changing news about a storm's characteristics. Key empirical results can be summarized as follows. Overall, there was a negative effect on insurer stock price changes around the synoptic life cycle of the storm; however, this effect was neither constant nor was it always negative on each day of the cycle. Significant market reaction to the news concerning the path and strength of the storm prior to the storm landfall was found. The results herein suggest that markets find reliable time-sensitive reports provided by the National Weather Service, the National Hurricane Center, and other media outlets to be valuable information.

The influence of title sponsorships in sports events on stock price returns

2015 ◽  
Vol 16 (2) ◽  
pp. 37-56 ◽  
Author(s):  
Masaki Kudo ◽  
Yong Jae Ko ◽  
Matthew Walker ◽  
Daniel P Connaughton
Keyword(s):  
Stock Returns ◽  
Event Study ◽  
Stock Prices ◽  
Stock Price ◽  
Abnormal Returns ◽  
Study Analysis ◽  
Sports Events ◽  
Price Increases ◽  
Event Date ◽  
The Impact

The purpose of this study was to examine stock price abnormal returns following title sponsorship announcement and event date of NASCAR, the PGA Tour, and the LPGA Tour. For this purpose, the authors used event study analysis where the analysis measures the impact that a specific event has on stock prices by comparing actual stock returns to estimated returns (Spais & Filis, 2008). An event study analysis demonstrated that title sponsors for the LPGA Tour and NASCAR garnered significant stock price increases on both the announcement date and the event date. The moderator tests suggested that high image congruence and high-technology related sponsorships assumed a key role in stock price increases.

scholarly journals Reaksi pasar modal Indonesia terhadap peristiwa virus Corona

2021 ◽  
Vol 5 (1) ◽  
pp. 43-58
Author(s):  
Khaulis nia hidayah Khaulis
Keyword(s):  
Event Study ◽  
Capital Market ◽  
Stock Price ◽  
Sampling Technique ◽  
Study Analysis ◽  
Analysis Method ◽  
Samples And Sampling ◽  
Research Period ◽  
Observation Period

This research uses the event study analysis method (evet study), the research period used for 44 days with the observation period used in this study is t-3 (the day before the announcement) and t + 3 (the day after the announcement) coronavirus events enter Indonesia. The sample in this study focused on the CSPI during the observation period in the form of daily stock price closing data. The events examined were non-economic events, namely the Coronavirus or covid 19 that affected the capital market. The population in this study are all companies listed on the IDX on the LQ45 index. The sampling technique in this study uses accidental sampling. In accidental sampling that is the determination of samples based on coincidence or anyone who happens to meet with researchers can be used with samples and sampling is not determined in advance, so researchers simply collect data from sampling units that are met or already exist.    

scholarly journals Hang in There

2020 ◽  
Vol 20 (285) ◽  
Author(s):  
Jorge Chan-Lau ◽  
Yunhui Zhao
Keyword(s):  
Event Study ◽  
Stock Price ◽  
Economic Recovery ◽  
Study Analysis ◽  
Exit Strategy ◽  
Fiscal Stimulus ◽  
Policy Responses ◽  
Cross Country ◽  
The Difference ◽  
The Impact

The COVID-19 pandemic prompted unprecedented economic stimulus worldwide. We empirically examine the impact of a withdrawal of fiscal stimulus policies on the stock markets. After constructing a database of withdrawal events, we use event study analysis and cross-country regressions to assess the difference between the pre- and post-event stock price returns. We find that markets react negatively to premature withdrawals—defined as withdrawals at a time when the daily COVID cases are high relative to their historical average—likely reflecting concerns about the withdrawal impact on the prospects for economic recovery. The design of a successful exit strategy from COVID-19 policy responses should account for these concerns.

Financial institutions mergers: a strategy choice of wealth maximisation and economic value

2020 ◽  
Vol 12 (4) ◽  
pp. 495-529
Author(s):  
Mohamad Hassan ◽  
Evangelos Giouvris
Keyword(s):  
Credit Risk ◽  
Event Study ◽  
Financial Institutions ◽  
Value Creation ◽  
Economic Value ◽  
Abnormal Returns ◽  
Study Analysis ◽  
Event Window ◽  
Content Type ◽  
Merger Announcement

Purpose This study Investigates Shareholders' value adjustment in response to financial institutions (FIs) merger announcements in the immediate event window and in the extended event window. This study also investigates accounting measures performance, comparison of post-merger to pre-merger, including several cash flow measures and not just profitability measures, as the empirical literature review suggests. Finally, the authors examine FIs mergers orientations of diversification and focus create more value for shareholders (in the immediate announcement window and several months afterward) and/or generates better cash flows, profitability and less credit risk. Design/methodology/approach This study examines FIs merger effect on bidders’ shareholder’s value and on their observed performance. This examination deploys three techniques simultaneously: a) an event study analysis, to estimate and calculate abnormal returns (ARs) and cumulative abnormal returns (CARs) in the narrow windows of the merger announcement, b) buy and hold event study analysis, to estimate ARs in the wider window of the event, +50 to +230 days after the merger announcement and c) an observed performance analysis, of financial and capital efficiency measures before and after the merger announcement; return on equity, liquidity, cost to income ratio, capital to total assets ratio, net loans to total loans, credit risk, loans to deposits ratio, other expenses and total assets, economic value addition, weighted average cost of capital and return on invested capital. Deal criteria of value, mega-deals, strategic orientation (as in Ansoff (1980) growth strategies), acquiring bank size and payment method are set as individually as control variables. Findings Results show that FIs mergers destroy share value for the bidding firms pursuing a market penetration strategy. Market development and product development strategies enable shareholders’ value creation in short and long horizons. Diversification strategies do not influence bidding shareholders’ value. Local bank to bank mergers create shareholders’ value and enhance liquidity and economic value in the short run. Bank to bank cross border mergers create value for bidders’ in the long term but are associated with high costs and higher risks. Originality/value A significant advancement over the current literature is in assessing mergers, not only for bank bidders but also for the three pillars FIs of the financial sector; banks, real-estate companies and investment companies mergers. It is an improvement over current finance literature because it deploys two different strategies in the analysis. At a univariate level, shareholder value creation and market reaction to merger announcements are examined over short (−5 or +5 days) and long (+230 days) windows of the event. Followed by regressing, the resultant CARs and BHARs over financial performance variables at the multivariate level.

Impact of ETF Listing on the Returns Generated by Underlying Stocks: Indian Evidence

2021 ◽  
pp. 0258042X2199101
Author(s):  
Prabhdeep Kaur ◽  
Jaspal Singh
Keyword(s):  
Event Study ◽  
Abnormal Returns ◽  
Price Impact ◽  
Exchange Traded Funds ◽  
Study Analysis ◽  
Jel Codes ◽  
Securities Transaction Tax ◽  
Underlying Stocks ◽  
Transaction Tax ◽  
The Impact

The advent of exchange traded funds (ETFs) has rendered index trading much affordable compared to their futures counterparts. The present study attempts to examine the impact of ETF listing on the price of the constituent securities of the index that it aims to track. The sample comprises of all the equity ETFs listed in India from 1 January 2002 to 31 March 2019. Event study analysis has been used to examine whether listing of ETFs bore any price impact on the constituent stocks of ETFs. To account for robustness, both parametric and non-parametric tests have been employed. The estimates obtained from event study analysis revealed that the constituent stocks generated insignificant returns for the period extending from January 2002 to March 2009 and April 2009 to March 2013 but positive and significant cumulative average abnormal returns (CAARs) post ETF listing for the period ranging from April 2013 to March 2019, thus providing evidence in support of positive price impact. The permission granted to pension funds, insurers and Employees’ Provident Fund Organisation (EPFO) to invest their funds in ETFs as well as reduction in Securities Transaction Tax (STT) account for the observed price differential. An analysis of the factors accounting for the variation in valuation effects ascertained that the stocks that were traded thinly prior to ETF listing and those forming part of ETFs with larger asset base experienced positive price impact following ETF listing. JEL Codes: G11, G14

Market reactions to the inclusion of people with disabilities

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Claudia Araceli Hernández González
Keyword(s):  
Event Study ◽  
Stock Prices ◽  
Stock Price ◽  
Abnormal Returns ◽  
People With Disabilities ◽  
Market Reactions ◽  
Content Type ◽  
Study Methodology ◽  
Research Advance ◽  
The Impact

PurposeThis study aims to provide evidence of market reactions to organizations' inclusion of people with disabilities. Cases from financial journals in 1989–2014 were used to analyze the impact of actions taken by organizations to include or discriminate people with disabilities in terms of the companies' stock prices.Design/methodology/approachThis research is conducted as an event study where the disclosure of information on an organization's actions toward people with disabilities is expected to impact the organization's stock price. The window of the event was set as (−1, +1) days. Stock prices were analyzed to detect abnormal returns during this period.FindingsResults support the hypotheses that investors value inclusion and reject discrimination. Furthermore, the impact of negative actions is immediate, whereas the impact of positive actions requires at least an additional day to influence the firm's stock price. Some differences among the categories were found; for instance, employment and customer events were significantly more important to a firm's stock price than philanthropic actions. It was observed that philanthropic events produce negative abnormal returns on average.Originality/valueThe event study methodology provides a different perspective to practices in organizations regarding people with disabilities. Moreover, the findings in this research advance the literature by highlighting that organizations should consider policies and practices that include people with disabilities.

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