This study investigates whether different acquisition strategies provide dissimilar abnormal returns forthe bidders’ investors before, during and after the financial crisis. The study focuses on acquisitionsconducted by banks between 2004 and 2012. The data is split in a pre-, mid-, and post-crisis sample.The dataset consists out of 950 completed acquisitions conducted by 378 unique banks. Crosssectionalresults point out that investors are generally indifferent to which acquisition strategy is usedby banks, both at announcement and at completion. Moreover, it seems that investors do not reactfiercer to the announcement compared to the completion of a deal. The results are robust whensplitting the sample in acquirers originating from common- and code law countries. However, the studyfinds that opposed to what is suggested by prior research, shareholders from code law countries earnhigher returns than shareholders from common law countries.

Understanding the financial value resulting from IS security investments is critically important to organizations focused on protecting service confidentiality, integrity, and availability in order to preserve firm revenues and reputations. Quantifying the financial effect from IS security investments is difficult to derive. This study investigated the relationship between e-banking investments in IS security and their market value impacts. Using an event study approach, the author captured e-banking firm specific data and isolated the IS security effect through the measured change in market values. The author hypothesized that announcements of IS security investments would result in statistically significant changes in market values. The author also hypothesized two sub-segments of the selected security investment data, technology and people, would support statistically significant changes in the market values of e-banking service providers. The hypotheses were tested by measuring stock market reactions to the IS security announcements selected from an eight-year period (2003-2010). Study findings indicated statistically significant market reactions for e-banking firms making IS security investment announcements and suggested that investors rewarded IS security technology investments more highly than e-banking firms making IS security people-focused investment announcements. The author concluded that because investors understand that mandatory regulatory compliance represents an e-banking firm's commitment to creating a secure computing environment, e-banking information systems are perceived as secure therefore, disclosing IS security investments results in weak changes to market values. Ultimately effective management of IS security requires acceptance of the idea that it is not technically feasible or financially viable to implement protections for all identified IS security risks therefore IS security investments must be effectively measured and risk levels consciously selected in order to implement the right technical and operational protections to support a firm's selected risk posture. The study contributes to the event study literature as well as the literature examining the economic effects of information systems security.

The Class Action Fairness Act of 2005 (CAFA) was signed into law on February 18, 2005. Prior to CAFA, plaintiffs found it easier for class action lawsuits to be tried in their preferred venue—state courts. Changes introduced by CAFA practically removed the majority of class action jurisdiction from state to federal courts. Since law and regulation might serve as an external corporate governance mechanism, an interesting question is whether CAFA has strengthened or weakened corporate governance. If CAFA improves corporate governance, associated marginal benefits would outweigh marginal costs. The opposite would be true if CAFA weakens corporate governance. This issue was hotly debated in the US Congress. The proponents argued that CAFA would reduce costs for the affected firms, while opponents argued the opposite. The main purpose of this paper is to examine which side of the debate is reflected in market reactions to various events that either enhanced or reduced the chances of the passage of CAFA. We identify the firms that are most likely to be affected by CAFA and find that the overall market reaction for these firms is positive when the likelihood of CAFA passage increases, while the reaction has been negative when the chance of its passage diminishes. We also hypothesize that firms that are more likely to be exposed to product liability litigation would experience a significantly higher (positive or negative) abnormal return than firms that are more likely to be involved in contract liability law suits. The results support this hypothesis. We also examine potential factors that might explain cross-sectional variations in abnormal returns and find that duality of Chairmanship and CEO has negative impact, while the

As práticas de governança corporativa visam mitigar os problemas oriundos da relação de agência, que surgem quando há a separação entre propriedade e controle da empresa. A Bovespa, no final do ano de 2000, introduziu o conceito de níveis diferenciados de práticas de governança corporativa, em que as empresas, para obter um dos selos (Nível 1, Nível 2 ou Novo Mercado), devem seguir determinadas regras de práticas de governança. Esta dissertação tem como objetivo analisar se os preços das ações das companhias brasileiras possuem relação com sua decisão de adotar um dos níveis diferenciados de práticas de governança corporativa da Bovespa, divulgadas por meio de anúncios em jornais ou por adesão (por meio do registro) a um dos níveis de governança corporativa diferenciada na Bovespa. A pesquisa abrange o período de janeiro de 2001 a janeiro de 2006. Busca-se, dessa forma, aferir a eficiência informacional do mercado na forma semiforte. Essa análise é realizada por meio do retorno anormal das ações, considerando-se duas datas distintas de evento: a primeira como sendo a data em que ocorreu o anúncio em jornais da adesão a um dos níveis diferenciados de governança corporativa, constituindo a amostra da ?Data do Anúncio?; e a segunda, como a data oficial do registro junto à Bovespa a um dos níveis de governança, constituindo a amostra da ?Data de Adesão?. A metodologia consiste em um estudo de evento para se determinar o retorno anormal médio ( AR ) e o retorno anormal médio acumulado (CAR ) das amostras ao longo da janela do evento. Ao mesmo tempo, é elaborado um modelo multivariado que procura verificar o impacto de certas variáveis qualitativas (ADR, ELE, PRIV e FAM) no retorno anormal das ações. Os resultados referentes à amostra da Data do Anúncio indicam uma reação positiva do mercado com relação ao anúncio de migração a um dos níveis diferenciados de governança corporativa da Bovespa, principalmente próximos à data do evento. Nesse contexto, as variáveis qualitativas não apresentaram influências estatisticamente significantes no retorno anormal. Já com a amostra da Data de Adesão, não houve evidências de retornos anormais médios positivos e estatisticamente significantes ao longo da janela do evento, e as variáveis qualitativas também não revelaram influências estatisticamente significantes no retorno anormal. Esses resultados corroboram para a teoria de Eficiência informacional de Mercado na sua forma semiforte, uma vez que a informação de migração a um dos níveis já fora divulgada pela empresa na Data do Anúncio (antes da data oficial de adesão). / Corporate Governance practices? aim is to mitigate the problems originated from managerial agency issues, which arise when corporate ownership and its control are detached. In the end of the year 2000, Bovespa (São Paulo Stock Exchange) introduced the concept of differentiated corporate governance practices levels (Level 1, Level 2 or ?Novo Mercado?). In order to enter one of these levels the companies had to adhere to certain rules related to corporate governance practices. The goal of the dissertation herein is to analyze if Brazilian stocks? price is affected by the company?s decision to adopt Bovespa corporate governance practices differentiated levels, which are released via newspaper announcements or via adherence (through registration) to one of Bovespa?s corporate governance distinguished levels. Research encompasses the period between January 2001 and January 2006. The dissertation, therefore, seeks to detect the market information efficiency under the semi-strong format. The analysis is based on stocks? abnormal return, considering two distinct event dates: the first being the date of the adherence announcement in the newspapers, constituting the ?Announcement Date? sample; and, the second, Bovespa?s official registration date in one of the governance levels, constituting the ?Adherence Date? sample. Methodology consists of an event study to determine the average abnormal return ( AR ) and the average accumulated abnormal return (CAR) of the samples during the event?s window. Meanwhile, a multivariate model is developed in order to verify the impact of certain qualitative variables (ADR, ELE, PRIV and FAM) on the stocks? abnormal return. The Announcement Date sample results indicate a positive reaction from the market regarding the migration announcement to one of Bovespa?s differentiated corporate governance levels, especially in the proximity of the event date. In this scenario, the qualitative variables statistically did not present significant influence in the abnormal return. In the Adherence Date sample, however, there were no evidences of positive average abnormal returns and statistically significant throughout the event´s window. Moreover, the qualitative variables did not reveal statistically significant influence in the abnormal return. These results corroborate with the informational market efficiency theory in the semi-strong format, since the information concerning the migration to one of the levels had already been published in the Announcement Date (which took place before the official adherence date).

This thesis investigates the impact of the reform of the split share structure on the Chinese capital market. It adopts an event study methodology to examine the share price performance around the announcements of the reform and its predicted determinants, the type and level of consideration by using a sample of the top 300 companies listed in the combined Shanghai Stock Exchange (SSE) and Shenzhen Stock Exchange (SZSE). I find the three-day cumulative abnormal returns (CAR) to be negative and significant around government announcement of the reform on 29 April 2005, but the three-day CAR around company???s announcement of the reform to be positive and significant. I attribute this change of sentiment by the market to the release of information about the reform process concerning features such as type and level of consideration. I also regress the company???s CAR on the type and level of consideration and find evidence to suggest that type of consideration matters, where investors prefer payment of shares from capital reserves or retained profits, cash, warrants or any combination of these methods as opposed to payment of shares from non-tradable shareholders. However, I observe no relation between level of consideration and CAR. I interpret this reaction to be that investors perceive that the consideration level is fair and reasonable based on the company???s financial and operating conditions. These results imply that the reform of the split share structure exerts a positive impact on a company???s share price and the extent of impact is a function of the type of consideration.

Bakgrund: Det primära syftet med ett kreditbetyg är att tillhandahålla information till kreditgivare och investerare angående ett företags återbetalningsförmåga. Kreditbetyget baseras både på publik och privat information och bör därför vid publicering påverka priserna på både kreditmarknaden samt aktiemarknaden under förutsättning att dessa är semieffektiva marknader. Syfte: Syftet är att studera hur aktiekurserna för samtliga företag på Stockholmsbörsen, som erhåller kreditbetyg från S&P, påverkas vid en förändring av företagets kreditbetyg samt outlook. Genomförande: Uppsatsens syfte besvaras genom att undersöka aktieavkastningen i samband med publiceringen av ett förändrat kreditbetyg. Vi har använt oss utav en event study för att isolera och testa eventuell abnorm avkastning. Slutsatser: Av de totala antal tester som vi har utfört finner vi att endast en bråkdel av dessa är signifikanta på 10 % eller lägre. För att med säkerhet fastställa att ett förändrat kreditbetyg påverkar aktieavkastning hade en signifikant abnorm avkastning på 1 % nivå önskats för en majoritet av testerna. Således finner vi inte några starka bevis för att en förändring av kreditbetyg påverkar aktiekurser på den svenska marknaden. Detta indikerar att de svenska företagen betalar för en tjänst som aktiemarknaden inte värdesätter.

Blockbuster and Netflix are two firms in the home video rental market that experienced vastly different outcomes. Netflix vastly increased its firm value while Blockbuster lost its dominant market position and slid into bankruptcy. This paper examines the strategies pursued by Blockbuster and Netflix and the impact these strategies had on firm value. This paper finds that on average Blockbuster’s strategies did not have a significant impact on its firm value while Netflix’s strategies increased its firm value. Specifically, Netflix’s strategies in the areas of service improvement and promotional activity created the most value. The strategies each firm pursued in product line expansion provided value for Blockbuster but reduced value for Netflix.

The UK competition authorities are responsible for regulating company mergers that were originally considered to have adverse effects that were “against the public interest”, or presently that could result in a “substantial lessening of competition”. The research in this thesis examines wider economic side effects of this regulatory policy that fall outside the remit of the competition authorities. Data on 63 merger cases that were subject to the merger regulatory process by the UK competition authorities between 1989 and 2002 are studied for effects on two economic aspects, shareholder value and managers’ motivations to undertake mergers. Some previous studies have suggested that competition regimes can destroy shareholder value. The research in this thesis confirms the finding from earlier studies of greater gains to shareholders in target rather than bidding companies, but does not find evidence supporting overall loss of shareholder value to target company shareholders when a merger is prohibited. It finds evidence that when the regulatory regime is stable and well understood the capital market behaves efficiently in response to new information. However, for a sub group of the mergers involving companies with a new regulatory regime, of which industry and the market had little or no experience with respect to mergers, the capital market operated less efficiently. A number of studies have also considered the motivation of managers to follow a merger strategy. Apparently, none has looked at the influence of competition regulation on merger motives using stock market data and event study techniques. This research examined data for the stock market’s perceptions of what motivated managers to pursue their initial merger bid. The findings suggest that Synergy and Hubris dominate as motivations for mergers and that, unintentionally, competition policy may help to reduce the number of mergers motivated by Managerialism.

The concept of asymmetric information is probably best described by medieval idiom to buy a pig in a poke or to buy a cat in a sack, and is a long standing issue in a market economy. A solution to this predicament, is thought to be an objective third party certifier who would provide true information for the market participants. Credit Rating Agencies (CRAs) by all definitions act as such certifiers within financial markets and have been on the public spotlight for the last years. In both cases, the US subprime mortgage crisis and the EU sovereign debt crisis, the agencies were charged for miss-information on quality of financial products, that led to financial losses for the investors or debtors. Theoretical deduction suggest that certain market reaction to CRA announcements may indicate  if markets perceive CRAs themselves as selling a cat in a sack to the investors. Event study approach is employed to investigate how do sovereign debt market react to CRA announcements. The results suggest that sovereign debt market reaction is more pronounced if three major CRAs issue clustered announcements, and more actively react to following announcements as opposed to the leading ones.

The purpose of this thesis is to identify key factors underlying exchange rate developments during the European sovereign debt crisis by examining the impact of credit rating news, published by the three leading credit rating agencies, on conditional returns and volatility of EUR/USD (direct quotation) exchange rate. Empirical results highlight the importance of interest rate differential and volatility index of options exchange in explaining EUR/USD exchange rate volatilities. Downgrade announcements by Standard & Poor’s as well as watch revisions by Fitch Ratings had a detrimental impact on the value of Euro, leading to a subsequent Euro depreciation over the period under consideration (January 2009 – April 2012).