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Corporate Social Responsibility and its effect on stock price : A comparison between different types of Corporate Social Responsibility activities and its effect on American firms´ stock priceMüller, Linnéa, Wikström, Matilda January 2016 (has links)
In today's society there is an increasing globalization. This may create a challenge for publicly- owned firms to make its stocks more attractive in the market for the investors all around the world. One method firms could use to attract new investors is through engagement in Corporate Social Responsibility (CSR) activities; which has in the recent years received a lot of notable attention. On the occasion that there exist different types of CSR activities it would be beneficial for firms to receive broader knowledge about the different impacts that the different activities have on a firm's stock price. Therefore, the purpose of this thesis is to contribute to the literature by investigating if different types of CSR activities have different degree of impact on a firm’s stock price; and if so, which type of activity that would be more preferable for firms to undertake in order to increase their stock price. The effect of a firm’s engagement in CSR activities was studied by the use of an event study. The event study was centered on a firm’s announcements of CSR activities of type environmental, ethical and philanthropic. All the firms considered in the study are American firms and they were all listed on the New York stock exchange (NYSE). The time period used in the study were the years between 2006 and 2016. However, the year of 2008 was excluded because of the financial crisis. To measure whether CSR has an effect on a firm’s stock price a t-test was conducted based on the cumulative average abnormal return (CAAR). A sign test was also performed based on the number of positive CAR’s in the estimation window compared to those in the event window. The cumulative abnormal return (CAR) was also considered in order to draw further conclusions. The study found that a firm’s engagement in CSR did overall, have a positive effect on a firm’s stock price. Further, by studying the results from the various activities; the results show that a firm’s engagement in environmental and ethical CSR activities also have a positive effect on the stock price. Meanwhile, it appeared that philanthropic CSR had no impact on the stock price. To answer the question of which type of CSR activities that is the most beneficial for a firm to engage in if they intend to increase its stock price is to invest in environmental CSR activities.
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Congressional Insider Trading: An Analysis of the Personal Common Stock Transactions of U.S. SenatorsYingling, Scott T 01 January 2011 (has links)
I have examined the common stock investments made by members of the U.S. Senate between 2006 and 2009. I find that the average stock portfolio in the Senate exhibits one and two year cumulative abnormal returns (CARs) of -0.15 % and 0.43%, respectively. This suggests that members of the Senate are not trading on insider knowledge as indicated by one previous researcher who calculated a one year CAR of 25%. However, my findings are in line with another previous researcher who found a one year CAR of about -2% and concluded that Congressmen are not trading on inside information. I also examine election-year trades made by senators who lose a reelection bid. This cashing out effect amounts to a CAR of 0.43% during the first year post loss, but after two years these trades exhibit a CAR of -0.03%. The cashing out group performs no better than the group as a whole, indicating that this group did not use their informational advantage to profit during the lame duck session.
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Discount on private placement and firm characteristicTung, Jui-hsuan 09 July 2010 (has links)
Since its debut in 2002 in Taiwan, private placement has become more and more popular for the corporate to collect capital in the market. However, because of its divergent characteristics and loose regulations, it has also aroused a great number of controversies so far. This study concentrates on the companies collecting capital by private placement from 2002 to 2007 and examines if obvious discount or premium on placement price existed in these cases. In addition, the study also examines the correlation between the degree of placement discount (premium) and firm characteristics. Finally, it will also be discussed if placement discount (premium) causes positive or negative effect on cumulative abnormal return of the firms. The empirical results show that on average a premium exists in placement price in Taiwan. As for firms¡¦ characteristics, financial crisis, free cash flow, and times of placement have a positive correlation with the discount (premium) degree. Two out of three intangible variables also show a positive correlation with the discount (premium). degree. Finally, the degree of discount (premium) is not significantly correlated with long-term cumulative abnormal return of private placed firms.
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Política e finanças : um estudo sobre o impacto das contribuições a campanhas políticas nas empresas brasileirasDavi, Mariana Gesswein January 2016 (has links)
Este trabalho visa identificar possíveis vantagens que as empresas obtêm ao contribuir com campanhas políticas. Para isso, foi utilizada uma extensa base de dados com informações de doações a candidatos aos cargos de deputado, senador e presidente nas eleições de 2006 e 2010. As variáveis de interesse analisadas foram o retorno anormal cumulativo à época da divulgação do resultado das eleições e o retorno sobre o patrimônio líquido no ano posterior a cada eleição. Foram estimadas regressões de dados em painel através de mínimos quadrados ordinários, e incluídos efeitos fixos de ano e setor das empresas. Os resultados indicam que não apenas o mercado antecipa benefícios futuros para as empresas que contribuíram com campanhas – o que se reflete em retornos anormais cumulativos positivos à época da eleição – mas também estas empresas apresentam retornos sobre o patrimônio líquido superiores aos daquelas que não participaram do processo político. Além disso, doações a candidatos vencedores geram retorno superior aos de doações a candidatos perdedores; o que vai ao encontro da hipótese de retribuição de favores. De forma similar, contribuições a candidatos filiados à coligação do presidente eleito também apresentaram impacto superior quando comparadas com doações a candidatos da oposição. / This paper aims to identify potential benefits that companies obtain by contributing to political campaigns. We used an extensive database with information on donations to House, Senate and Presidency candidates in the 2006 and 2010 elections. The variables of interest analyzed were the cumulative abnormal return by the time the results of each election became know and the return on equity in the year following the election. Panel regressions were estimated as ordinary least squares (OLS), and fixed effects of year and industry were included. The results indicate that not only the market anticipates future benefits for companies that contributed to campaigns - which is reflected in positive cumulative abnormal returns at the announcement of the election results - but these companies also have higher returns on equity than those that were not involved in the political process. In addition, donations to winning candidates generate higher returns than donations to losing candidates; which supports the return of favors hypothesis. Similarly, contributions to candidates affiliated to the president’s coalition's also had higher impact when compared to donations to the oposition candidates.
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Política e finanças : um estudo sobre o impacto das contribuições a campanhas políticas nas empresas brasileirasDavi, Mariana Gesswein January 2016 (has links)
Este trabalho visa identificar possíveis vantagens que as empresas obtêm ao contribuir com campanhas políticas. Para isso, foi utilizada uma extensa base de dados com informações de doações a candidatos aos cargos de deputado, senador e presidente nas eleições de 2006 e 2010. As variáveis de interesse analisadas foram o retorno anormal cumulativo à época da divulgação do resultado das eleições e o retorno sobre o patrimônio líquido no ano posterior a cada eleição. Foram estimadas regressões de dados em painel através de mínimos quadrados ordinários, e incluídos efeitos fixos de ano e setor das empresas. Os resultados indicam que não apenas o mercado antecipa benefícios futuros para as empresas que contribuíram com campanhas – o que se reflete em retornos anormais cumulativos positivos à época da eleição – mas também estas empresas apresentam retornos sobre o patrimônio líquido superiores aos daquelas que não participaram do processo político. Além disso, doações a candidatos vencedores geram retorno superior aos de doações a candidatos perdedores; o que vai ao encontro da hipótese de retribuição de favores. De forma similar, contribuições a candidatos filiados à coligação do presidente eleito também apresentaram impacto superior quando comparadas com doações a candidatos da oposição. / This paper aims to identify potential benefits that companies obtain by contributing to political campaigns. We used an extensive database with information on donations to House, Senate and Presidency candidates in the 2006 and 2010 elections. The variables of interest analyzed were the cumulative abnormal return by the time the results of each election became know and the return on equity in the year following the election. Panel regressions were estimated as ordinary least squares (OLS), and fixed effects of year and industry were included. The results indicate that not only the market anticipates future benefits for companies that contributed to campaigns - which is reflected in positive cumulative abnormal returns at the announcement of the election results - but these companies also have higher returns on equity than those that were not involved in the political process. In addition, donations to winning candidates generate higher returns than donations to losing candidates; which supports the return of favors hypothesis. Similarly, contributions to candidates affiliated to the president’s coalition's also had higher impact when compared to donations to the oposition candidates.
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Política e finanças : um estudo sobre o impacto das contribuições a campanhas políticas nas empresas brasileirasDavi, Mariana Gesswein January 2016 (has links)
Este trabalho visa identificar possíveis vantagens que as empresas obtêm ao contribuir com campanhas políticas. Para isso, foi utilizada uma extensa base de dados com informações de doações a candidatos aos cargos de deputado, senador e presidente nas eleições de 2006 e 2010. As variáveis de interesse analisadas foram o retorno anormal cumulativo à época da divulgação do resultado das eleições e o retorno sobre o patrimônio líquido no ano posterior a cada eleição. Foram estimadas regressões de dados em painel através de mínimos quadrados ordinários, e incluídos efeitos fixos de ano e setor das empresas. Os resultados indicam que não apenas o mercado antecipa benefícios futuros para as empresas que contribuíram com campanhas – o que se reflete em retornos anormais cumulativos positivos à época da eleição – mas também estas empresas apresentam retornos sobre o patrimônio líquido superiores aos daquelas que não participaram do processo político. Além disso, doações a candidatos vencedores geram retorno superior aos de doações a candidatos perdedores; o que vai ao encontro da hipótese de retribuição de favores. De forma similar, contribuições a candidatos filiados à coligação do presidente eleito também apresentaram impacto superior quando comparadas com doações a candidatos da oposição. / This paper aims to identify potential benefits that companies obtain by contributing to political campaigns. We used an extensive database with information on donations to House, Senate and Presidency candidates in the 2006 and 2010 elections. The variables of interest analyzed were the cumulative abnormal return by the time the results of each election became know and the return on equity in the year following the election. Panel regressions were estimated as ordinary least squares (OLS), and fixed effects of year and industry were included. The results indicate that not only the market anticipates future benefits for companies that contributed to campaigns - which is reflected in positive cumulative abnormal returns at the announcement of the election results - but these companies also have higher returns on equity than those that were not involved in the political process. In addition, donations to winning candidates generate higher returns than donations to losing candidates; which supports the return of favors hypothesis. Similarly, contributions to candidates affiliated to the president’s coalition's also had higher impact when compared to donations to the oposition candidates.
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Audit Committee Director TurnoverSinghvi, Meghna 11 July 2011 (has links)
Actions by both private sector organizations and legislators in recent years have highlighted the importance of the audit committee of the board of directors of corporations in the financial reporting process. For example, the Sarbanes Oxley Act of 2002 has multiple sections that deal with the composition and functioning of audit committees. My dissertation examines multiple issues related to the composition of audit committees.
In the first two parts of my dissertation, I examine the stock market reactions to disclosures of audit committee appointments and departures in the 8-Ks filed with the SEC during 2008 and 2009. I find that there is a positive stock market reaction to the appointment of audit committee directors who are financial experts. The second essay investigates the cumulative abnormal return to departure of audit committee directors. I find that when an accounting expert leaves the audit committee, the market reaction is significantly negative. These results are consistent with regulators’ concerns related to having directors with audit, accounting and other financial expertise on corporate audit committees.
The third essay of my dissertation examines the changes in audit committee composition in the last decade. I find that while the increase in audit committee size is relatively modest, there has been a significant increase in the number of audit committee experts and the frequency of audit committee meetings over the past decade; interestingly, such increase in the number of meetings has persisted even after the media focus on the auditing profession, in the immediate aftermath of the Enron and Andersen failures, have waned. My results show that audit committee composition and its role continues to evolve with regulatory and other corporate governance related changes.
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Green Bond Influence on Cumulative Abnormal Return in The Swedish Stock Market : A Study of Publicly Listed Swedish Construction and RealEstate CompaniesLiepins, Emils, Abdulrahman, Oubari January 2020 (has links)
Addressing environmental issues has been a top priority in recent years all over the world. There are several options on how to address this problem also from a financial perspective. Therefore, the purpose of this study was to investigate how green bond issuance announcement impacts publicly traded stock prices through cumulative abnormal return (CAR) perspective. We focused our scope only to the Swedish market. Theory is based on three different models: the capital asset pricing model (CAPM), the market model, and the market return model, which all have been applied also in previous studies. Several previous studies indicate that there is a positive CAR around the bond announcement date. In our case findings based on all three models were, that there in fact is evidence of CAR in the Swedish market at different event windows. The strongest relationships were found in event windows five days before the event date and up to twenty days post-event date. These results could be an indicator, that investors are valuating green bonds positively, and therefore for companies it might be beneficial to engage in more environmentally friendly project financing.
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Kungörandet av företagsförvärv, vad händer sedan? : En undersökning på hur bolagens storlek och förvärvsform påverkar abnormal avkastning på kort sikt i samband med kungörandet av ett företagsförvärv för bolag noterade på Stockholmsbörsen. / Announcing an acquisition, what happens next?Beslija, Hasan, Åkesson, Carl January 2021 (has links)
Abstract Title: Announcing an acquisition, what happens next? Authors: Carl Åkesson and Hasan Beslija Supervisor: Katarina Eriksson Background: Sweden is the Nordic region's largest market for M&A. Despite this, there is a limited research base for how acquisitions affect abnormal returns on the Swedish stock market. There is no consensus among previous studies on how the bidding firms are affected in the short run by acquisitions or how the abnormal return is affected by firm size and form of acquisition. Purpose: The purpose of the study is to investigate whether there is an abnormal return in the short run for bidding firms when announcing an acquisition and how it differs between different company sizes and different forms of acquisitions. Methodology: The study is of quantitative nature and has been conducted with a deductive approach. The research questions of this study have been chosen with previous studies in mind. Furthermore, the study has used two methods; event study and regression analysis. In addition to these methods, tests have been carried out with the aim of statistically ensuring the abnormal return that has arisen in the event study. Results: The results of the study show that an announcement of an acquisition leads to a negative average cumulative abnormal return in the short run. For the different company sizes, large cap has the most negative average cumulative abnormal return. For the various acquisition forms, horizontal acquisitions have the most negative average cumulative abnormal return. The study's regression analysis show that company size and acquisition form have a low degree of explanation for the emergence of abnormal returns. Keywords: Abnormal returns, acquisitions, event study, cumulative abnormal return
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Ocenění na trhu elektronického obchodování v rámci srovnání různých systémů ekonomiky / Valuation in electronic commerce market within the comparison of different economy systemZhang, Fan January 2021 (has links)
Abstract In 2019 e-commerce market become one of the most important part to push the global economic growth especially in China and US. In 2020 Covid-19 has widely spread around the world which caused a severe economic crisis, but e-commerce market has gained benefit from it. In this study will discuss how e-commerce will perform in future and how e-commerce reacts and defend in this crisis. This study used method of discounted cash flow to track the fundamental information of EC market as representative of Alibaba and Amazon, also used event study method to test influence of COVID-19 in the whole industry
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