This paper treats the question about how the internationally established company, Apple, is affected by intern or extern events when it comes to the trade market. The purpose of the study is to investigate if chosen events create abnormal return on Apples stock market. The chosen research area is Steve Jobs three sick-listings, It-bubble and the purchase of the search engine company Siri. The reason of writing about this is the big interest for the stock market and its function. This study methodological starting position is quantitative done by an event study, with qualitative feature done by an interview with an expertise within this area. When analyzing the empirics, we have used the efficient market theory that says that information should not affect the stock market in the degree that abnormal return creates. Beyond that theory, we have used former research "Stock prices and top management changes" written by Jerold B. Warner and Ross L. that got abnormal return when they did an event study about CEO changes, "CEO change and firm performance in large corporations: succession effects and manager effects", Randolph P. Beatty och Edward J. Zajac. that means that the stock prices affect is different depending on if the shareholders is more prepared to the information, "The stock market psychology" there Gyllenram refers to his theory about people projecting their thoughts and feelings to each other that creates big movements on the stock market and "Beyond Greed and Fear", Shefrin H. that while his study discovered a new theory that he called "the opposite strategy", meaning that a high positive volatility is comply with a negative volatility by the same value. Shefrin also note that new information makes overreaction and vice versa. The conclusion that we can make by this research is that new shocking information has led to overreaction, exactly like Shefrin points out. That means that older information makes less volatility, and we can see this by studying Steve Jobs three sick-listings. The efficient market theory was adaptable on these three events, because abnormal return did not occur. However, we got abnormal return on the other two events, Siri and the It -bubble. We could associate these answers to Shefrin´s theory about overreaction when new information gets public.
| Identifer | oai:union.ndltd.org:UPSALLA1/oai:DiVA.org:sh-10393 |
| Date | January 2011 |
| Creators | Becanovic, Irena, Masoura, Louisa |
| Publisher | Södertörns högskola, Institutionen för ekonomi och företagande, Södertörns högskola, Institutionen för ekonomi och företagande |
| Source Sets | DiVA Archive at Upsalla University |
| Language | Swedish |
| Detected Language | English |
| Type | Student thesis, info:eu-repo/semantics/bachelorThesis, text |
| Format | application/pdf |
| Rights | info:eu-repo/semantics/openAccess |
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