The long estimation window used in this study is because it included the y-intercept and slope of the prices in calculating the expected return when the market model is chosen to evaluate the abnormal return (Wong, 2011). There is a study of Brockett, Chen and Garven mentioned that the beta in the market model varies over the time and was used to account for the temporal changes in the return process (Pynnonen, 2005). Besides that, the event window suggested in the study of Teall (as cited by Phua & Liew, 2011) is typically 30 days before and after the event. Therefore, the length of the event window in this study will follow to the literature. 3.4.1.2 Establish firm selection criteria Next, choose an appropriate sample of firms experiencing the event is important when conducted the event study. From the official website of Security Commission Malaysia, there are a total of 48 announcements from a total of 38 companies. A total of 8 companies were involved in more than one announcement, therefore each of these companies is counted in one announcement which is its initial respective announcement (Phua & Liew, 2011). Likewise, one of eight companies was involved three announcements and the other seven companies were involved two announcements within January 1996 to December 2012. After filtering the data, the final sample is shown in the following table. Table 1: Final Sample of Target Companies with Respective Announcement Dates Target Company Announcement Date Repco Holdings Berhad Seal Incorporated Berhad Pilecon Engineering Berhad Chase Perdana Berhad Kiara Emas Asia Industries Berhad Fountain View Development Berhad Polymate Holdings Berhad Megan Media Holdings Berhad Welli Multi Corporation Berhad Mems Technolog... ... middle of paper ... ...ing event studies. The Journal of Risk and Insurance. 57(2). 282-306. Teall, J. (2012). Chapter 4: Event studies and back testing. Financial Econometrics modeliing. (lecturer notes) Retrieved dec 18, year, from Voon, M. L., Voon, S. L., & Phua, C. H. (2008). An empirical analysis of the determinants of corporate crime in Malaysia. International Applied Economics and Management Letters. 1(1). 13-17. Cronovich, R. (2007). Principles of Economics (4th edition). N. Gregory Mankiw. USA [power point] http://www.socsci.uci.edu/~mouyang/princ-ch28-presentation Mishkin, F. S. (2009). The Economics of Money, Banking & Financial Markets (2nd edition). (publisher: Addison Wesley) http://wps.aw.com/wps/media/objects/7529/7710171/appendixes/ch07apx.pdf Lin, J. L. (2010). Event study analysis (lecturer note of Research Methods in Finance 2010) http://faculty.ndhu.edu.tw/~jlin/
Brue, S. L., Flynn, S. M., & McConnell, C. R. (2011).Economics principles, problems and policies. (19 ed.). New
of events which I am going to look at to see if there was a single
Today, worldwide, there are several thousands of crimes being committed. Some don’t necessarily require a lethal weapon but are associated with various types of sophisticated fraud, this also known as a white-collar crime. These crimes involve a few different methods that take place within a business setting. While ethical business practices add money to the bottom line, unethical practices are ultimately leading to business failure and impacting the U.S. financially.
Why does white collar and corporate crime tend to go undetected, or if detected not prosecuted? White collar and corporate crimes are crimes that many people do not associate with criminal activity. Yet the cost to the country due to corporate and white collar crime far exceeds that of “street” crime and benefit fraud. White collar and corporate crimes refer to crimes that take place within a business or institution and include everything from tax fraud to health and safety breaches. Corporate crime is extremely difficult to detect for many reasons.
Phil Angelides, B. T.-E. (2011). The Financial Crisis Inquiry Report. Washington: U.S. Government Printing Office.
A. C. Pigou, Review of the Fifth Edition of Mashall's Principles of Economics (socsci.mcmaster.ca) The Economic Journal, volume 17, 1907, pp. 532-5
The foundation of our country, the keystone to our democratic system, is the integrity of social institutions that we not only assume we can trust but have come to rely on for most aspects in our daily lives. The integrity of these social institutions can only be achieved through building blocks such as internal controls and independent, verifiable information. White collar criminals build a sense of false integrity around them in order to gain the trust of their victims, ranging from the young to the very old. Friedrich’s (2010) Trusted Criminals defines the foundation to white collar crime, the level of trust we have for those in power. We trust those in charge, those with power, and those who represent the integrity of our social institutions.
Binhammer, H. H. & Peter S. Sephton. Money, Banking and the Financial System. Nelson, 2001.
According to Perold (2004), ‘CAPM can be served as a benchmark for understanding the capital market phenomena that cause asset prices and investor behavior to deviate from the prescript...
Examining the monthly stock market and trading volume over forty years shows that higher volume in trading follows months with higher returns (Statman et al., 2006). This inevitably causes overconf...
Keynes, J.M., (1936). “The General Theory of Employment, Interest and Money”, London: Macmillan (reprinted 2007).
Stock market prediction is the method of predicting the price of a company’s stock. It is believed that stock price is lead by random walk hypothesis. Random walk hypothesis states that stock market price matures randomly and hence can’t be predicted. Pesaran (2003) states that it is often argued that if stock markets are efficient then it should not be possible to predict stock returns. In fact, it is easily seen that stock market returns will be non-predictable only if market efficiency is combined with risk neutrality. On the other hand it is also been concluded that using variance ratio tests long horizon stock market returns can be predicted....
Block, S. B., & Hirt, G. A. (2005). Foundations of financial management. (11th ed.). New York: McGraw-Hill.
Sullivan, A., & Steven M., (2003). Economics: Principles in action. Upper Saddle River, New Jersey : Pearson Prentice Hal
Studying Banking and Finance at University of St.Gallen will help me further increase my proficiency of corporate finance and financial markets. The in-depth research of specific topics, as well as a comprehensive curriculum, is a possibility for me to focus on my topic of interest ...