Using Event Studies to Evaluate Stock Market Return Performance

Using Event Studies to Evaluate Stock Market Return Performance

Dr. Alhassan Ndekugri

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Dr. Gordana Pesakovic

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Allen University

Using Event Studies to Evaluate Stock Market Return Performance

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Abstract

This research used event study methodology to evaluate stock market return performance of three multinational companies using three historical events. The sample of the study consisted of daily historical stock data of the three multinational companies from Yahoo Finance, a month before and a month after the announcement of the November 7, 2000, November 4, 2008, and November 8, 2016 elections. The multinational companies in this study were Exxon Mobil, Toyota Motors, and Gazprom. A t-test was used to examine the significance of the means and stock returns of the three companies and the market index (S&P 500). Also, the Capital Asset Pricing Model (CAPM) was used to determine the abnormal stock return. This analysis was inconsistent with event announcements that state they do have an effect on the stock market returns. The finding showed there was both negative and positive abnormal return in all three historical events. Actual return fluctuates within a period prior and after announcements.

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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

How to Cite This Article

Dr. Alhassan Ndekugri. 2017. \u201cUsing Event Studies to Evaluate Stock Market Return Performance\u201d. Global Journal of Management and Business Research - C: Finance GJMBR-C Volume 17 (GJMBR Volume 17 Issue C5).

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GJMBR Volume 17 Issue C5

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Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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Classification

GJMBR-C Classification JEL Code: E22

Submission ReceivedDecember 7, 2016
Peer Review Double Blind
Handling Editor
Accepted December 31, 2016
Published January 15, 2017

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v1.2

Issue date

October 24, 2017

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Article Matrices

Total Score: 142

Country: United States

Subject: Global Journal of Management and Business Research - C: Finance

Authors: Dr. Gordana Pesakovic, Dr. Alhassan Ndekugri (PhD/Dr. count: 2)

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Total Views: 3530

Total Downloads: 1767

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