Significant abnormal negative returns

Assignment Help Financial Management
Reference no: EM13525896

Research on socially irresponsible firms and firm value. Looked for articles in major news agencies on companies who have been irresponsible, then looked at their stock price for the seven days leading up to the article and seven days following the article to see if there were statistically any abnormal differences in prices.

Some firms had significant abnormal negative returns, but most didn't. Abnormal negative returns were short lived, meaning their stock prices returned to normal after a short period of time.

Why would that be? can you find some negative articles on companies and tell me if their stock price suffered in the short run and long run?

Reference no: EM13525896

Questions Cloud

Explain analysis of dna sample from animal tissue : Upon digestion and analysis of DNA sample from animal tissue, there are almost always equal amounts of purines and pyrimidines. Explain why this is so.
Complexity of networks in international relations : Does his argument make sense and what is the most compelling part of his argument? What is the least compelling?
Explain the molar absorptivity for compound a : The molar absorptivity for compound A is 739 at wavelength 1 and 461 at wavelength 2. The molar absorptivity for compound B is 319 at wavelength 1 and 266 aw wavelength 2.
Obtain the distance along the ground : An airplane with a speed of 77.1 m/s is climbing upward at an angle of 70.4 ° with respect to the horizontal. When the plane's altitude is 861 m, Calculate the distance along the ground
Significant abnormal negative returns : Some firms had significant abnormal negative returns, but most didn't. Abnormal negative returns were short lived, meaning their stock prices returned to normal after a short period of time.
Find the component of the cannonballs velocity : A cannon tilted upward at 26° fires a cannonball with a speed of 105 m/s. What is the component of the cannonball's velocity parallel to the ground
Nobody has proven that ufos did not cause crop circles : Identify the error in causal reasoning in the following example: Nobody has proven that UFOs did not cause crop circles.
What is the categorical imperative : What is the categorical imperative? Using examples, explain what life would be like if you always followed the categorical imperative?
Patterson cell beads results in an energy output : James Patterson uses electric current passed through nickel and palladium coated beads to claim that his Patterson cell “beads” results in an energy output two hundred times greater than what he put into it.

Reviews

Write a Review

Financial Management Questions & Answers

  Compute net paid holidays worked for a full-time employee

the metropolis health system managers are also working on their budgets for next year. each manager must annualize his or her staffing plan, and thus must convert staff net paid days worked to a factor.

  Explain what are the three distribution methods available

What are the three distribution methods available to Annette? Which method should she choose to maximize tax deferral? Based on the appropriate life table, how much would her first required distribution be? When would this distribution happen?

  Determine what is the rational for the federal reserve board

What is the rational for the Federal Reserve Board keeping the federal rate to a nominal rate in recent years. How does this effect the financial markets.

  Preparing financial statements handout

Preparing Financial Statements Handout - The May 31, 20XX, post-closing trial balance for the L&L Accounting Firm appears

  Evaluate the proposal to purchase advanced machine

Calculate the payback period if advanced machine is purchased and calculate the net present value if advanced machine is purchased.

  On 1 march 2013 zentique inc reported its financial results

on 1 march 2013 zentique inc. reported its financial results an extract of the 2012 balance sheet is shown belowin

  Explain how the cash budget and the capital budget relate

Explain how the cash budget and the capital budget relate to pro forma financial statements.

  You have been hired in the finance department at a large

you have been hired in the finance department at a large metropolitan for-profit hospital. your duties are very

  Explain what is the right price for a stock

What is the right price for a stock? Is it book value, liquidation value or simply its market priceat a given moment of time? Would you value a privately-owned company where there is no market value differently than a publicly owned company

  Methods of cost estimation rely primarily on historical data

What methods of cost estimation rely primarily on historical data? Describe the problems an unwary user may encounter with the use of historical cost data.

  What is dengs wacc

Deng Inc. has a target debt-equity ratio of 0.4. It's before-tax  cost of equity is 16 %  and it's before-tax cost of debt is 8%. If the tax rate is 32%, what is Deng's WACC?

  What is trustworthy collateral from the lenders perspective

What is trustworthy collateral from the lenders’ perspective?  Explain whether accounts receivable and inventory are trustworthy collateral

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd