White Collar Crime and Stock Return Empirical Study from Announcement Effect

Liew, Samuel Wei-Siew and Puah, Chin Hong and Harry, Entebang (2016) White Collar Crime and Stock Return Empirical Study from Announcement Effect. The Social Sciences, 11 (6). pp. 1079-1085. ISSN 1818-5800

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White-collar crime continues to hit the headlines across Malaysia and it remains a serious issue influencing organizations globally. A share price event study is thus conducted on a group of public listed companies in Malaysia to examine the announcement effect of white-collar crime. The period of the study is from 1996 to 2010, covering both the Asian Financial Crisis in 1997/98 and the sub-prime mortgage crisis in 2008/09. Results indicate the existence of significant negative abnormal share price reaction on 10 trading days subsequent to the day of announcement. It means that the stock market in Malaysia is not efficient. However, it implies that the market possesses the power to discipline unethical companies as the shareholders drive down their value by disposing their stocks following the announcement.

Item Type: Article
Uncontrolled Keywords: Share Price, Event Study; White-Collar Crime, unimas, university, universiti, Borneo, Malaysia, Sarawak, Kuching, Samarahan, ipta, education, research, Universiti Malaysia Sarawak
Subjects: H Social Sciences > H Social Sciences (General)
Divisions: Academic Faculties, Institutes and Centres > Faculty of Economics and Business
Faculties, Institutes, Centres > Faculty of Economics and Business
Depositing User: Karen Kornalius
Date Deposited: 18 Aug 2016 23:04
Last Modified: 08 Feb 2022 01:39
URI: http://ir.unimas.my/id/eprint/13106

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