Corporate Crime Announcement Effects On Stock Performance: An Empirical Study In Malaysia

Voon, Sze-Ling and Puah, Chin Hong and Harry, Entebang (2008) Corporate Crime Announcement Effects On Stock Performance: An Empirical Study In Malaysia. Journal of Economic Cooperation Among Islamic Countries, 29 (2). pp. 15-28. ISSN 1308-7800

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Official URL: https://www.researchgate.net/publication/228389854

Abstract

An in-depth investigation of the effects of announcement of corporate crime on firm performance focusing on stock market performance among public enterprises in Malaysia has been conducted. A sample of 7 large, established public companies charged for committing corporate crime by Securities Commission from the period of 1999 to 2005 in Malaysia were identified and examined. Using the event-study methodology proposed by Rao (1997), monthly average abnormal returns (AARs) and cumulative average abnormal returns (CAARs) for the sample of 8 announcements of separate crimes ranging from 12 months prior to and 6 months after the announcement dates are determined. Empirical result indicates that the stock market is informationally inefficient in Malaysia and investors do react to announcement of corporate crime.

Item Type: Article
Uncontrolled Keywords: Corporate Crime, Firm Performance, stock market, unimas, university, universiti, Borneo, Malaysia, Sarawak, Kuching, Samarahan, ipta, education, research, Universiti Malaysia Sarawak
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD61 Risk Management
Divisions: Academic Faculties, Institutes and Centres > Faculty of Economics and Business
Depositing User: Karen Kornalius
Date Deposited: 25 Sep 2017 03:08
Last Modified: 25 Sep 2017 03:08
URI: http://ir.unimas.my/id/eprint/17762

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