White-Collar Crime and Stock Return: Empirical Study from Announcement Effect

Wei, Samuel Siew Liew and Puah, Chin-Hong (2011) White-Collar Crime and Stock Return: Empirical Study from Announcement Effect. [Working Paper]

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Abstract

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: Working Paper
Additional Information: Universiti Malaysia Sarawak, UNIMAS
Uncontrolled Keywords: UNIMAS, 2011, Share Price, Event study, White Coller Crime
Subjects: A General Works > AC Collections. Series. Collected works
A General Works > AC Collections. Series. Collected works

H Social Sciences > H Social Sciences (General)
H Social Sciences > HB Economic Theory
Divisions: Academic Faculties, Institutes and Centres > Faculty of Economics and Business
Depositing User: Karen Kornalius
Date Deposited: 24 Jun 2014 07:50
Last Modified: 04 Aug 2021 02:44
URI: http://ir.unimas.my/id/eprint/3252

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