The effect of foreign investment announcements on stockholders' returns : evidence from Singapore
This research examines the effect of foreign investment announcements on the stock prices of companies listed in the Stock Exchange of Singapore (SES) and the Stock Exchange of Singapore Dealing and Automated Quotation (SESDAQ) over the period between 1992 to 1993 . Over 30 companies were used a...
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| Main Authors: | , , |
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| Other Authors: | |
| Format: | Final Year Project |
| Language: | English |
| Published: |
2015
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| Subjects: | |
| Online Access: | http://hdl.handle.net/10356/63993 |
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| Institution: | Nanyang Technological University |
| Language: | English |
| Summary: | This research examines the effect of foreign investment announcements on the
stock prices of companies listed in the Stock Exchange of Singapore (SES) and
the Stock Exchange of Singapore Dealing and Automated Quotation
(SESDAQ) over the period between 1992 to 1993 .
Over 30 companies were used as the sample for this study and the stock prices
were tested for abnormal returns using the mean adjusted return model
proposed by Brown and Warner (1980, 1985). The cumulative abnormal returns
of the stock prices were also studied and tabulated and the time period used
was broken down into various intervals to study the trading implications of
such foreign investment announcements.
From the results, it seems that significant abnormal returns concurs with the
announcements. This suggests that shareholders do enjoy abnormal returns from
such announcements. In our attempt to test the efficiency of the local market,
we also observe that there are traces of semi-strong efficiency.
Since this research topic is relatively new and there could be trading
implications, attention is also given to that aspect. From the results, it appears
that speculators can trade profitably with such announcements. |
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