Market Efficiency and Organizational Corruption: Study on the Impact on Shareholder Value

Renata Miari, José Mesquita and Daniel Pardini
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Renata Miari: FUMEC University
José Mesquita: FUMEC University
Daniel Pardini: FUMEC University

Brazilian Business Review, 2015, vol. Special Issue, issue 2, 1-23

Abstract: With this study, we evaluated the influence of disclosure of the involvement of organizations in corruption on creating value for shareholders. We chose four companies that had their names linked to allegations of corruption in the past 10 years. An event study was used to verify if relevant information tends to be immediately reflected in stock prices. We selected 28 events for analysis and we observed negative and positive variations of the securities in relation to the market, in the days before the disclosure, as in most of the 20 days after publication. However, in cumulative terms, there was a rise in prices over time, returning to levels near those observed before advertising the event. The results indicate that the market did not behave efficiently in this analyzed period.

Keywords: Corruption.; Value; creation.; Stock; market (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (1)

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