Responses of Stock Price to the Public Announcement of Forms of Borrowing
Khairul Kabir Sumon and
Md. Sazib Miyan
International Journal of Economics and Finance, 2021, vol. 13, issue 10, 169
Abstract:
This study investigates the question of whether an announcement of bank loan agreement increases the abnormal return. That is, the bank loan agreement conveys some positive information about the borrowing firm. The study used three different event windows (i.e.) two-day, three-day, and five-day windows to check the effect of the announcement for a period of 1995 to 2015. In order to measure the effect, the return has been calculated using the market model, then CARs have been calculated. The study found that CARs is statistically significant for all of the three-event windows. In the two-day window, it is found that abnormal return increases by 15 BPS within these two days, which is almost 19.315% on an annual basis. It is also evident in the study that the effect of the announcement is more on small size firms.
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations:
Downloads: (external link)
https://ccsenet.org/journal/index.php/ijef/article/download/0/0/46009/48989 (application/pdf)
https://ccsenet.org/journal/index.php/ijef/article/view/0/46009 (text/html)
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:ibn:ijefaa:v:13:y:2021:i:10:p:169
Access Statistics for this article
More articles in International Journal of Economics and Finance from Canadian Center of Science and Education Contact information at EDIRC.
Bibliographic data for series maintained by Canadian Center of Science and Education ().