Intra-Industry Information Transfers and Firm Value: Evidence From Ghana’s Banking Industry

Isaac Quaye, Alfred Sarbah, Joseph Boadi Nyamaah, Mavis Aidoo and Yinping Mu

SAGE Open, 2020, vol. 10, issue 4, 2158244020968087

Abstract: The purpose of this study is to estimate the economic value of intra-industry information transfers within Ghana’s banking industry due to the collapse of seven banks. This is a short-term study with an event window [−10, +10] and an estimation period of 200 trading days. The event study methodology is adopted to estimate the cumulative abnormal return (CAR) gained by other rival industry banks as well as to calculate the cumulative average abnormal return (CAAR) for the entire Ghana Stock Exchange (GSE). The results of the study show that the collapse of the seven banks does convey information that the market uses in revising stock prices. However, most of the rival banks experienced an insignificant share price reaction. This insignificant reaction can be attributed to the fact that GSE is not efficient. The study recommended among others, for the GSE to be reformed to improve the efficiency of the market and secure the flow of information to market participants.

Keywords: event study; Ghana Stock Exchange; abnormal returns; intra-industry information transfers; Bank of Ghana (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/2158244020968087 (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:sae:sagope:v:10:y:2020:i:4:p:2158244020968087

DOI: 10.1177/2158244020968087

Access Statistics for this article

More articles in SAGE Open
Bibliographic data for series maintained by SAGE Publications ().