Asia-Pacific Stock Market Reactions To Silicon Valley Bank's Bankruptcy

DOI

10.2991/978-94-6463-585-0_10How to use a DOI?

Keywords

Abnormal Return; Average Abnormal Return; Cumulative Abnormal Return; Event Study

Abstract

Silicon Valley Bank (SVB), a technology-oriented lender headquartered in California, declared bankruptcy on 10 March 2023, which created a worldwide stock market reaction. This study examines the impact of Silicon Valley Bank's bankruptcy news on stock markets in the Asia Pacific area. The research uses an event study methodology to evaluate market responses over five days before and after the bankruptcy announcement. Seven stock indexes, including Japan, Hong Kong, China, South Korea, Australia, Taiwan, and India, were analyzed in terms of their abnormal returns, average abnormal returns, and cumulative abnormal returns. The normality testing has verified that the data follows a normal distribution, confirming the appropriateness of the use of the paired sample t-test to test the hypothesis of whether there is a difference in abnormal returns, average abnormal returns, and cumulative abnormal returns. The findings show evidence of no statistically significant alterations in abnormal returns, average abnormal returns, or cumulative abnormal returns before and after the announcement. This situation suggests that the bankruptcy of Silicon Valley Bank had a negligible influence on stock markets in the Asia Pacific area.

Copyright

© 2024 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Fifin Nur Aida
AU  - Intan Nurul Awwaliyah
AU  - Marmono Singgih
PY  - 2024
DA  - 2024/12/11
TI  - Asia-Pacific Stock Market Reactions To Silicon Valley Bank's Bankruptcy
BT  - Proceedings of the 5th International Conference on Global Innovation and Trends in Economy 2024 (INCOGITE 2024)
PB  - Atlantis Press
SP  - 132
EP  - 144
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-585-0_10
DO  - 10.2991/978-94-6463-585-0_10
ID  - Aida2024
ER  -