Investor’s Reaction Towards Corporate Action and Financial Performance in Asia Financial Industry

DOI

10.2991/aebmr.k.211124.035How to use a DOI?

Keywords

Corporate action; Financial industry; Financial performance; Investor reaction

Abstract

The primary objective of this study is to determine which investors value more between corporate action and financial performance in the Asia financial industry. We examine from the 486 firms that are suitable with the criteria we have. There are a total of 83 firms that made corporate action during the period 2015-2020 in Asia. We employ the event study methodology to explore the relationship of corporate action and financial performance with investor reaction. We use eleven and five days event window in our analysis. Our findings indicate that investors react positively to both corporate action and financial performance in both event windows. Further, we found corporate action has a stronger value to investors in eleven-days event window. As for financial performance, the results show that investors react more significantly to cash basis than to accrual basis.

Copyright

© 2021 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article under the CC BY-NC license.

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TY  - CONF
AU  - Juniarti Juniarti
AU  - Marcella Stevi Angelica
AU  - Elizabeth Fiona Cahyadi
PY  - 2021
DA  - 2021/11/25
TI  - Investor’s Reaction Towards Corporate Action and Financial Performance in Asia Financial Industry
BT  - Proceedings of the 6th International Conference on Tourism, Economics, Accounting, Management, and Social Science (TEAMS 2021)
PB  - Atlantis Press
SP  - 229
EP  - 240
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.211124.035
DO  - 10.2991/aebmr.k.211124.035
ID  - Juniarti2021
ER  -