Corporate Crime Announcement Effects On Stock Performance: An Empirical Study In Malaysia
An in-depth investigation of the effects of announcement of corporate crime on firm performance focusing on stock market performance among public enterprises in Malaysia has been conducted. A sample of 7 large, established public companies charged for committing corporate crime by Securities Commiss...
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| Main Authors: | , , |
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| Format: | E-Article |
| Language: | English |
| Published: |
SESRIC
2008
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| Subjects: | |
| Online Access: | http://ir.unimas.my/id/eprint/17762/1/CORPORATE%20CRIME%20ANNOUNCEMENT%20EFFECTS%20ON%20STOCK%20PERFORMANCE%20%28abstract%29.pdf http://ir.unimas.my/id/eprint/17762/ https://www.researchgate.net/publication/228389854 |
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| Summary: | An in-depth investigation of the effects of announcement of corporate crime on firm performance focusing on stock market performance among public enterprises in Malaysia has been conducted. A sample of 7 large, established public companies charged for committing corporate crime by Securities Commission from the period of 1999 to 2005 in Malaysia were identified and examined. Using the event-study methodology proposed by Rao (1997), monthly average abnormal returns (AARs) and cumulative average abnormal returns (CAARs) for the sample of 8 announcements of separate crimes ranging from 12 months prior to and 6 months after the announcement dates are determined. Empirical result indicates that the stock market is informationally inefficient in Malaysia and investors do react to announcement of corporate crime. |
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