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: Voon, Sze-Ling, Puah, Chin Hong, Harry, Entebang
Format: Article
Language:English
Published: SESRIC 2008
Subjects:
Online Access:http://ir.unimas.my/id/eprint/17762/
http://ir.unimas.my/id/eprint/17762/1/CORPORATE%20CRIME%20ANNOUNCEMENT%20EFFECTS%20ON%20STOCK%20PERFORMANCE%20%28abstract%29.pdf
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author Voon, Sze-Ling
Puah, Chin Hong
Harry, Entebang
author_facet Voon, Sze-Ling
Puah, Chin Hong
Harry, Entebang
author_sort Voon, Sze-Ling
building UNIMAS Institutional Repository
collection Online Access
description 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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spelling unimas-177622017-09-25T03:08:52Z http://ir.unimas.my/id/eprint/17762/ Corporate Crime Announcement Effects On Stock Performance: An Empirical Study In Malaysia Voon, Sze-Ling Puah, Chin Hong Harry, Entebang HD61 Risk Management 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. SESRIC 2008 Article PeerReviewed text en http://ir.unimas.my/id/eprint/17762/1/CORPORATE%20CRIME%20ANNOUNCEMENT%20EFFECTS%20ON%20STOCK%20PERFORMANCE%20%28abstract%29.pdf Voon, Sze-Ling and Puah, Chin Hong and Harry, Entebang (2008) Corporate Crime Announcement Effects On Stock Performance: An Empirical Study In Malaysia. Journal of Economic Cooperation Among Islamic Countries, 29 (2). pp. 15-28. ISSN 1308-7800 https://www.researchgate.net/publication/228389854
spellingShingle HD61 Risk Management
Voon, Sze-Ling
Puah, Chin Hong
Harry, Entebang
Corporate Crime Announcement Effects On Stock Performance: An Empirical Study In Malaysia
title Corporate Crime Announcement Effects On Stock Performance: An Empirical Study In Malaysia
title_full Corporate Crime Announcement Effects On Stock Performance: An Empirical Study In Malaysia
title_fullStr Corporate Crime Announcement Effects On Stock Performance: An Empirical Study In Malaysia
title_full_unstemmed Corporate Crime Announcement Effects On Stock Performance: An Empirical Study In Malaysia
title_short Corporate Crime Announcement Effects On Stock Performance: An Empirical Study In Malaysia
title_sort corporate crime announcement effects on stock performance: an empirical study in malaysia
topic HD61 Risk Management
url http://ir.unimas.my/id/eprint/17762/
http://ir.unimas.my/id/eprint/17762/
http://ir.unimas.my/id/eprint/17762/1/CORPORATE%20CRIME%20ANNOUNCEMENT%20EFFECTS%20ON%20STOCK%20PERFORMANCE%20%28abstract%29.pdf