Title of article
CORPORATE CRIME ANNOUNCEMENT EFFECTS ON STOCK PERFORMANCE: AN EMPIRICAL STUDY IN MALAYSIA
Author/Authors
Voon, Sze-Ling University of Malaysia Sarawak - Faculty of Economics and Business - Department of Economics, Malaysia , Puah, Chin-Hong University of Malaysia Sarawak - Faculty of Economics and Business - Department of Economics, Malaysia , Entebang, Harry University of Malaysia Sarawak - Faculty of Economics and Business - Department of Economics, Malaysia
From page
15
To page
28
Abstract
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.
Journal title
Journal of Economic Cooperation and Development
Journal title
Journal of Economic Cooperation and Development
Record number
2621153
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