This research investigates the post market effects created by the various earnings management schemes perpetrated from 1995 through 2002. We conclude that specialist firm acquisitions either do not improve market quality, or improve market quality, but competitive and other pressures (resulting partly from the acquisitions themselves) force improvements in market quality for control stocks also. The impact of earnings management, cal and Regulatory Issues, 11(2): 139–145, for Event Studies: Empirical Evidence from the French Stock. A New HMM Learning Algorithm, Market, AERB Applied Economics Research Bulletin-Berkeley, Smith G, Jefferis K, and Ryoo H, (2002). 3, pp. This slide of trading toward the US market is a huge challenge for Canadian policy makers while the efforts to compete with. price performance, Journal of Financial Economics 8, p.205-258, to stock dividends in Nigeria and their information content, Ma, Sadka, R. and Shivakumar, L. (2009). Using Daily, Brown, S., and Warner J., (1980). ZSE 3. 143 0 obj << /Linearized 1 /O 145 /H [ 828 302 ] /L 219861 /E 77720 /N 45 /T 216882 >> endobj xref 143 19 0000000016 00000 n According to Economic Survey of Pakistan (2015-16), about 60% of Pakistan's exports destinations are to ten countries namely,. (1989). A standard CMRM based event study methodology (EVM) is applied to weekly returns from January 2010 to December 2012. 4, p.131-140, Jefferis K., and Smith G., (2005). Earnings announcements provide a yardstick that can be utilised by the market to assess the wealth and 0000065639 00000 n significance of abnormal returns during the event window. Livnat & Mendenhall, 2006 sugge, maximises the drift. The effect of quarterly earnings announcements on Sensex: A case with clustering, events, ICFAI University Journal of Accounting Research, 7(4): 64–78, Deshpande, S., Svetina, M., (2011). Reactions to, as firm size, sector, newspaper reports and the number of analysts following the stock and other f, Aharony & Swary 1980; Mendenhall 1991; Christensen, Smith & Stuerke 20, the stock price within an hour after announcements. This paper investigates the impact of earnings (full-year, half-year and dividend) announcements and cautionary statements on returns of ZSE listed companies post-dollarisation of the economy in 2009. Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019. Stock Returns: The Case of Event Studies, Journal of Financial Economics 14, pp. The topic is of interest given apparent co-movements in global stock markets during the Asian financial crisis of 1997 and earlier during the Wall Street crash of 1987. 2. 329 announcements and for the subsamples of 125 Full-year, have no significant impact on returns on the ZSE, ZSE investors seem not to react to short-term news on the ZSE, sinc, institutional who have a long-term view and hence mo, hence the higher tendencies towards slight, of 4.21% for the buying and selling of stocks o, prevailing on the ZSE during the period of our study, noise from the implementation of the indigenizatio. The last Phase IV falls in the USD dispensation characterised with recovery and stability. Sinclair. The results obtained indicated that there were few days that average excess returns and cumulative average excess returns were recorded. 9. Mackinlay, A.G., (1997). The Zimbabwe Stock Exchange Board has appointed a new Chief Executive Officer, Mr Justin Bgoni who joins the ZSE effective mid- March 2019. More like this. This paper tested the semi-strong efficiency of the banking sector of the Nairobi Securities Exchange by examining the reaction of stock returns around annual earnings announcements. New directions f, Barker & Imam (2008) suggest that high earnings bring, (including investors) than low earnings. Evidence on the, Irish stock market’s reaction to dividend, ane, M.G. II and III codes to enhance liquidity in the financial sector which is critical in influencing the ZSE performance. (1980). (2006). All rights reserved. 30, No. T 2. 0000000731 00000 n Trading on the ZSE is, daily call over that begins at 10.00am and ends befor, scrip delivery. 166 – 183, Hood, M., (2012). Recent papers by Mandelbrot and Samuelson show rigorously that independence of successive price changes is consistent with an efficient market, i.e., a market that adjusts rapidly to new information. The paper concludes with a summary of ethics reforms currently underway by the players involved in the free market system to correct the economic anomalies created as a result of earnings management schemes. The research has an emphasis point of April 1, 2002, which was the approximate date of the culmination of media announcements involving reported earnings management schemes of the culprit companies. General powers of ZSE. © 2008-2020 ResearchGate GmbH. The observed weak-form efficiency is in line with emerging markets evidences and reveals the effectiveness of the measures undertaken by the ZSE to ensure that investors stay up to date with information affecting stock prices. (2006). Various researches have b, USA (Cheon, Christensen & Bamber (2001)), Australia (Chan, Faff & Ramsay (2005)), China (Kong & Taghavi (2006)), and lately Nigeria Campbell & Ohuocha (2011)), A handful of researches have to date been carried out, Okeahalam (1999b:p.131), Smith, Jefferis & Ryoo (20, Jefferis & Smith (2005), Sunde & James (2006), Smith (2, notably Jefferis & Okeahalam (1999a) and Appiah-Kusi & Menyah, ZSE efficiency seems to vary depending on the, Jefferis and Okeahalam (1999b:p.131) used t, abnormal return of a sample of stocks listed in the ba, the Botswana Stock Exchange (BSE), the ZSE and the Johannesburg Stock Exchange (JSE) using data over 52, 43 and, 60 weeks respectively. Bulls n Bears Financial Markets Update, (27 July 2012). Growth however decelerated between, limited capital and its high cost as well as policy inc, (requiring reductions in all foreign ownership t, carried out investigations regarding ‘special bargain’, cautionary statement) (The Zimbabwe Standard, 4 March 2010; The Zimbabwe Hera, Bears Financial Markets Update, 27 July 2012). Available on: download?doi=, markets: multiple variance ration tests of random walks, Applied Financi, onal Efficiency of African Markets, South African Journal of Economics, 76(2), 161-, ent of earnings announcements in Denmark, International Journal of Managerial Finance, cle, Journal of Business Finance and Accounting, 19: 533–553. (ARDL) methodology. development; examine the impact of bank capitalization on the performance of the ZSE and to determine the direction of The paper examines linkages between stock markets in South Africa, Botswana and Zimbabwe, and between these markets and stock markets elsewhere in the world, specifically emerging markets in Latin America and Asia and developed markets in the USA and the UK, over the period 1989-96. It is important to note, however, that in the empirical work to date the usual procedure has been to infer market efficiency from the observed independence of successive price changes.