Furthermore, because little research examines the valuation of R&D reductions (Chan, Lin, and Wang, 2015), exploring the announcement effects
of R&D changes expands the literature on the valuation of R&D spending.
Using a sample of private placements made on the Korean Securities Dealers Automated Quotations (KOSDAQ) from January 2000 to December 2010 and limiting it to only include first Secondary Equity Offerings (SEOs), this study examines the relationship between the announcement effects
of equity private placements and lock-up and/or discount signals sent by distressed firms as well as healthy ones.
Keywords : Corporate governance, Event Study, Announcement effects
, Stock price, Agency theory
27) In any case, the announcement effects
suggest that monetary policy was an important driver of financial market behavior in 2013.
This paper presents an examination of the relation of liquidity, transaction costs, and risk, and describes an investigation of macroeconomic indicator announcement effects
on liquidity in the Japanese Government Bond (JGB) Futures market of the Tokyo Stock Exchange (TSE).
This result suggests that failure to control for expectations may lead to understating the efficacy of LSAPs, since announcement effects
only capture a portion of the decline in the 10-year Treasury rate.
This announcement effects
the end of the Company's trading halt.
Our work also relates to studies of announcement effects
in the indexed markets, especially that of Beechey and Wright (2009), which also analyzes intraday data but is different in its focus on liquidity and the announcement adjustment process as opposed to price-level effects.
This includes formal statistical tests on the announcement effects
of the various measures employed.
Prior to the formal study of announcement effects
on volatility, researchers found that volatility is autocorrelated and displays intraday and intraweek patterns.
Since investors cannot (short-)sell specific pieces of a firm--or short-sell the CEO, for that matter--the stock market is unlikely to allow identifying a "market reaction" to managerial biases, with the exception of the rare occasion when we can study announcement effects
(as in the case of mergers by overconfident CEOs discussed above).
Moreover, he makes no attempt to relate announcement effects
to firm characteristics.