MBA & MM Theses

Permanent URI for this collectionhttps://wiredspace.wits.ac.za/handle/10539/9084

For information on accessing MBA & MM Theses content please contact Khomotso Chipu via email : Khomotso Chipu or Tel(W) : 011 717 3638
Alternatively contact Patience Mpitsa via email : Patience Mpitsa or Tel (W) : 011 717 3635

Browse

Filters

20112

Settings

Subject: search.filters.subject.Share price movements

Search Results

Now showing 1 - 2 of 2
  • Thumbnail Image
    Item
    Market responses to unexpected earnings of
    (2011-06-10) Laura Schaffer, Laura Schaffer
    The presence of a predictable share price response to a surprise in announced earnings by listed companies has been documented in US equity markets since 1968. This research investigated whether the presence of a positive or negative earnings surprise for companies listed on the JSE Securities Exchange resulted in an equivalent predictable share price response. The research was conducted on a sample of 112 companies listed on the JSE Securities Exchange between the period 1 February 2001 and 8 August 2007. The study analysed share price responses to 946 earnings surprise events over the three-day trading window around the actual earnings announcement date. Sell-side analyst earnings forecasts as published on INET Bridge were used as a proxy for the earnings expected by the market at the time of the company earnings announcement. The results of the event study showed a weakly positive share price response to a positive earnings surprise, the presence of which was not sustained once a few extreme values were excluded from the sample. The event study results for negative earnings surprises were more conclusive in showing no predictable significant share price response.
  • Thumbnail Image
    Item
    SHARE PRICE REACTION TO BLACK MANAGEMENT APPOINTMENTS IN SOUTH AFRICA
    (2011-05-12) Lowe, Craig
    Research conducted both locally and internationally has yielded mixed results to changes in top management. However, once management changes are classified according to the post of an executive and according to the circumstances surrounding the changes, a statistically significant share price reaction is usually observed. This study utilises standard event methodology to determine the share price reaction to black executive management appointments for companies listed on the Johannesburg Stock Exchange. A statistically significant cumulative abnormal return of 3.39% was found to exist over the two day announcement period. The sample comprises all black executive management appointments publicly announced in appointment-only announcements between 1st July 2000 and 30th June 2005. The findings are relevant in South Africa where the market is experiencing the overarching phenomenon of Black Economic Empowerment. Possible causes of the positive share price reaction are suggested