Impairment of Assets and Market Reaction during COVID-19 Pandemic on the Example of WSE
The main task of the article is to examine the impact of the reported impairment of assets (IoA) on the market reaction of investors on the Warsaw Stock Exchange [WSE] in the crisis condition caused by the COVID-19 pandemic. There is a need to verify whether the disclosure of this information in the...
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| Format: | Article |
| Language: | English |
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MDPI AG
2021-10-01
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| Series: | Risks |
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| Online Access: | https://www.mdpi.com/2227-9091/9/10/183 |
| _version_ | 1827678635944837120 |
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| author | Bartłomiej Lisicki |
| author_facet | Bartłomiej Lisicki |
| author_sort | Bartłomiej Lisicki |
| collection | DOAJ |
| description | The main task of the article is to examine the impact of the reported impairment of assets (IoA) on the market reaction of investors on the Warsaw Stock Exchange [WSE] in the crisis condition caused by the COVID-19 pandemic. There is a need to verify whether the disclosure of this information in the period of economic downturn will cause a similar negative reaction as in previous topics in this area. Research undertaken in this article helps identify the rules of behaviour (in the short term) whether the reaction of investors on updating the company’s assets in crisis conditions is different than in times of prosperity. The main hypothesis will be verified using the event study methodology. It allows to verify whether the upcoming information about IoA during the COVID-19 pandemic confirms an existence of statistically significant negative abnormal returns. Based on the 55 cases of current reports informing about IoA, which were submitted to the investors in the year 2020 and finally qualified for the research sample, I have not observed statistically significant negative abnormal returns on the adjacent days. The results are different from those obtained by researchers who study the market reaction to the IoA under non-crisis conditions of the economy. |
| first_indexed | 2024-03-10T06:13:51Z |
| format | Article |
| id | doaj.art-edf82343beba46cdbfc4095bcbc9bfa7 |
| institution | Directory Open Access Journal |
| issn | 2227-9091 |
| language | English |
| last_indexed | 2024-03-10T06:13:51Z |
| publishDate | 2021-10-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Risks |
| spelling | doaj.art-edf82343beba46cdbfc4095bcbc9bfa72023-11-22T19:55:59ZengMDPI AGRisks2227-90912021-10-0191018310.3390/risks9100183Impairment of Assets and Market Reaction during COVID-19 Pandemic on the Example of WSEBartłomiej Lisicki0Department of Accounting, Faculty of Finance, University of Economics in Katowice, 40-287 Katowice, PolandThe main task of the article is to examine the impact of the reported impairment of assets (IoA) on the market reaction of investors on the Warsaw Stock Exchange [WSE] in the crisis condition caused by the COVID-19 pandemic. There is a need to verify whether the disclosure of this information in the period of economic downturn will cause a similar negative reaction as in previous topics in this area. Research undertaken in this article helps identify the rules of behaviour (in the short term) whether the reaction of investors on updating the company’s assets in crisis conditions is different than in times of prosperity. The main hypothesis will be verified using the event study methodology. It allows to verify whether the upcoming information about IoA during the COVID-19 pandemic confirms an existence of statistically significant negative abnormal returns. Based on the 55 cases of current reports informing about IoA, which were submitted to the investors in the year 2020 and finally qualified for the research sample, I have not observed statistically significant negative abnormal returns on the adjacent days. The results are different from those obtained by researchers who study the market reaction to the IoA under non-crisis conditions of the economy.https://www.mdpi.com/2227-9091/9/10/183capital marketsaccountingfinancial reportingeconomic crisisCOVID-19shares |
| spellingShingle | Bartłomiej Lisicki Impairment of Assets and Market Reaction during COVID-19 Pandemic on the Example of WSE Risks capital markets accounting financial reporting economic crisis COVID-19 shares |
| title | Impairment of Assets and Market Reaction during COVID-19 Pandemic on the Example of WSE |
| title_full | Impairment of Assets and Market Reaction during COVID-19 Pandemic on the Example of WSE |
| title_fullStr | Impairment of Assets and Market Reaction during COVID-19 Pandemic on the Example of WSE |
| title_full_unstemmed | Impairment of Assets and Market Reaction during COVID-19 Pandemic on the Example of WSE |
| title_short | Impairment of Assets and Market Reaction during COVID-19 Pandemic on the Example of WSE |
| title_sort | impairment of assets and market reaction during covid 19 pandemic on the example of wse |
| topic | capital markets accounting financial reporting economic crisis COVID-19 shares |
| url | https://www.mdpi.com/2227-9091/9/10/183 |
| work_keys_str_mv | AT bartłomiejlisicki impairmentofassetsandmarketreactionduringcovid19pandemicontheexampleofwse |