Investor reactions to corporate scandals of foreign listings.
Investors’ decision-making process has always been of interest to many researchers spanning across psychology and finance. Drawing from cognitive processing and structural management theories, this study examines the spillover effect on firms categorized as foreign-listed firms. Specifically, we exa...
| Main Authors: | , , |
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| Other Authors: | |
| Format: | Final Year Project (FYP) |
| Language: | English |
| Published: |
2011
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| Subjects: | |
| Online Access: | http://hdl.handle.net/10356/43704 |
| _version_ | 1811680933362794496 |
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| author | Thia, Jian Wei. Quek, Lennard Hsien Min. Leong, Alvin Jun Wei. |
| author2 | Kang Soon Lee, Eugene |
| author_facet | Kang Soon Lee, Eugene Thia, Jian Wei. Quek, Lennard Hsien Min. Leong, Alvin Jun Wei. |
| author_sort | Thia, Jian Wei. |
| collection | NTU |
| description | Investors’ decision-making process has always been of interest to many researchers spanning across psychology and finance. Drawing from cognitive processing and structural management theories, this study examines the spillover effect on firms categorized as foreign-listed firms. Specifically, we examine market reactions to SGX announcements of corporate scandals on S-shares, which are firms listed in the Singapore Stock Exchange with main operations in China. Financial event study methodology revealed the existence of negative spillover effects to other S-shares not involved in the alleged scandal. The results further affirm the importance of internal and external risk indicators in investment decision-making. Overall, this study suggests that investors may be adopting a two-stage decision-making process, which first uses general categorizations to narrow down on a group of firms that may be of interest before applying specific investment criteria to make their final decisions. |
| first_indexed | 2024-10-01T03:32:55Z |
| format | Final Year Project (FYP) |
| id | ntu-10356/43704 |
| institution | Nanyang Technological University |
| language | English |
| last_indexed | 2024-10-01T03:32:55Z |
| publishDate | 2011 |
| record_format | dspace |
| spelling | ntu-10356/437042023-05-19T05:45:00Z Investor reactions to corporate scandals of foreign listings. Thia, Jian Wei. Quek, Lennard Hsien Min. Leong, Alvin Jun Wei. Kang Soon Lee, Eugene Nanyang Business School DRNTU::Business::Finance::Investments Investors’ decision-making process has always been of interest to many researchers spanning across psychology and finance. Drawing from cognitive processing and structural management theories, this study examines the spillover effect on firms categorized as foreign-listed firms. Specifically, we examine market reactions to SGX announcements of corporate scandals on S-shares, which are firms listed in the Singapore Stock Exchange with main operations in China. Financial event study methodology revealed the existence of negative spillover effects to other S-shares not involved in the alleged scandal. The results further affirm the importance of internal and external risk indicators in investment decision-making. Overall, this study suggests that investors may be adopting a two-stage decision-making process, which first uses general categorizations to narrow down on a group of firms that may be of interest before applying specific investment criteria to make their final decisions. BUSINESS 2011-04-20T07:58:11Z 2011-04-20T07:58:11Z 2011 2011 Final Year Project (FYP) http://hdl.handle.net/10356/43704 en Nanyang Technological University 39 p. |
| spellingShingle | DRNTU::Business::Finance::Investments Thia, Jian Wei. Quek, Lennard Hsien Min. Leong, Alvin Jun Wei. Investor reactions to corporate scandals of foreign listings. |
| title | Investor reactions to corporate scandals of foreign listings. |
| title_full | Investor reactions to corporate scandals of foreign listings. |
| title_fullStr | Investor reactions to corporate scandals of foreign listings. |
| title_full_unstemmed | Investor reactions to corporate scandals of foreign listings. |
| title_short | Investor reactions to corporate scandals of foreign listings. |
| title_sort | investor reactions to corporate scandals of foreign listings |
| topic | DRNTU::Business::Finance::Investments |
| url | http://hdl.handle.net/10356/43704 |
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