Stock market reaction to corporate stands against racism : Summer 2020

Detalhes bibliográficos
Autor(a) principal: Gomes, Ana Rita Gago
Data de Publicação: 2021
Tipo de documento: Dissertação
Idioma: eng
Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
Texto Completo: http://hdl.handle.net/10400.14/34770
Resumo: The purpose of this paper is to investigate the market reaction to Corporate Sociopolitical Activity, utilizing an event study methodology to determine the impact of an event on the companies’ abnormal stock returns. The sample consists of Standard & Poor’s 500 Index, US-based companies that made a statement condemning racism after the death of George Floyd on May 25 of 2020. Daily stock return is used to calculate the Cumulative Abnormal Returns (CAR) and Cumulative Average Abnormal Returns (CAAR) for the [-1,1] event window, which includes the day before, the day of, and the day after the event took place. Main results indicate that there is marginal evidence to believe that companies that made those statements saw a positive stock market return. Furthermore, using the Multiple Regression model, it was shown that the level of liberalism by the employees in the firm that made the statement negatively impacts the stock market returns.
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spelling Stock market reaction to corporate stands against racism : Summer 2020Non-market strategyCorporate sociopolitical activityRacismEvent studyStock market reactionCumulative abnormal returnStakeholder theoryResource dependence theoryEstratégia de não-mercadoEstratégias sociopolíticas corporativasRacismoEstudo de eventosReação do mercadoRetornos anormais acumuladosTeoria de stakeholdersTeoria da dependência de recursosDomínio/Área Científica::Ciências Sociais::Economia e GestãoThe purpose of this paper is to investigate the market reaction to Corporate Sociopolitical Activity, utilizing an event study methodology to determine the impact of an event on the companies’ abnormal stock returns. The sample consists of Standard & Poor’s 500 Index, US-based companies that made a statement condemning racism after the death of George Floyd on May 25 of 2020. Daily stock return is used to calculate the Cumulative Abnormal Returns (CAR) and Cumulative Average Abnormal Returns (CAAR) for the [-1,1] event window, which includes the day before, the day of, and the day after the event took place. Main results indicate that there is marginal evidence to believe that companies that made those statements saw a positive stock market return. Furthermore, using the Multiple Regression model, it was shown that the level of liberalism by the employees in the firm that made the statement negatively impacts the stock market returns.O objetivo deste estudo é investigar a reação do mercado a Estratégias Sociopolíticas Corporativas, utilizando a metodologia de estudos de eventos, de modo a determinar o impacto de um evento nos retornos anormais da cotação de mercado da empresa. A amostra consiste em empresas americanas, pertencentes ao Index Standard & Poor’s 500, que emitiram comunicados a condenar o racismo, após a morte de George Floyd, a 25 de maio de 2020. Os retornos da cotação de mercado diários são aplicados, de maneira a calcular Retornos Anormais Acumulados e os Retornos Médios Anormais Acumulados para a janela de evento [-1,1], que inclui o dia antes, o dia e o dia depois de o evento acontecer. Os resultados principais indicam que existe provas marginais para acreditar que as empresas que efetuaram esses comunicados tiveram uma reação positiva do mercado. Adicionalmente, ao usar o modelo de Regressão Múltipla, verificou-se que o nível de liberalismo dos empregados das empresas que emitiram os comunicados afeta negativamente os retornos na bolsa.Elnayal, Omar Salaheldin Ahmed NabihVeritati - Repositório Institucional da Universidade Católica PortuguesaGomes, Ana Rita Gago2021-09-13T12:24:07Z2021-01-2520212021-01-25T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/masterThesisapplication/pdfhttp://hdl.handle.net/10400.14/34770TID:202656195enginfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-07-12T17:40:17Zoai:repositorio.ucp.pt:10400.14/34770Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T18:28:11.688503Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse
dc.title.none.fl_str_mv Stock market reaction to corporate stands against racism : Summer 2020
title Stock market reaction to corporate stands against racism : Summer 2020
spellingShingle Stock market reaction to corporate stands against racism : Summer 2020
Gomes, Ana Rita Gago
Non-market strategy
Corporate sociopolitical activity
Racism
Event study
Stock market reaction
Cumulative abnormal return
Stakeholder theory
Resource dependence theory
Estratégia de não-mercado
Estratégias sociopolíticas corporativas
Racismo
Estudo de eventos
Reação do mercado
Retornos anormais acumulados
Teoria de stakeholders
Teoria da dependência de recursos
Domínio/Área Científica::Ciências Sociais::Economia e Gestão
title_short Stock market reaction to corporate stands against racism : Summer 2020
title_full Stock market reaction to corporate stands against racism : Summer 2020
title_fullStr Stock market reaction to corporate stands against racism : Summer 2020
title_full_unstemmed Stock market reaction to corporate stands against racism : Summer 2020
title_sort Stock market reaction to corporate stands against racism : Summer 2020
author Gomes, Ana Rita Gago
author_facet Gomes, Ana Rita Gago
author_role author
dc.contributor.none.fl_str_mv Elnayal, Omar Salaheldin Ahmed Nabih
Veritati - Repositório Institucional da Universidade Católica Portuguesa
dc.contributor.author.fl_str_mv Gomes, Ana Rita Gago
dc.subject.por.fl_str_mv Non-market strategy
Corporate sociopolitical activity
Racism
Event study
Stock market reaction
Cumulative abnormal return
Stakeholder theory
Resource dependence theory
Estratégia de não-mercado
Estratégias sociopolíticas corporativas
Racismo
Estudo de eventos
Reação do mercado
Retornos anormais acumulados
Teoria de stakeholders
Teoria da dependência de recursos
Domínio/Área Científica::Ciências Sociais::Economia e Gestão
topic Non-market strategy
Corporate sociopolitical activity
Racism
Event study
Stock market reaction
Cumulative abnormal return
Stakeholder theory
Resource dependence theory
Estratégia de não-mercado
Estratégias sociopolíticas corporativas
Racismo
Estudo de eventos
Reação do mercado
Retornos anormais acumulados
Teoria de stakeholders
Teoria da dependência de recursos
Domínio/Área Científica::Ciências Sociais::Economia e Gestão
description The purpose of this paper is to investigate the market reaction to Corporate Sociopolitical Activity, utilizing an event study methodology to determine the impact of an event on the companies’ abnormal stock returns. The sample consists of Standard & Poor’s 500 Index, US-based companies that made a statement condemning racism after the death of George Floyd on May 25 of 2020. Daily stock return is used to calculate the Cumulative Abnormal Returns (CAR) and Cumulative Average Abnormal Returns (CAAR) for the [-1,1] event window, which includes the day before, the day of, and the day after the event took place. Main results indicate that there is marginal evidence to believe that companies that made those statements saw a positive stock market return. Furthermore, using the Multiple Regression model, it was shown that the level of liberalism by the employees in the firm that made the statement negatively impacts the stock market returns.
publishDate 2021
dc.date.none.fl_str_mv 2021-09-13T12:24:07Z
2021-01-25
2021
2021-01-25T00:00:00Z
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/masterThesis
format masterThesis
status_str publishedVersion
dc.identifier.uri.fl_str_mv http://hdl.handle.net/10400.14/34770
TID:202656195
url http://hdl.handle.net/10400.14/34770
identifier_str_mv TID:202656195
dc.language.iso.fl_str_mv eng
language eng
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.source.none.fl_str_mv reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
instacron:RCAAP
instname_str Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
instacron_str RCAAP
institution RCAAP
reponame_str Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
collection Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
repository.name.fl_str_mv Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
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