What is it about?
The study tests the reaction of Bahrain Bourse to 2014 annual financial results announcement. The study is based on 30 companies. The researcher used event study methodology. The behaviour of average abnormal returns (AARs) and cumulative average abnormal returns (CAARs) are examined for 30 days prior to and 31 days after the announcement of annual financial results. Runs test, sign test and t-test statistics on AARs are statistically not significant. However, t-values on CAARs are statistically significant. Therefore, we conclude that Bahrain Bourse is not efficient in the semi-strong form. The findings help regulators to initiate measures to ensure market efficiency.
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Why is it important?
The behaviour of average abnormal returns (AARs) and cumulative average abnormal returns (CAARs) are examined for 30 days prior to and 31 days after the announcement of annual financial results. Runs test, sign test and t-test statistics on AARs are statistically not significant. However, t-values on CAARs are statistically significant.
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I hope you find this article thought-provoking.
Professor Iqbal Thonse Hawaldar
Kingdom University
Read the Original
This page is a summary of: The Reaction of Bahrain Bourse to Announcement of Annual Financial Results, International Review of Business Research Papers, March 2016, Zant World Press,
DOI: 10.21102/irbrp.2016.03.121.05.
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