Market Efficiency and Organizational Corruption: Study on the Impact on Shareholder Value
With this study, we e valuated the influence of disclosure of the involvement of organizations in corruption on creating value for shareholders. We chosen four companies that had their names linked to allegations of corruption in the past 10 years. An event study was us...
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| Format: | Article |
| Language: | English |
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FUCAPE Business School
2015-01-01
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| Series: | BBR: Brazilian Business Review |
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| Online Access: | http://www.redalyc.org/articulo.oa?id=123041059001 |
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| _version_ | 1825207346859606016 |
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| author | Renata Crosara Miari José Marcos Carvalho de Mesquita Daniel Jardim Pardini |
| author_facet | Renata Crosara Miari José Marcos Carvalho de Mesquita Daniel Jardim Pardini |
| author_sort | Renata Crosara Miari |
| collection | DOAJ |
| description | With this study, we e valuated the influence of disclosure of the involvement of organizations in corruption on creating value for shareholders. We chosen four companies that had their names linked to allegations of corruption in the past 10 years. An event study was used to ve rify if relevant information tends to be immediately reflected in stock prices. We selected 28 events for analysis and we observed negative and positive variations of the securities in relation to the market, in the days before the disclosure, as in most o f the 20 days after publication. However, in cumulative terms, there was a rise in prices over time, returning to levels near those observed before advertising the event. The results indicate that the market did not behave efficiently in this analyzed period. |
| format | Article |
| id | doaj-art-78e11bf2cde14e6c978bb9f23dbb2d72 |
| institution | Kabale University |
| issn | 1807-734X |
| language | English |
| publishDate | 2015-01-01 |
| publisher | FUCAPE Business School |
| record_format | Article |
| series | BBR: Brazilian Business Review |
| spelling | doaj-art-78e11bf2cde14e6c978bb9f23dbb2d722025-02-06T23:39:30ZengFUCAPE Business SchoolBBR: Brazilian Business Review1807-734X2015-01-01123Market Efficiency and Organizational Corruption: Study on the Impact on Shareholder ValueRenata Crosara MiariJosé Marcos Carvalho de MesquitaDaniel Jardim PardiniWith this study, we e valuated the influence of disclosure of the involvement of organizations in corruption on creating value for shareholders. We chosen four companies that had their names linked to allegations of corruption in the past 10 years. An event study was used to ve rify if relevant information tends to be immediately reflected in stock prices. We selected 28 events for analysis and we observed negative and positive variations of the securities in relation to the market, in the days before the disclosure, as in most o f the 20 days after publication. However, in cumulative terms, there was a rise in prices over time, returning to levels near those observed before advertising the event. The results indicate that the market did not behave efficiently in this analyzed period.http://www.redalyc.org/articulo.oa?id=123041059001corruptionvalue creationstock market |
| spellingShingle | Renata Crosara Miari José Marcos Carvalho de Mesquita Daniel Jardim Pardini Market Efficiency and Organizational Corruption: Study on the Impact on Shareholder Value BBR: Brazilian Business Review corruption value creation stock market |
| title | Market Efficiency and Organizational Corruption: Study on the Impact on Shareholder Value |
| title_full | Market Efficiency and Organizational Corruption: Study on the Impact on Shareholder Value |
| title_fullStr | Market Efficiency and Organizational Corruption: Study on the Impact on Shareholder Value |
| title_full_unstemmed | Market Efficiency and Organizational Corruption: Study on the Impact on Shareholder Value |
| title_short | Market Efficiency and Organizational Corruption: Study on the Impact on Shareholder Value |
| title_sort | market efficiency and organizational corruption study on the impact on shareholder value |
| topic | corruption value creation stock market |
| url | http://www.redalyc.org/articulo.oa?id=123041059001 |
| work_keys_str_mv | AT renatacrosaramiari marketefficiencyandorganizationalcorruptionstudyontheimpactonshareholdervalue AT josemarcoscarvalhodemesquita marketefficiencyandorganizationalcorruptionstudyontheimpactonshareholdervalue AT danieljardimpardini marketefficiencyandorganizationalcorruptionstudyontheimpactonshareholdervalue |