The Effect of Corporate Action on Investor Reaction in Transportation Sector

DOI

10.2991/aebmr.k.211124.064How to use a DOI?

Keywords

Corporate action; Cumulative abnormal return; Investor’s response

Abstract

There is many previous research that analyzed market responses towards mergers & acquisitions. However, there are limited research has been conducted in the transportation sector in ASEAN. This research investigates the effect of corporate action on investor response to transportation sector companies in ASEAN. Investor response was measured by cumulative abnormal returns (CAR), while corporate action we use a dummy variable to separate companies that perform M&A corporate action and those that did not perform M&A corporate action. Control variables used in this study including firm size, firm age, and firm leverage. The number of samples in this study was 192 companies in the transportation sector in ASEAN during the 2015-2020 period. The results showed that the independent variable corporate action had a negative effect on investor response. While the control variables firm size, firm age, and firm leverage had no significant effect on investor response.

Copyright

© 2021 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article under the CC BY-NC license.

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TY  - CONF
AU  - Juniarti Juniarti
AU  - Yenny Hutomo
AU  - Gracia Stefani
PY  - 2021
DA  - 2021/11/25
TI  - The Effect of Corporate Action on Investor Reaction in Transportation Sector
BT  - Proceedings of the 6th International Conference on Tourism, Economics, Accounting, Management, and Social Science (TEAMS 2021)
PB  - Atlantis Press
SP  - 452
EP  - 461
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.211124.064
DO  - 10.2991/aebmr.k.211124.064
ID  - Juniarti2021
ER  -