How stock markets react to regulatory sanctions? Evidence from France

被引：6
|
作者：
Kirat, Thierry [1 ]
Rezaee, Amir [2 ]
机构：
[1] Univ Paris Dauphine PSL, CNRS, IRISSO, Paris, France
[2] ISG Business Sch, 147 Ave Victor Hugo, F-75016 Paris, France
来源：
APPLIED ECONOMICS | 2019年 / 51卷 / 60期
关键词：
Sanctions; wrongdoings; financial regulator; reputation; abnormal returns; RETURNS; ENFORCEMENT; FIRMS;
D O I：
10.1080/00036846.2019.1644443
中图分类号：
F [经济];
学科分类号：
02 ;
摘要：
Our study of how the stock market reacts to sanction announcements by the French financial regulator from 2004 to 2017 finds that the market reacts negatively when a sanction is announced in the press. Cross-sectional regression models show that the penalties are too low to influence market reactions. Our results suggest that after the financial crisis of 2008, a plethora of news on financial wrongdoings has desensitized markets to announcements of sanctions against large companies.
引用
收藏
页码：6558 / 6566
页数：9
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