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
相关论文
共 50 条
  • [41] EMPIRICAL ANALYSIS OF STOCK RETURNS AND VOLATILITY: EVIDENCE FROM ASIAN STOCK MARKETS
    Ahmad, Nawaz
    Ahmed, Rizwan Raheem
    Vveinhardt, Jolita
    Streimikiene, Dalia
    [J]. TECHNOLOGICAL AND ECONOMIC DEVELOPMENT OF ECONOMY, 2016, 22 (06) : 808 - 829
  • [42] Audit Quality and Stock Price Synchronicity: Evidence from Emerging Stock Markets
    Almaharmeh, Mohammad, I
    Shehadeh, Ali A.
    Iskandrani, Majd
    Saleh, Mohammad H.
    [J]. JOURNAL OF ASIAN FINANCE ECONOMICS AND BUSINESS, 2021, 8 (03): : 833 - 843
  • [43] Heuristics and stock buying decision: Evidence from Malaysian and Pakistani stock markets
    Khan, Habib Hussain
    Naz, Iram
    Qureshi, Fiza
    Ghafoor, Abdul
    [J]. BORSA ISTANBUL REVIEW, 2017, 17 (02) : 97 - 110
  • [44] Stock Return Autocorrelations: Evidence from the Asia-Pacific Stock Markets
    Lin, Luke
    Lin, Wen-Yuan
    [J]. ASIA-PACIFIC JOURNAL OF FINANCIAL STUDIES, 2021, 50 (04) : 441 - 465
  • [45] Do markets react to corporate governance reforms? Evidence from a developing economy
    Ndegwa, James Ndirangu
    [J]. CORPORATE GOVERNANCE-THE INTERNATIONAL JOURNAL OF BUSINESS IN SOCIETY, 2023, 23 (02): : 422 - 439
  • [46] Temperance in Stock Market Participation: Evidence from France
    Arrondel, Luc
    Pardo, Hector Calvo
    Oliver, Xisco
    [J]. ECONOMICA, 2010, 77 (306) : 314 - 333
  • [47] How do markets value stock liquidity? Comparative evidence from the UK, the US, Germany and China
    Liu, Guy
    Gregoriou, Andros
    Bo, Yibo
    [J]. ECONOMICS LETTERS, 2020, 186
  • [48] How Do Macroeconomic Variables Volatilities Affect Stock Markets Dynamics? Evidence From MENA Zone
    Mechri, Nesrine
    de Peretti, Christian
    Ben Hamad, Salah
    [J]. INTERNATIONAL JOURNAL OF BUSINESS, 2022, 27 (03):
  • [49] How Political and Geopolitical Risks Affect Stock Markets: Empirical Evidence from Emerging Market Economies
    Dogan, Emrah
    Afsar, Asli
    [J]. ESKISEHIR OSMANGAZI UNIVERSITESI IIBF DERGISI-ESKISEHIR OSMANGAZI UNIVERSITY JOURNAL OF ECONOMICS AND ADMINISTRATIVE SCIENCES, 2021, 16 (03): : 688 - 704
  • [50] How does liberalization affect emerging stock markets? Theories and empirical evidence
    Hoang, Bao Trung
    Mateus, Cesario
    [J]. JOURNAL OF ECONOMIC SURVEYS, 2023,
12345