Wealth Effect Of International Investment Announcements: Evidence From Developing Market

Amin Noordin, Bany Ariffin and Mat Nor, Fauzias (2006) Wealth Effect Of International Investment Announcements: Evidence From Developing Market. Asian Academy of Management Journal (AAMJ), 11 (1). pp. 1-17. ISSN 1394-2603

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This research provides evidence on the efficiency of one of the fastest developing and largest emerging securities market (Kuala Lumpur Stock Exchange, KLSE) in the Asia Pacific rim with respect to foreign investment announcements. Specifically, our study focuses on international investment announcements made in 1990 through 2000 for firms listed on the main board of the KLSE of Malaysia. The result shows that the announcements of foreign investment produce a significant positive daily abnormal return surrounding the event period. This implies that foreign investment announcements made by listed Malaysian firms do contain new relevant information which may creates market movements. At the same time, since the reaction is significantly positive, this implies that investors generally favor the international investment efforts of Malaysian firms listed at KLSE. In addition, it is also discovered that the economic development of the target country does influence the wealth creation process.

Item Type: Article
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28-70 Management. Industrial Management
Divisions: Penerbit Universiti Sains Malaysia (USM Press) > Asian Academy of Management Journal (AAM)
Depositing User: Mr Firdaus Mohamad
Date Deposited: 25 Jul 2017 08:47
Last Modified: 25 Jul 2017 08:47
URI: http://eprints.usm.my/id/eprint/35852

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