Change search
ReferencesLink to record
Permanent link

Direct link
Hur marknaden bedömer europeiska företagstillkännagivanden vid etablering i BRIC länder
Södertörn University, School of Business Studies.
Södertörn University, School of Business Studies.
2012 (Swedish)Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE creditsStudent thesis
Abstract [en]

The aim of this study is to examine how European companies’ stock price is affected by an announcement about foreign direct investment in one of the BRIC countries. Another aim for the study is to examine if the market reacts differently to the three modes of entry methods in a given BRIC country and to examine if the market reacts differently to different European countries. The study also set out to answer if there were any effects of the three modes of entry that was visible a short time after the announcement. 

To answer and examine this, the authors used the event study approach. The study was conducted with a sample of 47 companies from France, Norway, Spain, Sweden and Germany. The time period in which the study was conducted within was between the years 2001-2011. The three modes of entry that was examined were Joint Venture, Acquisition and organic expansion. The three modes of entry were submitted to conduct a hypothesis test to determine whether or not an abnormal return was created during the event window in which the announcement took place. A hypothesis test was also conducted during the post event window to determine if the announcement effect is visible a short time period after the announcement. The event window was 11 days, five days before the announcement and five days after the announcement. The post event window was 30 days after the event window.

Companies with the same mode of entry in the same BRIC country were submitted to examine whether or not the announcement effect was different for the three modes of entry. Companies from the same European country were joined together after which BRIC country the announcements were about.

The result of the study was that significant positive abnormal return was created during both the event and post event window. There were also modes of entry in which the announcement effect was visible a short time after the announcement.

Place, publisher, year, edition, pages
2012. , 96 p.
Keyword [sv]
Eventstudie, BRIC, Utlandsetablering, Organisk tillväxt, Joint Venture, Förvärv
National Category
Business Administration
Identifiers
URN: urn:nbn:se:sh:diva-16793OAI: oai:DiVA.org:sh-16793DiVA: diva2:539616
Subject / course
Business Studies
Uppsok
Social and Behavioural Science, Law
Supervisors
Available from: 2012-07-11 Created: 2012-07-04 Last updated: 2012-07-11Bibliographically approved

Open Access in DiVA

fulltext(1286 kB)195 downloads
File information
File name FULLTEXT01.pdfFile size 1286 kBChecksum SHA-512
6b992e4bda534b65bb89d28224569da4f79d0172f670ef2d0efd82627171ded0ea242a82d8455dbe1504ef9690a716f0fd8c80ad3cb09b02f377d727e4d3ef64
Type fulltextMimetype application/pdf

By organisation
School of Business Studies
Business Administration

Search outside of DiVA

GoogleGoogle Scholar
Total: 195 downloads
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

Total: 305 hits
ReferencesLink to record
Permanent link

Direct link