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Impact Of Fsa Decision No. 23 From 5th February, 2014: Event Study Approach

Author

Listed:
  • Dumitru-Cristian OANEA

    (Bucharest University of Economic Studies, Bucharest, Romania)

  • Ștefan-Bogdan VASILESCU

    (Economic Advisor, Bucharest, Romania)

Abstract

The aim of this paper is to study the impact of Romanian Financial Supervisory Authority (FSA) decision number 23, which was taken on the 5th February of, 2014. This decision canceled the measure number 11 from August 12th, 2005, through which an investment fund cannot buy other investment fund’s stocks. By applying the new FSA decision, each investment fund, namely SIF 1 – Banat Crisana, SIF 2 – Moldova, SIF 3 – Transilvania, SIF 4 – Muntenia, and SIF 5 – Oltenia can buy stocks from each other. Our results show that the stocks return of the five investment funds, reacted significantly in the first day after the event, when a significant positive increase of 4.69% in the average return was recorded. Moreover, it seems that after 5 days the stock return of SIF3 has the tendency to return to pre-event values.

Suggested Citation

  • Dumitru-Cristian OANEA & Ștefan-Bogdan VASILESCU, 2015. "Impact Of Fsa Decision No. 23 From 5th February, 2014: Event Study Approach," Network Intelligence Studies, Romanian Foundation for Business Intelligence, Editorial Department, issue 6, pages 109-116, December.
    • Handle: RePEc:cmj:networ:y:2015:i:5:p:109-116
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Event study; Financial investment fund; Stock prices; Financial Supervisory Authority; Capital market;
    All these keywords.

    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy

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