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The Effect Of Major Events On Bank Share Price In Romania

Author

Listed:
  • Bogdan Capraru

    (Universitatea Alexandru Ioan Cuza din Iasi)

  • Iulian Ihnatov

    (Universitatea Alexandru Ioan Cuza din Iasi)

  • Nicu Sprincean

    (Universitatea Alexandru Ioan Cuza din Iasi)

Abstract

The aim of this paper is to investigate three main events which have influenced Banca Transilvania’s stock price movements. This paper employs the event study methodology. The expected returns are computed by using two different models: Market Model and Capital Asset Pricing Model (CAPM). Our results show that only for one event out of three the abnormal returns (ARs) were positive and statistically significant in the event day.

Suggested Citation

  • Bogdan Capraru & Iulian Ihnatov & Nicu Sprincean, 2016. "The Effect Of Major Events On Bank Share Price In Romania," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 747-757, July.
    • Handle: RePEc:ora:journl:v:1:y:2016:i:1:p:747-757
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    File URL: http://anale.steconomiceuoradea.ro/volume/2016/n1/73.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    ownership change; CEO turnover; banking; takeover bid; event study;
    All these keywords.

    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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