IDEAS home Printed from https://ideas.repec.org/a/ids/ijmdma/v9y2008i4p415-428.html
   My bibliography  Save this article

Integrating the event study method and the Grey Markov forecasting model to evaluate the effect of announcements regarding the establishment of FHCs

Author

Listed:
  • Chen Li-Hui
  • Cheng Yao-Jen

Abstract

Taiwan has been to establish financial holding companies (FHCs). For investors pursuing wealth maximisation, it's uncertain whether benefits will be achieved by transforming the stocks of companies that are acquisition targets for FHCs into FHC stock. This investigation considers the stock values of newly established FHC target firms, and applies the Grey Markov forecasting model to determine whether the stock values of the target firms are affected by FHC acquisition announcements. The results indicate that the proposed model has advantages over alternative models. This work provides good references to help investors make decisions regarding selling, buying or holding the stocks of FHCs.

Suggested Citation

  • Chen Li-Hui & Cheng Yao-Jen, 2008. "Integrating the event study method and the Grey Markov forecasting model to evaluate the effect of announcements regarding the establishment of FHCs," International Journal of Management and Decision Making, Inderscience Enterprises Ltd, vol. 9(4), pages 415-428.
    • Handle: RePEc:ids:ijmdma:v:9:y:2008:i:4:p:415-428
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=19364
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijmdma:v:9:y:2008:i:4:p:415-428. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=19 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.