Analysis impact of firm-specific information on a company's stock Essay

Analysis impact of firm-specific information on a company's stock returns - Essay Example Accordingly, a brief literature review will be shown which helps to underscore and elaborate upon many of the specific theoretical interpretations of the methods utilized within this report. Additionally, a demonstration of development of event study is included and defined. Furthermore, the third part of the piece will include a methodology review. The explanations of approaches which have been utilized to conduct this report will be given as well as some assumptions and critical common factors that are associated with this methodology. Likewise, a research design and results section will comprise the fourth part of this analysis. Ultimately, the issues which will be explored will be analyzed based upon an event study method. This part will begin with defining the date of events and then choose the estimated period and test period. Following this, marker models will be chosen as the benchmark for abnormal returns. Similarly, a linear regression for the market will be chosen. At this time, ordinary least square assumptions will be necessary to estimate the stability. Based on the results of linear regression, the abnormal return will be calculated. Next, the Cumulative abnormal return, or CAR will be utilized as a means of indicating the effect of events. A T-tests by CAR will be presented to show the significant of these events. A final part will necessarily be the conclusion of this report. It will show the basic information of this report and summarize it according to the inference which has been drawn. Background information InterContinental Hotels Group (IHG) is global hotel group which operate nine hotel brands (which in turn comprise a total of 4,600 hotels in more than 100 countries and regions, more than 676,000Â  rooms). IHG was established in 1946 and is the world's largest and most widely distributed network of professionally managed hotels. IHG operates in three different ways. First, IHG operates as a franchisor, second as a management accessory, and thirdly it operates as a rental basis. In addition, the franchise has been recognized as an effective business philosophy by many leaders within the industry. This report chose four specific events to explore the relationship with the IHG stock price volatility for a period time. These four events are shown below: (1) 18th April 2012: IHG shows its support for small business owners, entrepreneurs and Road Warriors. (2) 7th August 2012: IHG reported interim results from the 30th June 2012 and announced $1bn return of capital. (3) 8th October 2012: IHG reported the results of general meeting about Special Dividend and Share Consolidation. (4) 12th November 2012: IHG announces new Vice President of Development in Europe. Literature review Efficient Markets Hypothesis(EMH) The Efficient Markets Hypothesis(EMH)arose in 1970 by Eugene Fama. "Efficient market hypothesis" was developed by Louis Bachelier (1900) who was from the perspective of the stochastic process. Bachelier studied t he movement of Brownian motion, stock price changes, and recognized that the effectiveness of the market information, present events, and even the discounted value of the future events, are reflected in market prices. The efficient market theory is that the market price already contains all the available information. Based on the past information and

BRIEF RESPONSES TO CLASSMATES POSTS Essay Example | Topics and Well Written Essays - 750 words

BRIEF RESPONSES TO CLASSMATES POSTS - Essay Example Unlike litigation, arbitration allows parties to agree on who would hear the case. In formal litigation, the court assigns the case to the next available adjudicator. In civil courts, the issues become a matter of public interest whereas, in arbitration/mediation, cases remain confidential. Uncertainty of litigation processes increases once the case is appealed in higher courts. In contrast, arbitration leaves fewer chances for appeal. As Dimino specified, this happens as negotiation takes place ‘without having a forced agreement’. As everyone knows, an arbitral tribunal is not bound by the regulations of civil procedures, and hence, the parties can, by their mutual agreement, vary the terms of arbitrators’ authority, fire the arbitrators, and fix the procedure if they want.   In other words, the total mechanism of arbitration is more convenient and less stressful to the parties. At this juncture it is reasonable to point out some of the disadvantages of choosin g arbitration as settlement option. Among them, lack of transiency is often pointed out by critics as the major drawback. In case the arbitration becomes biased due to the so called confidentiality, the situation can become worse as courts are less likely to review the arbitration decisions anymore. Evidently, as many of the posts here indicate, arbitration has several advantages over formal dispute resolution methods. However, an important thing to remember is that the feasibility and popularity of arbitration does not reduce the significance of litigation. Instead, arbitration is only a limb of civil system that can reduce the burden of formal courts and thus facilitate easy access to justice. Like others, Barcena also has emphasized the higher cost that can incur during litigation. Although this claim has been true so far, recent studies indicate a considerable rise in arbitration cost also, sometimes that exceeded the cost of formal litigation processes. For instance, Public Cit izen, a consumer watchdog group conducted a study which identified that â€Å"the cost of initiating an arbitration is significantly higher than the cost of filing a lawsuit: $6,650 to $11,625 to initiate a claim to arbitrate a consumer claim worth $80,000 versus $221 to file that action in a particular county court† (as cited in Nolo). Admittedly, the other view regarding the parties’ perceptions on winning the case in court reflects right observation. As the litigation processes become more extensive and complex, the scope for mediation normally increases. Jimenez’s choices of dispute resolution clause are ‘bargaining and mediation’ as they are found ‘cost-effective’. However, it seems applicable only to certain situations like in a dispute between employer and employee on salary or promotion. As Yolauri Barcena opines, â€Å"mediation could be a good possibility for non-critical disputes within co-workers†. However, there are some essential negotiation skills that managers require for aligning their workforce to achieve the organizational goals in a viable manner. Every sphere of human life is vulnerable to conflict and therefore requires ceaseless haggle and negotiation. When it is in business affairs, the negotiation process goes rather formal, and it demands outstanding skills from an individual to win the bargain. However, the parties involved must be aware of the fact that they bargain not to win but to resolve an issue. This

Assignment 8 Essay Example | Topics and Well Written Essays - 750 words - 1

Assignment 8 - Essay Example Through, personal experience, interviewing and observation, a possible solution to the current state of affairs in the university’s system can be improved for the benefit of the students and the university Previous studies have shown that the quality of education or work in an institution can be improved if a variety of activities and courses exist. The morale of the students and the quality of education is also determined by the existing structures in an institution. Trent University has limited its ability of providing quality education in certain fields because of its inconsistent programs. Consistency provides value addition because of the maintenance of standards. This paper aims at providing some clear benefits that a review in the current system will achieve for Trent University. This consultation report will therefore provide a guideline on how to pursue the changes that can be applied to the university. The scope of this project aims at providing the students with a chance of pursuing their desired courses without being forced to pursue courses that they did not have in mind. This system will be flexible so that changing courses for a student will be their own prerogative and not because they lack other options. Availability of options for the students to change courses ensures that the university offers enough courses hence the intake of students will also increase. The current system is as depicted in Diagram 3 (Appendix C). The decision support system will therefore provide guidance to students into picking the courses that are in their G.P.A range and their qualifications. The system will also be instrumental in ensuring that courses are scheduled in a balanced manner giving major courses and short courses including electives different scheduling. The short courses will be placed in appropriate times like during summer and holidays or fixed in appropriate times like weekends. The implementation of this

Critique and Development of Research Questions Essay

Critique and Development of Research Questions - Essay Example onsidered as a chief method of ensuring national security and the employment of Polygraph interviews as part of security clearance procedures in different branches of the American government has been widely criticized. Thus, in the background of ongoing debates on the utility of polygraph in national security, the scope and relevance of a profound research on the topic is categorical. In this research paper, the focal attempt has been to make a scrupulous investigation on ‘the utility of polygraph in national security’. The psycho-physiological detection of deception (PDD) including polygraph testing should be given more crucial attention in current researches. â€Å"In stark contrast to the scientific literature on forensic use of PDD, the use of FDD in employment and for screening, including screening for national security, is the subject of relatively little published research. Initial commentary on the use of polygraphs for national security screening focused on pro blems that all diagnostic tests experience when attempting to diagnose a rare condition.† (Granhag and Strà ¶mwall, 2004, p 118). In the background of serious debates on the question, it is of central implication to have a precise analysis of the matters and to come up with the most sagacious findings on the question. Therefore, the importance of this research paper is greater and the potential findings of this investigation on ‘the utility of polygraph in national security’ also justify the scope of the study. The utility of polygraph in national security has been a critical topic which has attained enormous focus and invited national interest in the modern American context. The paper attempts to undertake a profound investigation into the topic ‘The Utility of Polygraph in National Security’ and come up with the most sagacious findings on the questions which attract the current debates. Polygraph testing has been a serious technique of security assurance for a long time, in spite of the