Violation of listing requirements and company value: Evidence from Bursa Malaysia

Kwan, Jing Hui and Kwan, Shiang Shen (2011) Violation of listing requirements and company value: Evidence from Bursa Malaysia. International Review of Business Research Papers, 7 (2). pp. 257-268. ISSN 1832-9543

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Abstract

This paper examines the stock market’s reaction towards violation of Bursa Malaysia Listing Requirements. Failure to comply with the Listing Requirements may result in a number of sanctions including a public reprimand. Hence, the reflection of whether a firm has good corporate governance was identified through public reprimand imposed on the firm. Media releases of public reprimand on directors for public listed companies were collected from Bursa Malaysia online media releases database. A sample of 41 observations from the period of August 2005 to May 2009 was identified. Using the event-study methodology, average abnormal returns (AARs) and cumulative average abnormal returns (CAARs) for the sample are calculated to examine the stock price effect. Empirical results reveal that there is a negative impact of public reprimand imposition on the company’s stock price, which suggests poor corporate governance will lead to downward stock price performance.

Item Type: Article
Subjects: H Social Sciences > HF Commerce
Divisions: Faculty of Management (FOM)
Depositing User: Ms Rosnani Abd Wahab
Date Deposited: 14 Feb 2014 01:34
Last Modified: 14 Feb 2014 01:34
URI: http://shdl.mmu.edu.my/id/eprint/5191

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