Open AccessEarnings shocks: An event study on Boursa Kuwait
Author(s) -
Saad B F M AlHajraf
Publication year - 2021
Publication title -
international journal of research in business and social science
Language(s) - English
Resource type - Journals
ISSN - 2147-4478
DOI - 10.20525/ijrbs.v10i3.1067
Subject(s) - earnings , abnormal return , stock exchange , event study , post earnings announcement drift , stock (firearms) , shock (circulatory) , insider trading , business , monetary economics , insider , economics , stock price , earnings response coefficient , financial system , accounting , finance , medicine , mechanical engineering , paleontology , context (archaeology) , biology , series (stratigraphy) , law , engineering , political science
This study investigates the effects of earnings announcements on stock prices in Boursa Kuwait, formerly known as the Kuwait Stock Exchange (KSE). The data spans the period 2018–2020, and both positive and negative earnings announcements are employed as shock events and their effects assessed. The study results show that there is a statistically abnormal rate of return before and after the earnings announcements and that most abnormal returns are just after the earnings announcement. This most likely indicates that Boursa Kuwait is a semi-strong efficient stock market. One important implication is an indication that insider-related trading might be absent in Boursa Kuwait.