Market Capitalization Changes For S&P 500 Inclusions And Exclusions

A Regression Analysis

Business & Finance, Finance & Investing, Finance
Cover of the book Market Capitalization Changes For S&P 500 Inclusions And Exclusions by Colin Tissen, GRIN Verlag
View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart
Author: Colin Tissen ISBN: 9783956876882
Publisher: GRIN Verlag Publication: June 19, 2015
Imprint: GRIN Verlag Language: English
Author: Colin Tissen
ISBN: 9783956876882
Publisher: GRIN Verlag
Publication: June 19, 2015
Imprint: GRIN Verlag
Language: English

Research Paper (postgraduate) from the year 2015 in the subject Business economics - Investment and Finance, grade: 9.0/10, Maastricht University, language: English, abstract: Previous research has already proven that firms which get included in or excluded from the S&P 500 index experience stock price changes that ultimately result in market capitalization changes. The causes of these changes has extensively been examined, but a consensus on the true cause has not yet been reached. In this paper the market capitalization effect is examined by making a distinction between the reasons for inclusions and exclusions. It is argued that expected events, like bankruptcy and index-downgrading, have lower price effects than unexpected events, which include mergers and acquisitions. By usage of a regression analysis it is concluded that there is no difference in price effects between the individual reasons for inclusions and exclusions. However, when the reasons are grouped into unexpected and expected events there is a significant effect for the inclusions. Firms which expectedly enter the index experience lower market capitalizations changes than firms which unexpectedly entered the index. This effect could not be proved for exclusions.

View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart

Research Paper (postgraduate) from the year 2015 in the subject Business economics - Investment and Finance, grade: 9.0/10, Maastricht University, language: English, abstract: Previous research has already proven that firms which get included in or excluded from the S&P 500 index experience stock price changes that ultimately result in market capitalization changes. The causes of these changes has extensively been examined, but a consensus on the true cause has not yet been reached. In this paper the market capitalization effect is examined by making a distinction between the reasons for inclusions and exclusions. It is argued that expected events, like bankruptcy and index-downgrading, have lower price effects than unexpected events, which include mergers and acquisitions. By usage of a regression analysis it is concluded that there is no difference in price effects between the individual reasons for inclusions and exclusions. However, when the reasons are grouped into unexpected and expected events there is a significant effect for the inclusions. Firms which expectedly enter the index experience lower market capitalizations changes than firms which unexpectedly entered the index. This effect could not be proved for exclusions.

More books from GRIN Verlag

Cover of the book Die heutigen Nahua und der Ring aus Tlalocan by Colin Tissen
Cover of the book Alterserwerbstätigkeit und Ruhestand im Vergleich zwischen Deutschland und Polen by Colin Tissen
Cover of the book Konfliktbearbeitung in betrieblichen Organisationen unter Anwendung des Psychodramas by Colin Tissen
Cover of the book Heilige und Heiligsprechung by Colin Tissen
Cover of the book Handels- und steuerrechtliche Behandlung von Aktienoptionsprogrammen (Stock Options) im Jahresabschluss by Colin Tissen
Cover of the book Die Ermordung der Agrippina by Colin Tissen
Cover of the book L´image de la femme africaine au travers des auteurs africains. Guy Menga 'La marmite de Koka M´Bala' et Mariama Bâ 'Une si longue lettre' by Colin Tissen
Cover of the book Berthe Morisot - eine impressionistische Malerin by Colin Tissen
Cover of the book Kurzdarstellung ausgewählter Gärten der Renaissance, des Barock, des Klassizismus und des ausgehenden 19./ beginnenden 20. Jh. in den Niederlanden und Referenzobjekte in Deutschland by Colin Tissen
Cover of the book Befunde und Ursachen zur Bildungssituation türkischer Kinder und Jugendlicher mit Migrationshintergrund by Colin Tissen
Cover of the book Diskussion des Problems einer Staatsinsolvenz und die Möglichkeiten ihrer Bewältigung by Colin Tissen
Cover of the book Beurteilungskriterien von Rating-Agenturen - eine kritische Würdigung by Colin Tissen
Cover of the book Swarming, drone movements, foraging behavior and associated plants of stingless bees (Trigona iridipennis Smith) in Kerala by Colin Tissen
Cover of the book Jugend und Drogen - ein Spannungsverhältnis? by Colin Tissen
Cover of the book Textanalyse zu Beiträgen von Mearsheimer, Keohane, Nye by Colin Tissen
We use our own "cookies" and third party cookies to improve services and to see statistical information. By using this website, you agree to our Privacy Policy