Print ISSN : 2708-616X | Online ISSN : 2708-6178 | DOI: https://doi.org/10.62458/160224
Volume 6 | Number 2 | July – December 2021 | DOI: https://doi.org/10.62458/jafess.160224.6(2)41-50
Received : August 2021 | Revised: November 2021 | Accepted: December 2021
Muhammad M. Ma’aji, PhD,
CamEd Business School, Cambodia
Email: [email protected]
Lee Siang Hi, MSc,
CamEd Business School, Cambodia
Email: [email protected]
ABSTRACT
This study investigates the reaction of investors to annual earnings releases as reflected in the share price movements of common stocks and volume of trade during the COVID-19 pandemic. Event methodology is employed, and the returns in an event window, defined conventionally as the days before to days after a firm-specific public earnings announcement, are not abnormal. We provide an apparent example where investors did not react to firm-specific positive earnings announcements. This could be influenced by the government in response to COVID-19 as we have seen governments and central banks worldwide quickly enacted sweeping and sizable fiscal and monetary stimulus measures to limit the human and economic impact of the COVID-19 pandemic. These actions during an economic downturn or crisis have helped to stabilize the economy and increase confidence in the market.
Keywords: Event study, information and market efficiency, corporate earnings announcement, COVID-19, Cambodia market
