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ABSTRACT Our study of how the stock market reacts to sanction announcements by the French financial regulator from 2004 to 2017 finds that the market reacts negatively when a sanction… Click to show full abstract
ABSTRACT Our study of how the stock market reacts to sanction announcements by the French financial regulator from 2004 to 2017 finds that the market reacts negatively when a sanction is announced in the press. Cross-sectional regression models show that the penalties are too low to influence market reactions. Our results suggest that after the financial crisis of 2008, a plethora of news on financial wrongdoings has desensitized markets to announcements of sanctions against large companies.
Keywords:
markets react;
stock markets;
sanctions evidence;
regulatory sanctions;
react regulatory;
stock
Journal Title: Applied Economics
Year Published: 2019
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Journal Title: Applied Economics
Year Published: 2019
Link to full text (if available)
Share on Social Media: Sign Up to like & get
recommendations!