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The Reaction of Bahrain Bourse to Announcement of Annual Financial Results

International Review of Business Research Papers, Vol. 12, No. 1, March 2016, pp.64-75.

Posted: 3 Jan 2020

See all articles by Iqbal Thonse Hawaldar

Iqbal Thonse Hawaldar

Kingdom University - Department of Accounting and Finance

Date Written: March 3, 2016

Abstract

The study tests the reaction of Bahrain Bourse to 2014 annual financial results announcement. The study is based on 30 companies. The researcher used event study methodology. The behaviour of average abnormal returns (AARs) and cumulative average abnormal returns (CAARs) are examined for 30 days prior to and 31 days after the announcement of annual financial results. Runs test, sign test and t-test statistics on AARs are statistically not significant. However, t-values on CAARs are statistically significant. Therefore, we conclude that Bahrain Bourse is not efficient in the semi-strong form. The findings help market regulators to initiate measures to ensure market efficiency.

Keywords: efficient market hypothesis, semi-strong from of EMH, stock price reactions to earnings announcement, t-test, sign test, stock market anomaly

JEL Classification: G13, G14, G15, G18, C32, F30

Suggested Citation

Hawaldar, Iqbal Thonse, The Reaction of Bahrain Bourse to Announcement of Annual Financial Results (March 3, 2016). International Review of Business Research Papers, Vol. 12, No. 1, March 2016, pp.64-75. , Available at SSRN: https://ssrn.com/abstract=3513332

Iqbal Thonse Hawaldar (Contact Author)

Kingdom University - Department of Accounting and Finance ( email )

Bahrain

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