Impact of FSA decision no. 23 from 5th February, 2014: event study approach
Impact of FSA decision no. 23 from 5th February, 2014: event study approach
Author(s): Dumitru-Cristian Oanea, Stefan-Bogdan VasilescuSubject(s): Business Economy / Management, Labor relations, Transformation Period (1990 - 2010), Present Times (2010 - today)
Published by: Fundatia Română pentru Inteligenta Afacerii
Keywords: Event study; Financial investment fund; Stock prices; Financial Supervisory Authority; Capital market;
Summary/Abstract: The aim of this paper is to study the impact of Romanian Financial Supervisory Authority (FSA) decision number 23, which was taken on the 5th February of, 2014. This decision canceled the measure number 11 from August 12th, 2005, through which an investment fund cannot buy other investment fund’s stocks. By applying the new FSA decision, each investment fund, namely SIF 1 – Banat Crisana, SIF 2 – Moldova, SIF 3 – Transilvania, SIF 4 – Muntenia, and SIF 5 – Oltenia can buy stocks from each other. Our results show that the stocks return of the five investment funds, reacted significantly in the first day after the event, when a significant positive increase of 4.69% in the average return was recorded. Moreover, it seems that after 5 days the stock return of SIF3 has the tendency to return to pre-event values.
Journal: Network Intelligence Studies
- Issue Year: 3/2015
- Issue No: 06
- Page Range: 109-116
- Page Count: 8
- Language: English