Market Reaction to Block Transactions of State-owned Firms

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Karimi, Ali | 2022

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Type of Document: M.Sc. Thesis
Language: Farsi
Document No: 55545 (44)
University: Sharif University of Technology
Department: Management and Economics
Advisor(s): Keshavarz Haddad, Gholamreza; Ebrahimnejad, Ali
Abstract:
In this research, the effect of investment and transfer of state-owned companies on stock transactions on the day of trading in the stock market is investigated using data related to 54 major transactions in the years 2007 to 2020 using the event study method. And the results of this research can provide evidence for the positive and negative effects of major shareholders on the company, including monitoring and tunneling. The results of the research show that investment transactions have a positive return on stock trading days and divestment transactions have a negative effect on stock trading days. This effect in the case of investment transactions first increases and then decreases with the increase in the ratio of purchased shares, and in the case of divestment transactions, the negative effect on the shares increases first and then decreases with the increase in the ratio of sold shares. The results of this research can provide evidence in the field of portfolio management as well as policies related to the stock market.
Keywords:
Investment ; Blockholder ; Firm Value ; Tunneling ; Monitoring ; State Owned Enterprises ; Divestment

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