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Do New Product Announcements Have an Impact on Stock Prices of Consumer Electronic Firms?

Paul, Fredrik LU (2015) NEKN05 20152
Department of Economics
Abstract
This paper examines the stock price impact of new product announcements on the consumer electronic market by conducting event studies. Cumulative average abnormal returns are estimated for event windows of different lengths centered on the new product announcements. Cumulative abnormal idiosyncratic risk is estimated for the same event windows with the intention to research if new product announcements are associated with increased risk. Three out of five event windows are found to have positive cumulative average abnormal returns and all five event windows are found to have an increase in idiosyncratic risk on average. Different trading strategies are presented that can be adopted to exploit the empirical results.
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author
Paul, Fredrik LU
supervisor
organization
course
NEKN05 20152
year
type
H1 - Master's Degree (One Year)
subject
keywords
Event Study, Cumulative Average Abnormal Return, Cumulative Abnormal Idiosyncratic Risk
language
English
id
8057362
date added to LUP
2015-11-05 11:16:25
date last changed
2015-11-05 11:16:25
@misc{8057362,
  abstract     = {This paper examines the stock price impact of new product announcements on the consumer electronic market by conducting event studies. Cumulative average abnormal returns are estimated for event windows of different lengths centered on the new product announcements. Cumulative abnormal idiosyncratic risk is estimated for the same event windows with the intention to research if new product announcements are associated with increased risk. Three out of five event windows are found to have positive cumulative average abnormal returns and all five event windows are found to have an increase in idiosyncratic risk on average. Different trading strategies are presented that can be adopted to exploit the empirical results.},
  author       = {Paul, Fredrik},
  keyword      = {Event Study,Cumulative Average Abnormal Return,Cumulative Abnormal Idiosyncratic Risk},
  language     = {eng},
  note         = {Student Paper},
  title        = {Do New Product Announcements Have an Impact on Stock Prices of Consumer Electronic Firms?},
  year         = {2015},
}