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Article Dans Une Revue Applied Economics Année : 2019

How stock markets react to regulatory sanctions? Evidence from France

Résumé

Our study of how stock market reacts to sanction announcements by the French financial regulator from 2004 to 2014 finds that market reacts negatively when a sanction is announced to the firm or in the press, but that market fails to react at the opening of proceedings for possible sanctions. 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 of financial wrongdoings have desensitized markets to announcements of sanctions against large companies
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hal-02376764 , version 1 (22-11-2019)

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Thierry Kirat, Amir Rezaee. How stock markets react to regulatory sanctions? Evidence from France. Applied Economics, 2019, 51 (60), ⟨10.1080/00036846.2019.1644443⟩. ⟨hal-02376764⟩
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