The Designation and Removal of Trustee Stock Status: Wealth Effects

Publication Type

Journal Article

Publication Date

4-2004

Abstract

This study investigates the impact of trustee stock status announcements on shareholders' wealth in Singapore. An event study methodology is used to ascertain the abnormal returns around the announcement day. The results show that there is a positive and permanent wealth effect on trustee stocks resulting from designation announcements. Conversely, when trustee stocks lose their status, the significant negative abnormal returns suggest that shareholders' wealth is adversely affected. This reaction, however, appears to be a temporary phenomenon and is not simply a mirror image of designation announcements. The differences in the underlying regulatory structures partially explain the findings.

Keywords

Trustee stocks, event study, Singapore

Discipline

Asian Studies | Business | Finance and Financial Management | Portfolio and Security Analysis

Research Areas

Finance

Publication

Journal of Business Finance and Accounting

Volume

31

Issue

3-4

First Page

505

Last Page

538

ISSN

0306-686X

Identifier

10.1111/j.0306-686X.2004.00548.x

Publisher

Wiley

Additional URL

https://doi.org/10.1111/j.0306-686X.2004.00548.x

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