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How Cash Flow News and Discount Rate News Impact the Unexpected Stock Returns of Energy Firms of Pakistan

Author

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  • Kausar, Rabia
  • Qayyum, Abdul

Abstract

This study has used the model of Volunteeno (2000). The objective of this study is to analyse the impact of the cash flow news and discount rate news on stock returns of energy firms of Pakistan from 2000 to 2015. We used the balanced panel data technique. Estimated the random effect model after employing the Hausman Test. The results of this research show that only discount rate news is significance and positively related with unexpected stock return returns of energy firms which describe that increase in variability in the discount rate news increase the variability in unexpected stock returns. As cash flow news is insignificance which conclude that there is no permanent effect occur in the unexpected stock return due to change in book value and earning. Moreover these firms are large; it’s also concluded that large firms are not affected by the cash flow news

Suggested Citation

  • Kausar, Rabia & Qayyum, Abdul, 2018. "How Cash Flow News and Discount Rate News Impact the Unexpected Stock Returns of Energy Firms of Pakistan," MPRA Paper 91165, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:91165
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Cash Flow News; Discount Rate News; Unexpected Stock Returns; Energy Firms of Pakistan; Balance Panel Data;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • G0 - Financial Economics - - General

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