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- The price of dishonesty. Stock market effects of corporate malpractices and misconduct: the case of Hindenburg Research ReportsPublication . Albuquerque, Bruno Filipe Freitas; Martins, António Miguel ValenteThis dissertation aims to understand the impact of the disclosure of corporate malpractices and misconduct actions on the market value of target listed companies. We use an event study methodology that includes 50 public announcements of corporate malpractices and misconduct practices by a forensic investigation company - the Hindenburg Research. This company is a US investment research firm focused on activist short selling, which makes money if the target company's stock prices fall as a result of a short position in the target company before the report's public release. We analyse the abnormal returns generated by public disclosures announcements of corporate malpractices and misconduct by the short-seller Hindenburg. This study offers a new perspective on the impact of this information on the financial market. Specifically, it seeks to explore whether corporate malpractices and misconduct practices have a statistically significant impact on target stock prices, and whether the type of corporate malpractices and misconduct practices and the accumulated credibility of Hindenburg Research influence the magnitude of the impact caused by the announcements. The results show that there are negative abnormal returns in firms when bad news about malpractices and misconduct are revealed by the reports. Results show a higher negative stock market reaction to the Hindenburg reports when target firms are small, have higher leverage, higher Tobin’s Q, and corporate malpractice involves financial fraud. This means that the disclosure of negative or adverse information about target firms by this short seller is sometimes so negative that it seems to have a torpedo effect because of the sudden market reaction.