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Copernican Journal of Finance & Accounting
Article . 2023 . Peer-reviewed
License: CC BY ND
Data sources: Crossref
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KOREAN MUSIC AWARDS AND ABNORMAL STOCK RETURNS

Authors: Hafida Nur Chofifah; Ani Wilujeng Suryani;

KOREAN MUSIC AWARDS AND ABNORMAL STOCK RETURNS

Abstract

The global success of the K-pop music industry impacts the investment climate of the entertainment industry in the South Korean stock market. One of the driving factors attracting investors is the awards obtained by the K-pop idols. Hence, this event study investigates whether idols’ receiving awards creates stock abnormal returns (ARs) and cumulative abnormal returns (CARs). We collected five-day stock price data surrounding the events from 2018 to 2019 for the four entertainment companies. Using mean difference tests, we analyzed the movements of the stock returns. Our results show the appearance of positive and negative ARs dan CARs, indicating that investors react differently to the information contained in award announcements. This implies a deviance from the efficient market hypothesis and that investors behave irrationally whom investment decision affects the market. For this reason, companies should select awards when involving their idols.

Related Organizations
Keywords

behavioral finance, HF5001-6182, Korean Stock Market, HG1-9999, abnormal returns, Business, event study, Finance

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
1
Average
Average
Average
Published in a Diamond OA journal