Year of Graduation
The Reaction of Share Prices on the Financial Decisions of Companies
Financial Markets and Financial Institutions
Whatever a company is focused on, it cannot avoid providing financial statements, in particular applying for loans and issuing securities. Therefore, an evident interconnectedness of the latters and the share prices of a company could not be denied. Yet, little is done to analyze the scope of the relationship. The goal of the study is to fulfill this gap in Russian literature by applying technics of an event study analysis on a sample of companies that are taking into consideration while calculating MICEX from January 2000 to March 2016. The main result of the study is that share prices positively react to changes in a size of loans, but negatively – to a volume of issued securities. The study also pays attention how the result affects a stock market.