Factors influencing Share Prices of Game Companies

The present paper describes the research of studying factors affecting share prices of videogame companies, which are leaders in the production of MMO (Massively multiplayer online game) videogames. The main aim of this study is to examine and statistically estimate the influence and the impact of the events which are directly related to the videogame industry, and the financial factors, which also affect share prices of videogame companies. In order to achieve this aim the event study methodology was used in the framework of this research. There are 4 groups of the events which were researched: news about an increase of dividend payments, days of game releases, the acquisitions of companies by the researched companies and bargains of purchasing a part of shares of the researched companies by other companies. The analysis revealed that, firstly, the news about a rise of dividend payments and bargains of purchasing a part of shares of the researched companies were positively correlated with the share prices of the game companies, and the results were significant. Secondly, there was not any impact on the share prices of the game companies on the event day and post event days, and the acquisitions of companies by the researched companies does not influence the share prices of the researched videogame companies.