The Impact of the Corporate Events on the Value of the Company

This work includes consideration of the topic of the impact of corporate events on the company's value. There are many corporate events that affect the company's market value, such as a mergers and takeovers (M&A) announcement, the publication of analyst forecasts and the announcement of the dividends. In this paper, a corporate event is an announcement of payment of dividends. With the use of event study, 106 events are considered from January 1, 2014 to January 1, 2018. The evaluation window is 100 days, and the event window is 7 days (3 days of the event, 3 days after the event). Then the events were divided into bad, good and neutral. The result of the study, it turned out that good events positively affect the value of the shares, and the bad ones have a negative impact. Moreover, the market begins to react to the corporate event before the date of announcement. But this only concerns bad and good events. Neutral events were statistically insignificant.