A study on Banks Stock Return reaction towards the Overnight Policy Rate announcement / Nurfarina Alias

Overnight Policy Rate (OPR) is one of the monetary policy tools controlled by the central bank, Bank Negara Malaysia (BNM). It is announced by Monetary Policy Committee (MPC) through its monetary policy meetings and through its announcement; news on OPR might affect the behavior of stock prices. Thi...

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Main Author:	Alias, Nurfarina
Format:	Thesis
Language:	English
Published:	2015
Subjects:	Monetary policy
Online Access:	https://ir.uitm.edu.my/id/eprint/100733/1/100733.pdf
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id	my-uitm-ir.100733
record_format	uketd_dc
spelling	my-uitm-ir.1007332024-09-10T03:15:55Z A study on Banks Stock Return reaction towards the Overnight Policy Rate announcement / Nurfarina Alias 2015 Alias, Nurfarina Monetary policy Overnight Policy Rate (OPR) is one of the monetary policy tools controlled by the central bank, Bank Negara Malaysia (BNM). It is announced by Monetary Policy Committee (MPC) through its monetary policy meetings and through its announcement; news on OPR might affect the behavior of stock prices. This will show whether the stock market is anticipated with the information given by the MPC meeting. The relationship between banks returns and OPR announcement will be investigated during' its MPC announcement. Applying an event study methodology which was first introduced by Fama (1969), this paper is conducted to measure the respond of banks return towards the constant OPR announcement made by MPC meetings from January 2012 to December 2013 of 8 local commercial banks that are listed in Bursa Malaysia. The results show that the banks' stock return reacts significant to the announcement of OPR. Perhaps, the central bank can benefit from the outcome of this study in order to apply this policy tool as a means to stimulate the stock market. 2015 Thesis https://ir.uitm.edu.my/id/eprint/100733/ https://ir.uitm.edu.my/id/eprint/100733/1/100733.pdf text en public degree Universiti Teknologi MARA, Sabah Faculty of Business and Management
institution	Universiti Teknologi MARA
collection	UiTM Institutional Repository
language	English
topic	Monetary policy
spellingShingle	Monetary policy Alias, Nurfarina A study on Banks Stock Return reaction towards the Overnight Policy Rate announcement / Nurfarina Alias
description	Overnight Policy Rate (OPR) is one of the monetary policy tools controlled by the central bank, Bank Negara Malaysia (BNM). It is announced by Monetary Policy Committee (MPC) through its monetary policy meetings and through its announcement; news on OPR might affect the behavior of stock prices. This will show whether the stock market is anticipated with the information given by the MPC meeting. The relationship between banks returns and OPR announcement will be investigated during' its MPC announcement. Applying an event study methodology which was first introduced by Fama (1969), this paper is conducted to measure the respond of banks return towards the constant OPR announcement made by MPC meetings from January 2012 to December 2013 of 8 local commercial banks that are listed in Bursa Malaysia. The results show that the banks' stock return reacts significant to the announcement of OPR. Perhaps, the central bank can benefit from the outcome of this study in order to apply this policy tool as a means to stimulate the stock market.
format	Thesis
qualification_level	Bachelor degree
author	Alias, Nurfarina
author_facet	Alias, Nurfarina
author_sort	Alias, Nurfarina
title	A study on Banks Stock Return reaction towards the Overnight Policy Rate announcement / Nurfarina Alias
title_short	A study on Banks Stock Return reaction towards the Overnight Policy Rate announcement / Nurfarina Alias
title_full	A study on Banks Stock Return reaction towards the Overnight Policy Rate announcement / Nurfarina Alias
title_fullStr	A study on Banks Stock Return reaction towards the Overnight Policy Rate announcement / Nurfarina Alias
title_full_unstemmed	A study on Banks Stock Return reaction towards the Overnight Policy Rate announcement / Nurfarina Alias
title_sort	study on banks stock return reaction towards the overnight policy rate announcement / nurfarina alias
granting_institution	Universiti Teknologi MARA, Sabah
granting_department	Faculty of Business and Management
publishDate	2015
url	https://ir.uitm.edu.my/id/eprint/100733/1/100733.pdf
_version_	1811769088743047168

A study on Banks Stock Return reaction towards the Overnight Policy Rate announcement / Nurfarina Alias

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