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http://dx.doi.org/10.6106/KJCEM.2019.20.5.003

A Study of the Deregulation of New Apartment Sales Price and the Stock Price of Construction Firms  

Yang, Choonsik (Department of Real Estate Studies, Konkuk University)
Publication Information
Korean Journal of Construction Engineering and Management / v.20, no.5, 2019 , pp. 3-11 More about this Journal
Abstract
This study is designed to examine the stock price of construction firms which are affected by the deregulation of new apartment sales price. As empirical methodology, it uses the traditional event study analysis to test the influence of the deregulation of new apartment sales price and the regression analysis to test which variables are related. The results of this study are summarized as follows : First, the cumulative abnormal return of stock is positive when government announced the deregulation of new apartment sales price. The cumulative abnormal return of stock for 21 trading day before -10 to +10 day is 25.51% which is significant different from zero at 1 percent level. This result suggests that the deregulation of new apartment sales price conveys good information to stock market that the firms performance will be good in the future. Second, in the regression analysis this study shows that the cumulative abnormal return of stock is related to firm's profit margin ratio.
Keywords
Construction Firms; Cumulative Abnormal Return; Deregulation of New Apartment Sales Price; Efficient Market Hypothesis;
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