Event Study - Rethinking Corporate Governance Essay

Event Study - Rethinking Corporate Governance - Essay Example Inbev is a giant brewer which is based in Belgium and Anheuser Busch is also a brewer that is based in the United States of America. Inbev acquired Anheuser Busch-Inbev and the first announcement on the acquisition was made on 11th June 2008 as mentioned above. The paper shall first carry out an analysis of the data and techniques used to carry out the event study, secondly the paper shall carry out an event study for an event window of 21 days around the event announcement day which is made up of 10 days before the even t and 10 days after the event, thirdly, the paper shall summarize the findings obtained after carrying out the event study and finally the paper shall interpret the results and offer a conclusion on the event study. Data and techniques The data used for this event study is the daily adjusted closing stock prices for Anheuser Busch-Inbev for the period between 9th August 2007 and 25th June 2008 and the daily adjusted closing prices of the Euronext BEL-20 Index for the same period of time. The adjusted closing prices for both the company and the index were obtained from yahoo finance database (Yahoo finance 2012a and Yahoo finance 2012b). The adjusted closing prices were then used to calculate the daily returns on the company’s share price and the daily returns on the index which represents the return of the market. This is done by using the formula P1/P-1-1where P1 is the adjusted closing price of the stock or the index in day 1 and P-1 is the adjusted closing price of the same stock or index in the previous day. The returns of the Anheuser Busch-Inbev for the 200 days before the event window which is the period between 9th August 2007 and 26th of May 2008 were regressed on daily returns of the index between the same period to arrive at the value of beta and alpha for the company which were then used to calculate the expected returns of the stock during the event window using the market model method. The cumulative abnormal returns during the event window were then analyzed to determine if the event resulted into a significant change in the stock price during the event window (Lee 2001). Event study results The daily returns of both the Anheuser Busch – Inbev stock and the Euronext BEL 20 index were calculated using the formula explained above. The regression of the daily returns of the stock on the returns of the index for the 200 days before the event window resulted into a beta of 0.09 which is the risk of the stock in relation to the market. The regression also resulted into an alpha value of -0.004%. The alpha and beta for Anheuser Busch – Inbev is then used to calculate the expected returns of the stock for window period which is 10 days before the announcement of the merger the date of the merger announcement and 10 days after the announcement of the merger. The actual returns are then subtracted from the actual returns to arrive at the abnormal returns as shown in the event window table

A critical assessment of a marketing execution Essay - 2

A critical assessment of a marketing execution - Essay Example Hofstede makes it easy for people studying in the area of global marketing especially executing efficient strategies to understand concepts in the same area. The Hofstede model emerges on top of other models developed over the past fifteen years because of its application in advertising as well as global marketing. Different global institutions continue to apply the model by Geert Hofstede of national culture during the whole marketing and global branding exercise. Hofstede’s dimensional framework contributes to the development of theories relating to the behaviour depicted by consumers. Other scholars further develop the theory by explaining it in terms of differences that exist in the concepts of personality, self, and identity (Lee, 1966, 112). The elements, then help in explaining differences in the strategy of communication and branding. They also cover processing of information among them variations in categorisation and perception with impact on both mass communication and interpersonal communication aspects. The way marketing works also fall in this category. This paper takes a critical evaluation of the application of Hofstede’s cultural dimensional model in Italy and Canada. At the end, the author of the paper gives his views on the implications of the model when Canadian marketers present their views on the marketing environment in Italy. Cultural elements in Italy and Canada are several and include among others materi al culture, aesthetics, language, religion, education, social organisation as well as values and attitudes. A reflection of values of the society and nature takes place through the language. Canadians speak English while Italians speak Latin. Both Canada and Italy boarder countries some of which speak different languages from what the natives in the two countries speak. The influence of Espanyol in Canada as well as the influence of English and French in Italy leads to the development of sub-cultural languages in form