In Developing Countries , Susmita Dasgupta, Benoit Laplante, Nlandu Mamingi, Development Research Group, The World Bank, April 1998 4. Hence, for the purpose of the analysis, we first present the results obtained at the most disaggregated level, i.e. the firm level. This is more likely to indicate the nature of the events to which capital markets appear to be more sensitive. In Table 5 and 7, we indicate the nature of events for which statistically significant increases or reductions in market values are observed.
Markets appear to react to the recognition of such investment or performance by the authorities.
The treatment plant will start working from March 15. The company has a representation project since 1970. As indicated in Section 3, it is possible to pool together events and test for the statistical significance of the average abnormal return for the events thus pooled. In Table 6, we have grouped together these government actions and treated them as a single set of events. However, the difference between government actions and other positive events fail to be statistically significant.