The excel is the work I have already competed from the list of questions and the word document is the assignment.
Portfolio Selection Project 1 1 Part One 1. Read Brown and Warner (Journal of Financial Economics, 1985) and summarize main analysis and equations 2. Reproduce key equations using equation editor Part Two 1. CORPORATE EVENT TO BE STUDIED IS DIVIDEND EMLIMIANTION 2. Create a sample of at least 30 observations using newswire sources. Factiva (available through Hofstra libraries homepage) provides Dow Jones and Reuters news reports. Log date and time (EST) of newswire report. Events that occur after market close will have event date on the next day. You must document your event with weblink, screenshot, etc. and include with submission. 3. Download historical data (-250, +10) around each event date for each company. Download contemporaneous market data (S&P500 index) for each company in your sample. You may use Yahoo! Finance (easiest) or CRSP (Center for Research in Security Prices) available through WRDS. To use WRDS you need to request access to receive approval. 4. Analysis will be based on: · Raw returns · Market-adjusted returns · Risk-adjusted returns · Draw conclusions and statistical significance 5. Analyze t-statistics for event dates and windows below. In addition, the t-statistics are computed for raw returns, market-adjusted returns, and risk-adjusted returns. There is a total of 15 t-statistics to compute. a) t = -1 b) t = 0 c) t= +1 d) t= (-1, 1) e) t= (0, 5) 6. Conduct cross-sectional analysis on abnormal returns only (Dependent variable) and several firm-specific (independent) variables relevant to your topic. Hypothesize why you chose these independent variables and justify with citation from academic literature (if possible). INDEPENDENT VARIABLES ARE: liquid funds or liquidity -net profit -amount of dividend AR (on day 0) = b0 + b1X1 + b2X2+ b3X3 Full output and interpretation required: t-statistics, p-value, R2, adjusted R2, F-statistic. 7. Deliverable is Word file (not pdf) of report following basic academic format: abstract, introduction, data/sample, methodology, empirical tests and results, conclusions and limitations. 8. Excel work submitted as separate file on BB Updated June 2020 COVER STUDENT'S NAME: COURSE: FINANCE 205 A PROFESSOR: ASSIGNMENT: EVENT STUDY TOPIC: DIVIDEND ELIMINATION DATE: 06/13/2020 SAMPLE Column1DATECOMPANYSOURCE 111/3/16MDC PARTNERhttps://seekingalpha.com/news/3221099-mdc-partnersminus-21_4-misses-in-q3-suspends-dividend 24/30/20DUNKIN BRANDS GROUPhttps://www.dividend.com/news/2020/04/30/dunkin-brands-group-suspends-dividend-covid-19-crisis/ 312/16/19Kewaunee Scientific https://www.bloomberg.com/press-releases/2019-12-16/kewaunee-scientific-reports-results-for-second-quarter-suspension-of-dividend 412/20/17PG&E http://investor.pgecorp.com/news-events/press-releases/press-release-details/2017/PGE-Announces-Suspension-of-Dividend-Citing-Uncertainty-Related-to-Causes-and-Potential-Liabilities-Associated-with-Northern-California-Wildfires/default.aspx 54/27/20General Motors https://www.cnbc.com/2020/04/27/general-motors-suspends-dividend-stock-buybacks-to-preserve-cash.html 65/15/12JCPenny https://www.marketwatch.com/story/jc-penney-swings-to-loss-suspends-dividend-2012-05-15 711/8/19Tupperware Brandshttps://ir.tupperwarebrands.com/stock-information/dividend-history 810/26/17Mattel’s https://money.cnn.com/2017/10/26/investing/mattel-q3-earnings/index.html 99/3/19Superior Industries International Inc.https://www.businesswire.com/news/home/20190903005880/en/Superior-Announces-Suspension-Quarterly-Common-Dividend 104/20/20Las Vegas Sands https://www.cnbc.com/2020/04/20/sheldon-adelson-fails-to-comply-with-a-mantra-hes-used-for-years-yay-dividends.html 114/24/20Moog inc.https://www.businesswire.com/news/home/20200424005074/en/Moog-Reports-Quarter-Results 125/21/18Libbey Inc.https://www.prnewswire.com/news-releases/libbey-suspends-quarterly-cash-dividend-to-further-prioritize-debt-reduction-and-strategic-investments-reaffirms-2018-guidance-300652141.html 134/15/20Estee Lauder https://markets.businessinsider.com/news/stocks/companies-cut-suspended-dividends-coronavirus-fallout-april-cancel-shareholders-pay-2020-4-1029134178#4-estee-lauder-suspends-its-dividend4 144/30/19Meridian Bioscience https://seekingalpha.com/news/3456241-meridian-bioscience-suspends-quarterly-cash-dividend 1512/20/18Wheeler REIT https://seekingalpha.com/article/4235418-wheeler-real-estate-investment-trust-after-suspension-of-preferred-dividends-now-what 164/17/20AMC Entertainment Holdings https://www.cnbc.com/2020/04/17/amc-says-it-can-withstand-theater-closures-until-thanksgiving.html 1712/2/16Allegheny Technologies https://www.cnbc.com/2016/12/02/allegheny-technologies-falls-more-than-10-percent-after-dividend-cut.html 182/28/18Frontier Communications https://www.barrons.com/articles/after-frontiers-dividend-cut-facebook-and-disney-to-telecoms-rescue-1519844768 1911/2/17RAIT Financial Trusthttps://markets.businessinsider.com/news/stocks/rait-financial-trust-suspends-dividend-on-common-shares-quick-facts-1006591374 204/2/20Dave And Busters Entertainment https://www.marketwatch.com/story/dave-busters-stock-rallies-on-earnings-beat-coronavirus-cost-cuts-2020-04-02 214/17/13Ambassadors Group (EPAX)https://seekingalpha.com/dividends/dividend-news?page=383 223/31/20 Cruise Operator Carnival https://www.barrons.com/articles/carnival-launches-6-billion-in-debt-and-stock-sales-its-also-suspending-its-dividend-51585667238 234/21/20HCA Healthcare https://www.reuters.com/article/us-hca-healthcare-results/hca-healthcare-suspends-dividend-buybacks-as-covid-19-delays-surgeries-idUSKCN2231SA 247/24/12AKSteel https://www.marketwatch.com/story/ak-steel-loss-widens-suspends-dividend-2012-07-24 257/25/12RadioShack https://www.dallasnews.com/business/2012/07/25/radioshack-suspends-its-dividend-to-shareholders-and-swung-to-a-second-quarter-loss/ 262/22/11Barnes and Nobles https://www.bloomberg.com/news/articles/2011-02-22/barnes-noble-falls-after-dividend-halt-same-store-sales-rise 279/23/08American International Group https://www.businesswire.com/news/home/20080923006326/en/AIG-Announces-Suspension-Common-Stock-Dividends 287/16/10Bp https://www.marketwatch.com/story/bp-suspends-dividend-after-deepwater-horizon-spill-2010-06-16 299/16/06Ford https://www.wsj.com/articles/SB115862778104667037 303/1/16Tesco https://www.oilandgas360.com/tesco-corporation-reports-fourth-quarter-2015-results-and-announces-suspension-of-dividend/ https://seekingalpha.com/news/3221099-mdc-partnersminus-21_4-misses-in-q3-suspends-dividendhttps://www.cnbc.com/2020/04/27/general-motors-suspends-dividend-stock-buybacks-to-preserve-cash.htmlhttps://www.marketwatch.com/story/jc-penney-swings-to-loss-suspends-dividend-2012-05-15https://www.businesswire.com/news/home/20190903005880/en/Superior-Announces-Suspension-Quarterly-Common-Dividendhttps://seekingalpha.com/dividends/dividend-news?page=383https://www.prnewswire.com/news-releases/libbey-suspends-quarterly-cash-dividend-to-further-prioritize-debt-reduction-and-strategic-investments-reaffirms-2018-guidance-300652141.htmlhttps://markets.businessinsider.com/news/stocks/rait-financial-trust-suspends-dividend-on-common-shares-quick-facts-1006591374https://www.oilandgas360.com/tesco-corporation-reports-fourth-quarter-2015-results-and-announces-suspension-of-dividend/ RAW DATA C O M P A N I E S 123456789101112131415161718192021222324252627282930 DAYSMDC PARTNERDUNKIN BRANDS GROUPKewaunee Scientific PG&E General Motors JCPenny Tupperware BrandsMattel’s Superior Industries International Inc.Las Vegas Sands Moog Inc.Libbey Inc.Estee Lauder Meridian Bioscience Wheeler REIT AMC Entertainment Holdings Allegheny Technologies Frontier Communications RAIT Financial TrustDave And Busters Entertainment Ambassadors Group Cruise Operator Carnival HCA Healthcare AKSteel RadioShack Barnes and Nobles American International Group Bp Ford Tesco -250$ 19.77$ 74.05$ 24.03$ 61.28$ 38.95$ 37.69$ 37.03$ 31.73$ 20.65$ 67.07$ 93.74$ 8.81$ 169.53$ 14.35$ 10.66$ 15.26$ 12.13$ 42.15$ 129.00$ 54.66$ 5.16$ 53.19$ 123.84$ 12.42$ 31.52$ 13.22$ 1,350.60$ 50.15$ 9.71$ 245.95 -249$ 19.68$ 73.99$ 23.55$ 61.19$ 38.75$ 37.96$ 36.57$ 31.53$ 19.80$ 67.04$ 93.64$ 8.30$ 170.33$ 14.25$ 11.08$ 15.25$ 11.53$ 43.05$ 135.00$ 53.89$ 5.10$ 53.10$ 124.56$ 12.13$ - 0$ 13.15$ 1,349.40$ 49.95$ 9.76$ 242.50 -248$ 20.44$ 73.59$ 24.01$ 61.18$ 38.25$ 36.10$ 36.87$ 31.03$ 19.35$ 67.14$ 91.75$ 8.07$ 169.92$ 14.00$ 11.33$ 15.44$ 11.90$ 41.40$ 130.50$ 52.65$ 4.96$ 53.07$ 125.55$ 12.15$ 31.00$ 12.97$ 1,353.00$ 49.66$ 9.66$ 240.30 -247$ 20.95$ 73.78$ 24.60$ 60.08$ 38.80$ 36.02$ 36.32$ 30.90$ 18.90$ 67.86$ 92.84$ 7.97$ 171.11$ 14.00$ 10.71$ 15.30$ 13.58$ 39.30$ 135.00$ 52.01$ 5.13$ 52.51$ 125.42$ 11.65$ 29.85$ 13.10$ 1,371.80$ 50.70$ 9.72$ 235.30 -246$ 20.73$ 73.70$ 23.66$ 61.09$ 38.09$ 36.11$ 36.95$ 30.05$ 18.50$ 68.07$ 94.94$ 8.14$ 170.42$ 14.00$ 10.15$ 15.40$ 12.94$ 37.35$ 134.50$ 51.68$ 5.10$ 51.90$ 127.23$ 11.09$ - 0$ 13.13$ 1,379.00$ 50.65$ 9.79$ 235.45 -245$ 20.81$ 74.27$ 23.40$ 60.77$ 38.53$ 35.86$ 37.26$ 30.46$ 18.85$ 67.05$ 93.29$ 8.17$ 170.39$ 14.10$ 9.98$ 15.50$ 12.29$ 39.00$ 143.50$ 50.75$ 5.37$ 52.27$ 124.09$ 10.75$ - 0$ 13.20$ 1,378.20$ 51.34$ 9.96$ 235.75 -244$ 21.79$ 73.80$ 23.30$ 60.37$ 38.21$ 35.98$ 36.60$ 30.85$ 18.35$ 67.87$ 91.35$ 8.58$ 172.50$ 14.10$ 9.14$ 15.16$ 10.77$ 40.05$ 147.00$ 48.94$ 5.40$ 52.47$ 125.52$ 9.21$ - 0$ 13.16$ 1,378.40$ 50.00$ 9.85$ 232.85 -243$ 21.14$ 74.02$ 29.30$ 60.59$ 37.58$ 36.00$ 35.69$ 31.06$ 18.35$ 67.43$ 91.09$ 8.51$ 172.46$ 14.00$ 8.90$ 14.71$ 10.59$ 37.95$ 149.00$ 49.63$ 5.46$ 53.57$ 125.61$ 9.12$ 24.62$ 13.39$ 1,387.80$ 49.67$ 9.95$ 241.35 -242$ 21.27$ 74.48$ 33.24$ 60.54$ 37.89$ 35.43$ 37.29$ 31.39$ 18.40$ 68.44$ 91.12$ 8.07$ 171.81$ 14.00$ 8.70$ 14.70$ 10.47$ 36.15$ 153.00$ 50.00$ 5.49$ 53.74$ 128.78$ 7.80$ 23.75$ 13.36$ 1,387.40$ 49.87$ 9.86$ 237.15 -241$ 20.88$ 74.68$ 31.98$ 61.22$ 36.56$ 33.99$ 36.57$ 30.69$ 18.05$ 66.57$ 91.21$ 8.04$ 170.30$ 13.90$ 8.66$ 14.59$ 10.46$ 36.15$ 150.00$ 51.50$ 5.39$ 54.80$ 126.51$ 8.45$ 24.50$ 13.45$ 1,402.20$ 50.04$ 9.86$ 241.80 -240$ 20.95$ 75.34$ 31.34$ 60.30$ 37.04$ 33.07$ 38.56$ 30.88$ 18.15$ 64.45$ 87.48$ 7.98$ 170.25$ 13.85$ 8.32$ 14.87$ 10.65$ 37.65$ 152.50$ 53.02$ 5.28$ 54.54$ 125.09$ 8.29$ 23.65$ 13.39$ 1,370.60$ 52.05$ 9.89$ 242.80 -239$ 21.18$ 74.37$