Disentangling Interrelated Effects of Regulatory Changes on Shareholder Wealth: The Case of Motor Carrier Deregulation

The Effect Of Socially Activist Investment Policies On The Financial Markets: Evidence From The South African Boycott

“…For the latter, protracted negotiations make prior anticipation of legislative sanctions more likely. However, the event-study method has been shown to be effective for investigating legislative events (e.g., Schipper, Thompson, and Weil 1987;Binder 1988;Prager 1989), even when published findings point at a statistically and economicaJly insignificant financial market response to the imposition of sanctions. We were exceptionally careful to select the earliest disclosures of legislative events, using not only the traditional Wall Street Journal source but also other major newspapers (such as the New York Times, Los Angeles Times, and Washington Post) and the intraday Dow Jones broadtape.…”

Economic implications of proposed accounting for stock-based compensation

“…This results in less residual variation to be explained exogenously than in the traditional model [Schipper et al, 1987].…”

The Value Relevance of Earnings and Nonearnings Information in Regulated and Deregulated Markets: The Case of the Airline Industry

“…Schipper et al (1987) studies the effects of regulatory changes on shareholder wealth resulting from the Motor Carrier Act of 1980. This act had the effect of making truck-operating rights easier to secure and thereby allowing entry into new markets, which changed the rate setting practices of the past.…”

“…This act had the effect of making truck-operating rights easier to secure and thereby allowing entry into new markets, which changed the rate setting practices of the past. The results of Schipper et al (1987) demonstrates that several of the regulatory changes made prior to enactment of the Motor Carrier Act of 1980 resulted in negative share price reactions and reduced shareholder wealth owing to fear that deregulation will lead to increased competition in both routes and pricing.…”

“…Prior research (Schipper et al 1987;El-Gazzar and Sannella 1996) suggests that the implications of regulation and deregulation on share prices are dependent on the specific regulatory change and the operating environment of the firm. The airline industry regulation differed from the typical cost recovery pricing models of the utilities.…”