The Impact of Law Enactment on the Stock Market Performance

<p>The paper is devoted to the analysis of the efficiency of the Russian Stock Market. With the help of Event-study technique the adopted laws are analyzed together with its experimental characteristics: popularity in media and time of adoption. Moreover, the companies&rsquo; sectors are analyzed from the point of being the determinants of some pattern.</p><p>The aims are the following:</p><p>1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Computation of the normal returns using OLS and SUR technique</p><p>2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Individual laws testing and testing taken together</p><p>3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Analysis of the companies&rsquo; differences in sectors and laws&rsquo; spheres.</p><p>4)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Analysis of laws characteristics&rsquo; influence on the stock market performance with the use of model</p><p>&nbsp;</p><p>The paper is attractive due to the analysis of seemingly unrelated things: law enactment and stock market processes.</p><p>The significance of the paper lies in the shortage of related foreign research and virtually absence of Russian works related to the given problem. As a result of study, one can say about the level of efficiency of the Russian stock market. Finally, there will be said whether the key dates of the laws are significant and whether its experimental characteristics and sectors of the companies are significant as well.</p>