Monday, February 25, 2013

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Automotive and transport.
These results lead to the conclusion that the announcement of natural weaknesses all over financial reporting has a negative effect on stock impairment chance variable of automotive and transportation firms.

mesa 7: Gaussian statistical distribution outline. Industry: Consumer services.

4.4.5 Electronics.
At the bodyguard of the announcement of material weaknesses, the movement of dowry prices in the electronics industries (see display panel 8) presents the same patter that was found in the construction and consumer manufacturing business.
besides in this case the pass judgment plowshare price variation is positive (+0,42%), as well as the majority of share value changes, where the application of the 68 rule shows a ladder of data that falls betwixt -0,6518% and +1,5012%.
Consequently, these figures indicate that the announcement of material weaknesses over financial reporting has no impact on stock price variation of electronics firms.

Table 8: Gaussian distribution analysis. Industry: Electronics.

4.4.6 Energy and utilities.
In the energy and utilities industry, as in the automotive business, the application Gaussian distribution analysis (see Table 9) shows a direct negative correlation between the announcement of material weaknesses and share price variation.

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In fact, the expected share price variation equals to -0,34%, stating that at the date of the apocalypse of material weaknesses the average share value change is negative.
Furthermore, the 68,25% of share price variation is between -1,4238% and +0,7621%, which means that at the twenty-four hour period of the announcement the majority of share price variations is negative in this category.
Subsequently, these facts demonstrate that the announcement of material weaknesses over financial reporting has a negative impact on stock price variation of energy and utilities firms.

Table 9: Gaussian distribution analysis. Industry: Energy and Utilities.

4.4.7 Financial services.
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