Analysing the market reaction to the announcement to the market on 20-September 2018

Running head: COMPANY ACCOUNTING
Company Accounting
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1COMPANY ACCOUNTING
Table of Contents
1. Analysing the market reaction to the announcement to the market on 20-September 2018:......2
b. Recommendation provided to Premier, which might reduce the likelihood of it might being
subjected:.........................................................................................................................................3
References:......................................................................................................................................6

2COMPANY ACCOUNTING
1. Analysing the market reaction to the announcement to the market on 20-September
2018:
Figure 1: Price action of Premier Investments Limited on 20-September 2018
(Source: Au.finance.yahoo.com 2019)
The above figure provides information about the share price action of Premier Investment
Limited over the period of time. In addition, the share price of the organisation has mainly
declined on 20th September 2018 over the period of time. The share price of company mainly fell
from the high of 19.75 to the lows of 19.00 on 20th September 2018 after the disclosures made by
management regarding the write-down of their casual wear brand value by $30 million in their
financial report of 28th July 2018. Moreover, the one-day price action of the company continues
to next trading days, where the share price continued to decline to the levels of $13.61 in 1st Feb
2019. Therefore, it could be identified that the decisions that was made by the management of
writing down the value of their brand name by $30 million was negatively reflected on their
share price. This mainly reduced the share value of Premier Investment Limited by -31.09%,