Impact of Corporate Scams on share prices: A study of Indian Stock market

Dawar, Gaurav; Goyal, Swati

doi:10.17722/ijme.v1i2.7

Cited by 2 publications

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“…In emerging markets like India, various studies have employed the event study methodology to analyse the reaction of specific stocks to various announcements such as earnings, Mergers and Acquisitions (M&A), and dividends. (see, e.g., Ahmad et al, 2022; Anwar et al, 2017; Arulsulochana et al, 2019; Belgaumi, 1995; Dawar & Goyal, 2013; Maitra & Dey, 2012; Mallikarjunappa & Dsouza, 2013; Manasseh et al, 2016). Various researchers have shown several studies to examine the effect of negative information announcements such as scams, frauds, crimes and more on stock prices.…”

Section: Literature Reviewmentioning

confidence: 99%

“…The study found that if a company’s profits remained intact before and after correction, it would be considered in evaluating the stock price. Dawar and Goyal (2013) investigated the impact of corporate scams on companies’ share prices, prompted by recent scandals, including the Satyam scandal in India. Using an event study approach and data from eight companies, the study found that the market efficiently absorbed all the information about the scam, and its impact on stock returns was insignificant.…”

Section: Literature Reviewmentioning

confidence: 99%

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Impact of Hindenburg Research Report on the Stock Prices of Adani Group Companies: An Event Study

Mallesha

Archana

2023

Asia-Pacific Journal of Management Research and Innovation

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The present study investigates the impact of the Hindenburg Research report on the Adani Group’s stock prices. An event study analysis was conducted over a 21-daywindow period, including 10 days prior to, 10 days after and the day of the event. The results showed that the majority of average abnormal returns and cumulative average abnormal returns were statistically significant during the observation period, particularly in the post-event period. This indicates that the Hindenburg Research report had a significant impact on the stock prices of Adani Group companies. The findings suggest that the Indian stock market may not be efficient in its semi-strong form. Nonetheless, it was also noticed that the stock prices did not immediately respond to the information in the report. This study has significance for investors, firms, policymakers, and regulators as they can utilize it to evaluate such announcement effect on stock prices in the Indian stock market.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Impact of Hindenburg Research Report on the Stock Prices of Adani Group Companies: An Event Study

Mallesha

Archana

2023

Asia-Pacific Journal of Management Research and Innovation

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The Hindenburg Research Report: An Event Study On Stock Prices of Adani Group of Companies

Ghosh

2023

SJCC

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The Hindenburg LLP, USA is renowned for its investment research on various companies. Recently, the firm released a research report on the Adani Group claiming that the Group is involved in the manipulation of stock prices. In this research, the researcher has considered 9 listed companies of the Adani Group to analyze the impact of research reports on stock prices. The researcher also considers the share price of SBI (the largest loan provider to the Group) and LIC (the largest stakeholder of the Group) for the study. To test the framed hypotheses OLS Market Model of Event Study Methodology has been applied. During the study it has been observed that the share price of Adani Total Gas has reduced by 56% followed by Adani Enterprise has reduced by 54%. Among all the Adani Group of Companies, the Share Price of Adani Total Gas has reduced more totaled by approx. 83% by 28th February 2023. Among all 9 listed companies of Adani Group, the research report has less effect on the share price of ACC Ltd. (21.169%) Followed by Adani Power (26.43%) and Adani Wilmar (26.48%). The research also showed that the announcement of the Hindenburg Research Report had a negative impact on the share prices of LIC and SBI, and both companies have failed to create any abnormal returns for their shareholders.

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Impact of Corporate Scams on share prices: A study of Indian Stock market

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Cited by 2 publications

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Impact of Hindenburg Research Report on the Stock Prices of Adani Group Companies: An Event Study

Impact of Hindenburg Research Report on the Stock Prices of Adani Group Companies: An Event Study

The Hindenburg Research Report: An Event Study On Stock Prices of Adani Group of Companies

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