scholarly journals INVESTOR SENTIMENT AROUND BUYBACK IN INDIAN STOCK MARKET

2020 ◽  
pp. 35-43
Author(s):  
Varsha P ◽  
Nithin Jose
Keyword(s):  
Stock Price ◽  
Abnormal Returns ◽  
Investor Sentiment ◽  
Share Price ◽  
The Public ◽  
Public Announcement ◽  
Earnings Per Share ◽  
Valuation Effect ◽  
Indian Stock Market ◽  
The Impact

While Buyback helps companies to invest in themselves by reducing the number of outstanding shares in the market, it increases the investor sentiment with respect to the company as the investors expect an increased Earnings Per Share, When the Earnings Per Share increases, the market react positively and shares prices will increase. This study attempts to examine the significance of stock price behavior around the public announcement of buyback. The effect of public announcement is studied by analyzing the behavior of abnormal returns of ten companies, which made buyback announcement during the financial year 2018–19. The companies were selected from securities exchange board of India (SEBI) and National Securities Exchange (NSE) website that portrays the public announcement of all such companies. This is an event study which attempts to measure the valuation effect of a corporate event, namely public announcement of buyback by examining the response of the stock price around the announcement of the event. To test the impact of public announcement Abnormal Returns (AR) and Cumulative Abnormal Returns (CAR) are computed. The study concludes that the buyback announcement does not have any significant impact on the share price. KEYWORDS: Buyback, CAR, Abnormal Returns, Investor sentiment

Impact on Stock Price by the Inclusion to and Exclusion from CNX Nifty Index

2012 ◽  
Vol 13 (1) ◽  
pp. 39-50 ◽  
Author(s):  
M. Selvam ◽  
G. Indhumathi ◽  
J. Lydia
Keyword(s):  
Stock Market ◽  
Stock Prices ◽  
Stock Price ◽  
Research Study ◽  
Stock Exchange ◽  
Valuation Effect ◽  
Index Maintenance ◽  
Indian Stock Market ◽  
The Impact ◽  
Indian Perspective

Changes in an index are a regular phenomenon and they take place due to the inclusion and exclusion of stocks from the index. The inclusion or exclusion of stocks creates great impact on the value of the firm. However, these changes are simply a short-lived event with no permanent valuation effect. The present research study analyzed the impact of the inclusion into and exclusion of certain stocks from National Stock Exchange (NSE) S&P CNX Nifty index with Indian perspective. The study provides evidence on whether the announcements of Nifty index maintenance committee have any information content. This will also demonstrate the efficiency of Indian stock market with particular reference to NSE. The study revealed that on an average, no permanent effects were observed on stock prices. It is also found from the study that the NSE reacted unfavourably to the inclusion and exclusion of stocks and it is impossible to earn any excess returns where the particular stocks are included or excluded from the index.

CEOs'/CFOs' Swearing by the Numbers: Does It Impact Share Price of the Firm?

2006 ◽  
Vol 81 (1) ◽  
pp. 1-27 ◽  
Author(s):  
Hsihui Chang ◽  
Jengfang Chen ◽  
Woody M. Liao ◽  
Birendra K. Mishra
Keyword(s):  
Information Asymmetry ◽  
Stock Price ◽  
Abnormal Returns ◽  
Financial Statements ◽  
Share Price ◽  
Revenue Recognition ◽  
Cross Sectional ◽  
Share Prices ◽  
The Impact ◽  
Bid Ask Spreads

We examine the impact on share prices of firms whose CEOs and CFOs certify their financial statements under oath, pursuant to the administrative order issued by the SEC on June 27, 2002. We hypothesize that (1) the certification provides assurance to investors by making disclosure more credible and by reducing information asymmetry between owners and management, and (2) the assurance value of certification is reflected in the stock price of the certifying company. Overall, the empirical results are consistent with our hypotheses. We observe, on average, positive abnormal returns for firms whose CEOs/CFOs certified their financial statements by August 14, 2002. Based on an analysis of bid-ask spreads, certifying firms experienced a significant decline in information asymmetry after certification. In cross-sectional analyses, we find abnormal returns are positively associated with firms that were under investigation, that used Andersen as their auditor, and that practiced aggressive revenue recognition.

scholarly journals Impact of merger & acquisition announcements on share price – a case of selected indian listed companies

2013 ◽  
Vol 1 (3) ◽  
pp. 384-391
Author(s):  
Poornima V ◽  
Chitra V
Keyword(s):  
Stock Price ◽  
Stock Exchange ◽  
Merger And Acquisition ◽  
Share Price ◽  
Stock Price Reaction ◽  
Study Methodology ◽  
Acquisition Announcements ◽  
Indian Stock Market ◽  
The Impact ◽  
Event Study Methodology

This study examines the impact of merger and acquisition announcements on share price towards acquiring companies during the year 2012 listed on National Stock Exchange, India. The investigation has been carried out using traditional event study methodology. The present study is an empirical analysis to examine the stock price reaction to information content of merger and acquisition announcements with a view of finding whether Indian stock market is semi-strong efficient or not. Impact has been analyzed between 7 days from the date of merger and acquisition announcement. The result divulges that around the announcement period the returns for the acquiring companies are higher. In the post merger announcement period there is an upward trend in the cumulative returnsimplying a positive result of the merger.

scholarly journals Impact of Dividends on Share Price Performance of Companies in Indian Context

2013 ◽  
Vol 4 (1) ◽  
pp. 4 ◽  
Author(s):  
Kavita Chavali ◽  
Nusratunnisa .
Keyword(s):  
Stock Price ◽  
Abnormal Returns ◽  
Share Price ◽  
Market Model ◽  
Indian Context ◽  
Announcement Date ◽  
Price Performance ◽  
Dividend Announcements ◽  
Study Methodology ◽  
The Impact

The study aims at finding the impact of dividends (cash and stock) on share price performance of companies in the Indian context. A sample of 67 fast moving consumer goods companies who made dividend announcements from April 2007 to August 2011 are taken. In this study, the Market Model Event Study Methodology has been employed to measure the effect of dividend announcements and its impact on the share price with a 41-day event window is taken. The stock price data is collected for 20 days prior to the dividend announcement, the share price on the announcement date (<em>An date</em>) t<sub>0</sub> and 20 days post the dividend announcement. The findings indicate that the market is found to react positively to dividend announcements and with a significantly positive Average Abnormal Returns (AAR) around the announcement date.

scholarly journals The Impact of COVID-19 on the Stock Price of Socially Responsible Enterprises: An Empirical Study in Taiwan Stock Market

2021 ◽  
Vol 18 (4) ◽  
pp. 1398
Author(s):  
Kuo-Jung Lee ◽  
Su-Lien Lu
Keyword(s):  
Stock Market ◽  
Stock Prices ◽  
Stock Price ◽  
Abnormal Returns ◽  
Recovery Phase ◽  
Socially Responsible ◽  
Cumulative Impact ◽  
Study Approach ◽  
Price Performance ◽  
The Impact

This study examines the impact of the COVID-19 outbreak on the Taiwan stock market and investigates whether companies with a commitment to corporate social responsibility (CSR) were less affected. This study uses a selection of companies provided by CommonWealth magazine to classify the listed companies in Taiwan as CSR and non-CSR companies. The event study approach is applied to examine the change in the stock prices of CSR companies after the first COVID-19 outbreak in Taiwan. The empirical results indicate that the stock prices of all companies generated significantly negative abnormal returns and negative cumulative abnormal returns after the outbreak. Compared with all companies and with non-CSR companies, CSR companies were less affected by the outbreak; their stock prices were relatively resistant to the fall and they recovered faster. In addition, the cumulative impact of the COVID-19 on the stock prices of CSR companies is smaller than that of non-CSR companies on both short- and long-term bases. However, the stock price performance of non-CSR companies was not weaker than that of CSR companies during times when the impact of the pandemic was lower or during the price recovery phase.

Stock Market Reaction on Green-Bond Issue: Evidence from Indian Green-Bond Issuers

2021 ◽  
pp. 097226292110225
Author(s):  
Rakesh Kumar Verma ◽  
Rohit Bansal
Keyword(s):  
Stock Returns ◽  
Financial Institutions ◽  
Stock Price ◽  
Stock Exchange ◽  
Abnormal Returns ◽  
Developed Countries ◽  
Low Carbon ◽  
Bond Issue ◽  
The Government ◽  
The Impact

Purpose: A green bond is a financial instrument issued by governments, financial institutions and corporations to fund green projects, such as those involving renewable energy, green buildings, low carbon transport, etc. This study analyses the effect of green-bond issue announcement on the issuer’s stock price movement. It shows the reaction of the stock price after the issue of green bonds. Methodology: This study is based on secondary data. Green-bond issue dates have been collected from newspaper articles from different online sources, such as Business Standard, The Economic Times, Moneycontrol, etc. The closing prices of stocks have been taken from the NSE (National Stock Exchange of India Limited) website. An event window of 21 days has been fixed for the study, including the 10 days before and after the issue date. Data analysis is carried out through the event study method using the R software. Calculation of abnormal returns is done using three models: mean-adjusted returns model, market-adjusted returns model and risk-adjusted returns model. Findings: The results show that the issue of green bonds has a significant positive effect on the stock price. Returns increase after the green-bond issue announcement. Although the announcement day shows a negative return for all the samples taken for the study, the 10-day cumulative abnormal return (CAR) is positive. Thus, green-bond issues lead to positive sentiments among investors. Research implications: This research article will help the government issue more green bonds so that the proceeds can be utilized for green projects. The government should motivate corporations and financial institutions to issue more green bonds to help the economy grow. In India, very few organizations have issued a green bond. It will be beneficial if these players issue green bonds, as it will increase the firms’ value and boost returns to the investors. Originality/value: The effect of green-bond issue on stock returns has been analysed in some studies in developed countries. This is the first study to examine the impact of green-bond issue on stock returns in the Indian context, to the best of our knowledge.

Market reactions to the inclusion of people with disabilities

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Claudia Araceli Hernández González
Keyword(s):  
Event Study ◽  
Stock Prices ◽  
Stock Price ◽  
Abnormal Returns ◽  
People With Disabilities ◽  
Market Reactions ◽  
Content Type ◽  
Study Methodology ◽  
Research Advance ◽  
The Impact

PurposeThis study aims to provide evidence of market reactions to organizations' inclusion of people with disabilities. Cases from financial journals in 1989–2014 were used to analyze the impact of actions taken by organizations to include or discriminate people with disabilities in terms of the companies' stock prices.Design/methodology/approachThis research is conducted as an event study where the disclosure of information on an organization's actions toward people with disabilities is expected to impact the organization's stock price. The window of the event was set as (−1, +1) days. Stock prices were analyzed to detect abnormal returns during this period.FindingsResults support the hypotheses that investors value inclusion and reject discrimination. Furthermore, the impact of negative actions is immediate, whereas the impact of positive actions requires at least an additional day to influence the firm's stock price. Some differences among the categories were found; for instance, employment and customer events were significantly more important to a firm's stock price than philanthropic actions. It was observed that philanthropic events produce negative abnormal returns on average.Originality/valueThe event study methodology provides a different perspective to practices in organizations regarding people with disabilities. Moreover, the findings in this research advance the literature by highlighting that organizations should consider policies and practices that include people with disabilities.

scholarly journals Impact of Financial Ratios on Stock Price: Evidence from Indian Listed Banks on NSE

2021 ◽  
Vol 11 (4) ◽  
pp. 5132-5144
Author(s):  
Nitish Rane ◽  
Pooja Gupta
Keyword(s):  
Stock Prices ◽  
Stock Price ◽  
Banking Sector ◽  
Study Data ◽  
Capital Adequacy ◽  
Financial Ratios ◽  
Annual Reports ◽  
Earnings Per Share ◽  
Net Interest Margin ◽  
The Impact

This study aims to examine the impact of financial ratios on the stock prices of companies listed on NIFTY Bank. Nifty Bank is a sub-index of NIFTY 50 and has various listed banks included based on the criteria given by NSE. This study data has been taken from the period 2010-2019 and taken from the company annual reports. The analysis is done using panel data regression and other tests to verify the best model for the dataset. The results obtained from this study show that the capital adequacy ratio and the dividend payout ratio do not impact the stock price. In contrast, earnings per share, net NPA ratio, and basic earnings per share, net profit margin, and net interest margin exhibited a relationship with the stock price. In the Indian context, there is less research available on this topic, and the idea chosen for the study is original. Along with this, the data collected for the study and the code used for analysis is original work. New investors can use the results of this study in the Indian stock market to analyze a stock and take proper investment decisions. Another practical usage of this study is that banking sector companies can improve their ratios to attract new investors.

scholarly journals PENGARUH EARNING PER SHARE (EPS) DAN PERTUMBUHAN PENJUALAN TERHADAP HARGA SAHAM PADA PERUSAHAAN FARMASI YANG TERDAFTAR DI BURSA EFEK INDONESIA (BEI)

2021 ◽  
Vol 5 (2) ◽  
Author(s):  
Desi Nurul Hikmati Ilahiyah
Keyword(s):  
Capital Market ◽  
Stock Prices ◽  
Stock Price ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Multiple Linear Regression Analysis ◽  
Share Price ◽  
Pharmaceutical Companies ◽  
Sales Growth ◽  
Earnings Per Share

On investing in the capital market one thing that must be considered is the stock price. The price of shares offered on a stock exchange is related to the achievements of the company. The share price can be purchased by earnings per share (EPS) and sales growth. The purpose of this study was to study the effect of earnings per share (EPS) and sales growth on the stock prices of pharmaceutical companies listed on the Indonesian stock exchange (IDX). The population in this study were 11 pharmaceutical companies that were accepted on the Stock Exchange and sampled through purposive sampling techniques as many as 9 companies in the 2015-2019 period. This study uses multiple linear regression analysis. EPS partial research results positive and significant EPS on EPS stock prices EPS has tcount (54,435)> ttable (2,02439), on the other hand, partial sales growth, positive and significant effect on stock prices, economic growth, thitung sales value ( -3,525) table (-2.02439). Simultaneous EPS and positive and significant growth in stock prices due to the results obtained Fcount (1560,773)> Ftable (3.25).

Do firms harvest from political connections during general elections? Case of Pakistan

2020 ◽  
Vol 27 (1) ◽  
pp. 258-273
Author(s):  
Ayesha Ashraf ◽  
M. Kabir Hassan ◽  
Khurram Abbas ◽  
Qamar Uz Zaman
Keyword(s):  
Stock Returns ◽  
Abnormal Returns ◽  
Share Price ◽  
Market Model ◽  
Political Connections ◽  
Content Type ◽  
Connected Group ◽  
Playing Field ◽  
General Elections ◽  
The Impact

Purpose This paper aims to examine the impact of general elections on the stock returns of the politically connected group affiliated firms of Pakistan. Design/methodology/approach This study uses the market model to assess the impact of political connections (PCs) on abnormal stock returns, before and after election events. We have used share price data of non-financial firms of Pakistan for the years 2008-2013. Findings It has been found that behavior of cumulative average abnormal returns (CAAR) is significantly different for standalone and politically connected group affiliated firms. The results reveal that CAARs of politically connected group affiliated firms have experienced less deviation as compared to stand alone firms. Therefore, it is argued that politically connected group firms may reduce the impact of political uncertainty on stock returns in comparison to stand alone firms. Practical implications This study is helpful for policy regulators of Pakistan to devise appropriate policies to maintain a level playing field for politically connected and standalone firms. Originality/value This study provides a new dimension to understand the role and association of PCs and general elections with stock markets returns.

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