Short-Term Impact of COVID-19 on Indian Stock Market

The onset of the COVID-19 pandemic and lockdown announcements by governments have created uncertainty in business operations globally. For the first time, a health shock has impacted the stock markets forcefully. India, one of the major emerging markets, has witnessed a massive fall of around 40% in its major stock indices’ value. Therefore, we examined the short-term impact of the pandemic on the Indian stock market’s major index (NIFTY50) and its constituent sectors. For our analysis, we used three different models (constant return model, market model, and market-adjusted model) of event study methodology. Our results are heterogeneous and largely depend on the sectors. All the sectors were impacted temporarily, yet the financial sector faced the worst. Sectors like pharma, consumer goods, and IT had positive or limited impacts. We discuss the potential explanations for the same. These results may be useful for investors in safeguarding equity portfolios from unforeseen shocks and making better investment decisions to avoid large, unexpected losses.

COVID-19 Impact on Nifty Banks: An Event Study Methodology

The financial sector, because of its catalytic role in the economy, has always been in the eye of the storm in economic difficulties. Due to the pandemic, the stock market had lost about 27 percent by April 2020 and bank nifty has had a lion’s share in pushing the index down to this level. Uncertainty arose as the containment of the disease and the availability of vaccines remain uncertain; this contributed to the plunge in investor confidence. Because of the central role of banks in the development initiatives of the governments, COVID-19 has become a significant threat to the sustainability of the banks globally, especially in developing economies. However, we believe every downfall brings in new opportunities for the investors. Therefore, the present study attempted to study both the gloom and boon and observed that there were short-term abnormal returns to the investors of nifty banks in two different periods - the detection of the first case of COVID-19 in India and the lockdown periods in India. The impacts of both the events are calculated by applying Market and Risk Adjusted model, Market Adjusted Return model and Mean Adjusted Return model. The paper concludes that the impacts were insignificant during the first period and was quite significant in the subsequent period. Nifty banks have earned negative abnormal returns during the pre-lockdown period and positive abnormal returns during post lockdown period which indicates that the markets reacted positively as India implemented the first lockdown.

Market Panics, Frenzies, and Informational Efficiency: Theory and Experiment

In a market rush, the fear of future adverse price movements causes traders to trade before they become well informed, reducing the informational efficiency of the market. I derive theoretical conditions under which market rushes are equilibrium behavior and study how well these conditions organize trading behavior in a laboratory implementation of the model. Market rushes, including both panics and frenzies, occur more frequently when predicted by theory. However, subjects use commonly discussed, momentum-like strategies that lead to informational losses not predicted by theory, suggesting that these strategies may exacerbate both the occurrence and consequences of panics and frenzies. (JEL C91, D83, G14, G41)

Analisis Perbedaan Abnormal Return Sebelum dan Sesudah Pengumuman Jakarta Islamic Index

Tujuan penelitian ini adalah untuk menganalisis perbedaan rata-rata abnormal return pada saham JII sebelum dan sesudah peristiwa masuk JII, dan sebelum dan sesudah peristiwa keluar JII pada periode 2012 sampai dengan 2017. Penelitian ini menggunakan event study dengan melakukan pengamatan terhadap rata-rata abnormal return saham selama 7 hari sebelum (pre event), hari peristiwa event date, dan 7 hari setelah (post event) peristiwa pengumuman perubahan komposisi JII periode 2012 sampai 2017. Penelitian ini menggunakan data sekunder. Data yang digunakan dalam penelitian ini meliputi harga penutupan saham harian dan nilai penutupan JII. Expected return menggunakan model market-adjtusted-model. Sedangkan sampel yang digunakan adalah saham-saham yang termasuk dalam daftar JII pada Bursa Efek Indonesia. Hasil penelitian menunjukkan uji statistik terhadap abnormal return selama periode peristiwa tidak ditemukannya rata-rata abnormal return yang signifikan pada peristiwa masuk dan keluarnya saham-saham pada JII . Hal ini mengindikasikan bahwa kondisi pasar sudah efisien bentuk setengah kuat, investor tidak bisa mendapatkan abnormal return dengan memanfaatkan informasi baru yang ada, dimana sudah tidak terjadi asimetris informasi, terlihat dari reaksi investor pada t0 dan t+1 baik itu pada saham yang masuk dan saham yang keluar JII walaupun terdapat kebocoran informasi pada t-1 sudah ada reaksi investor.

Pengaruh Model Market Place Activity (MPA) Berbantuan Poster Terhadap Prestasi Belajar Siswa Kelas V SD IT At-Taufiq Al-Islamy Pada Tema 6 Subtema 1 Muatan IPA

Abstrak. Penelitian ini bertujuan untuk mengetahui pengaruh Model Market Place Activity (MPA) Berbantuan Poster Terhadap Prestasi Belajar Siswa Kelas V SD IT At-Taufiq Al-Islamy Pada Tema 6 Subtema 1 Muatan IPA. Penelitian ini termasuk penelitian eksperimen semu (quasi eksperimen) menggunakan desain Pretest-Posttest Nonequivalent control group design. Populasi dalam penelitian ini adalah seluruh siswa kelas V SD IT At-Taufiq Al-Islamy, yang berjumlah 20 siswa dan pengambilan sampel dengan menggunakan teknik Sampling Jenuh. Sampel diambil secara random yang menghasilkan 10 siswa kelas eksperimen dan 10 siswa kelas kontrol. Berdasarkan hasil penelitian diperoleh bahwa dengan menggunakan model Market Place Activity (MPA) berbantuan poster dapat memengaruhi prestasi belajar siswa Kelas V SD IT At-Taufiq Al-Islamy Pada Tema 6 Subtema 1 Muatan IPA, hal ini juga terlihat dari perbedaan antara rata-rata prestasi belajar pada kelas eksperimen dan kelas kontrol, pada kelas eksperimen rata-ratanya yaitu 84,8 dan rata-rata prestasi belajar pada kelas kontrol yaitu 66,2.Kata kunci: Market Place Activity (MPA) Berbantuan Poster, Prestasi Belajar IPAÂ

Leading and Managing Teams in Entrepreneurial Organizations: an Experiential Perspective

This article focuses on summarizing best practices for leading and managing diverse teams in entrepreneurial companies. Our approach is to build on sound academic principles, but we focus on bringing in a strong experiential perspective based on extensive discussions with active venture capital investors in the Silicon Valley/Bay Area innovation ecosystem. A sidebar article summarizes these findings. A key observation is that the most important indicator of success in entrepreneurial ventures can be attributed to lack of leadership and team performance, with business model/market factors less important and technology failures even less of a factor. We highlight best principles for building and leading diverse, inclusive, agile teams appropriate for the biopharma and technology industries.

Modeling market power on a constrained electricity network

A closed electricity network with three markets is modeled to illustrate the impacts of transmission constraints and market power on prices and economic welfare. Four scenarios are presented, the first two assume perfect competition with and without transmission constraints, while the second two model market power with and without transmission constraints. The results show that transmission constraints reduce total surplus relative to the unconstrained case. When firms exercise market power their profits increase, while consumer surplus and total surplus decrease. Some results are counter intuitive, such as price exceeding the marginal cost of the most inefficient generator in a market with perfect competition, caused by transmission constraints and Kirchoff’s voltage law governing power flows. The GAMS code used to solve the models is included in the appendix. Next steps for research involve building the model to replicate a real-world market, to simulate impacts of proposed market restructuring or to identify areas of deregulated markets at high-risk of market power abuse.