Impact of Corporate Scams on share prices: A study of Indian Stock market
Keywords:
Abnormal Return, AAR, CAARAbstract
This paper studied the impact of the corporate scams on the share prices of the companies. In the pre-fraud period, the typical fraudulent firm has a higher valuation, invests more and exhibits higher sensitivity of investment than industry peers. The fraud period, by contrast, is characterized by sign cant drops in valuation and investment.Corporate scandals around the world in recent years especially Satyam scandal in India created a need contributed to produce quantitative measures on ownership and to estimate their impact on the value and decision-making process of companies. The study of 8 companies has been made which has undergone the scam in the past 8 years& their impact on Indian Stock Market. Event study has been used to examine the impact of corporate scams on stock returns. The AABRs and CAARRs of overall sample are insignificant at 5% level of significance. The study concluded that the market is very efficient they absorb all the information regarding the event.
References
Afsharipourafra (2007) ―corporate governance convergence: lessons from the indian experience ‖ retrieved from http://papers.ssrn.com/sol3/papers.cfm?abstract_i d=1413859
Ak. Bhattacharyya, a. Raychauduri and sv. Rao ― economic consequences of
a. ‗regulation of corporate governance‘: evidence from india retrieved from www.ssrn.com/abstract=640842
Amitha sehgal and j mulraj (2008)
a. ―corporate governance in india:
b. moving gradually from a regulatory model to a market-driven model — a survey” retrieved from http://www.palgravejournals.com/jdg/journal/v5/ n3/abs/jdg20089a.html
Brazel . F. Joseph, jones. L . Keith, warne. C. Rick (2010), ―how do non-professional investors react to fraud red flags‖ retrieved from http://papers.ssrn.com/sol3/papers.cfm?abstract_i d=1534888
Bs black (2007) ―can corporate governance reforms increase firms‘ market values? Evidence from india‖ retrieved from http://ssrn.com/abstract=914440
Choudhariarun(2006)‖ corporate accounting disasters and the aftermath‖icfai journal of audit practice, vol. 3, no. 1, pp. 7-18, january 2006
j. Patel (2003) ―calenders effect in the indian stock market‖ retrieved from www.cluteinstitute- onlinejournals.com/pdfs/757.pdf
ms. Khan (2007) ―corporate governance: the indian capital market law and international standards‖ retrieved from www.papers.ssrn.com/sol3/.../ssrn_id1443804
a. _code1259952.pdf?...1
p.m vasudev (2007) ―capital stock, it‘s shares and their shareholders- a comparison of india and dilware‖ retrieved from www.papers.ssrn.com/sol3/papers.cfm?abstract_i d=913282
R. Chakrabarti (2008) ―corporate governance in india- evolution and challenges‖ retrieved from www.unpan1.un.org/intradoc/groups/public/.../u npan023826.pdf
R. Chakrabarti, s. Sarkar (2009)― corporate governance in an emerging market- what does the market trust?‖ retrieved fromwww.isb.edu/faculty/upload/doc911200912 8.pdf
R. Zeenat (2007) ―the impact of corporate governance on s
tock market performance‖ retrieved fromhttp://www.oppapers.com/essays/the-
a. impact-of-corporate-governance-on/232944
s. Nidhi, s. Singh, dr t. Ahmad (2008)
a. ―corporate governance: the indian
b. Capital market lawand international standards‖retrieved from http://papers.ssrn.com/sol3/papers.cfm?abstract_i d=1443804
T. Busfatimah(2009) ―12 years of major
a. Financial scams in india‖ retrieved from
b. http://acessmyliabirary./articals.fhd id=47689
www.nseindia.com
