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Purpose: This study aims to understand investors' reactions to news on fraud and pecuniary and regulatory action in privately owned and government-owned banks. Design/methodology/approach: To examine the role of ownership holdings, this study deploys event study methodology and cross-sectional regression to analyze the abnormal returns and the intergroup dynamics. Event study methodology studies the abnormal return on stock prices on days when fraud, pecuniary actions and regulatory news were reported for 36 banks that are listed on the NSE. Data on news has been collected from Reuters for 110 months. Cross-sectional regression analyses are done to examine whether selected variables on bank characteristics influence the abnormal returns. Exploring the intergroup dynamics between government and privately owned banks helps to accentuate how stakeholders influence investor responses. Findings: Private and government-owned banks display an anomalous return pattern during the events, though to varying degrees and for a longer duration. The sharp downturn observed in private banks in response to pecuniary and regulatory actions related to news can be attributed to the associated risk of these banks. Intergroup dynamics further demonstrate that the effect of such news regarding government-owned bank stocks is more pronounced on privately owned banks compared to the effect of news related to privately owned banks on public banks. Originality/value: The study shows how ownership structure variedly impacts investors' response to news related to fraud, and pecuniary and regulatory actions on Indian banks, which may eventually ask for customized investment approaches for government-owned and privately owned banks. [ABSTRACT FROM AUTHOR]

Purpose: The present study aims to examine the short-term effect of disinvestment oriented IPOs and FPOs on the stock market performance of Indian central public sector enterprises (CPSEs), which divested their equity between 2000 and 2017. Design/methodology/approach: The analysis of stock price reaction is conducted for listing dates only in the case of IPOs and three different dates in the case of FPOs through the event study methodology. The three-event dates related to FPOs are public notification date (PND), issue announcement date (IAD) and price band date (PBD). Findings: Overall empirical analysis indicates that investor sentiments are generally insignificant prior to and posts the PND (first date). The second major date of announcement that is (IAD) is new information in the market and returns are found to be significantly negative across both the periods that is before and after IAD. Thus, the analysis depicts strongly negative investor sentiments in the case of IAD. These results are further substantiated by negatively significant CAR (cumulative abnormal returns) values for both the pre and post-event windows of PBD as well. Research limitations/implications: Empirical analysis concludes that investors do not stand a chance to gain abnormal returns through initiating positions in the stocks of CPSEs during the alternative event dates analyzed. Originality/value: Since the year 2000, disinvestment through public offering has gathered momentum, and this mode accounts for approximately 62% of the collective disinvestment funds generated by the government of India till now. But there have been very limited research studies on the market performance of disinvested CPSEs. This analysis provides new empirical evidence for the market reactions of retail investors in response to the sale of equity by the Indian government in CPSEs. [ABSTRACT FROM AUTHOR]

Purpose: On the basis of gaps in the existing literature on Mergers and Acquisitions in hospitality sector, present study aims to examine the stock behavior (return, volatility & liquidity) of acquirer firms after M&A announcement in the Indian hospitality sector from 1999-2018. Design/Methodology: Market model of event study methodology has been used to examine the change in stock behavior across total sample size of 94 M&A deals (containing 18 mergers and 76 acquisitions) in Indian hospitality sector during sample period. Findings: It is observed that shareholders of acquirer firms in India are able to generate average abnormal return two days before the announcement of M&A event, which indicates that efficient market hypothesis does not hold true in this sector. Whereas, results of stock volatility show that risk for shareholders increase in post-event window as returns are significantly volatile in post-announcement period. Liquidity analysis shows that average abnormal liquidity is significantly high during pre-announcement period. Practical Implications: These findings may contribute to the literature investigating the behavior of stock prices of acquirer's performance in hospitality sector during restructuring events and literature of behavioral finance. Various deal consultants, market regulators, shareholders, research scholars may find these results helpful in understanding the performance of stocks of acquirers in Indian hospitality sector through stock movements around M&A announcements and design their investment strategies accordingly. Originality: The current study emphasized on the market reaction around M&A announcements by capturing stock behavior including stock volatility and liquidity in hospitality sector in India. [ABSTRACT FROM AUTHOR]

Cross-border acquisitions by Indian companies have increased tremendously, especially during the last two decades, and the pharmaceutical industry is one of the top acquiring industries. This study verifies the relationship between cross-border acquisitions and shareholders' wealth in the Indian pharmaceutical sector. For this purpose, the data related to acquisitions were acquired from 2005 to 2019 and the event study methodology was applied along with two parametric tests. The findings of the current research prescribe that cross-border acquisitions have a positive and significant impact on shareholders' wealth. Furthermore, the outcomes also indicate higher positive abnormal returns in the short run when the targets are based in the US and the UK as compared to the positive but insignificant abnormal returns when the targets are based in locations other than the US and the UK. [ABSTRACT FROM AUTHOR]

The Indian Manufacturing sector lags behind in contributing to economic development, as compared to its peer nations and therefore, to boost the sector's contribution to the economy and to transform the economy into a cashless economy, the government of India had announced three major steps, Make in India, Demonetization and GST. In the present study using event study methodology, the immediate impact of the announcements on the stock of the companies from the Indian Manufacturing sector is examined and found that the announcement of the Make in India positively influenced the security returns. In contrast, negative impact on the security prices is witnessed on the announcement of Demonetization, whereas the GST implementation has no impact. [ABSTRACT FROM AUTHOR]