Impact of Automobile Regulations on Shareholders’ Wealth: Indian Empirical Evidence

Metamorphosis: A Journal of Management Research, 2018, 17(1), 28-40

Posted: 30 Sep 2018

See all articles by Manoj Anand

Manoj Anand

Management Development Institute

Jagandeep Singh

UIAMS, Panjab University, Chandigarh

Date Written: 2018

Abstract

The world faces the arduous task of reining in pollution. The pursuit of development agenda fuels more pollution. The economic reforms of 1991 put the Indian automobile on a higher growth trajectory. The resultant increase in vehicular pollution drew the attention of the court of law and regulators. The present study captures the impact of various policy reforms initiated to achieve sustainable development in the automobile sector during the period 1999–2017. Lack of industry readiness led to negative cumulative abnormal returns on introduction of emission standards I, II, and III in 1999, 2005, and 2010, respectively. The automobile industry registered a significant negative CAR of 1.49 per cent in the (0, 0) window at the time of introduction of emission standards IV in 2017 and erosion of Rs 88,390 million of shareholders’ wealth.

Keywords: Economic Regulations, Indian Automobile Industry, Bharat Stage Emission Norms, Event Study, Shareholders’ Wealth

Suggested Citation

Anand, Manoj and Singh, Jagandeep, Impact of Automobile Regulations on Shareholders’ Wealth: Indian Empirical Evidence (2018). Metamorphosis: A Journal of Management Research, 2018, 17(1), 28-40, Available at SSRN: https://ssrn.com/abstract=3178732

Manoj Anand (Contact Author)

Management Development Institute ( email )

Gurugram, Haryana 122001
India

Jagandeep Singh

UIAMS, Panjab University, Chandigarh ( email )

No Address Available
United States

Here is the Coronavirus
related research on SSRN

Paper statistics

Abstract Views
144
PlumX Metrics