Impacts of Corporate Announcements on Stock Returns during the Global Pandemic: Evidence from the Indian Stock Market

Asian Journal of Accounting Research, https://doi.org/10.1108/AJAR-06-2021-0097

24 Pages Posted: 27 May 2021 Last revised: 3 Sep 2022

See all articles by Dharen Kumar Pandey

Dharen Kumar Pandey

P.G. Department of Commerce, Magadh University

Vineeta Kumari

Magadh University

Brajesh Kumar Tiwari

Jawaharlal Nehru University

Date Written: April 23, 2021

Abstract

With a sample of ninety events (announcement and ex-date) using the event study methodology with the market model, we provide evidence for the impacts of the corporate announcements on stock returns during the pandemic stress. We find that all the corporate announcements do not impact the stock returns in a similar pattern. While the bonus announcement, ex-bonus and ex-split events led to positive significant abnormal returns on the event date, the rights issue and stock-split announcements failed to influence the stock returns. The findings suggest that before making such announcements, the corporates should wait until the market recovers because even the positively impacting events result in negative market response during pandemic stress. We conduct the first-ever study to examine the impacts of corporate announcements during a pandemic stress period that significantly contributes to the literature.

Keywords: Announcement effects, event study, global pandemic, market model

JEL Classification: G01, G12, G14

Suggested Citation

Pandey, Dharen Kumar and Kumari, Vineeta and Tiwari, Brajesh Kumar, Impacts of Corporate Announcements on Stock Returns during the Global Pandemic: Evidence from the Indian Stock Market (April 23, 2021). Asian Journal of Accounting Research, https://doi.org/10.1108/AJAR-06-2021-0097, Available at SSRN: https://ssrn.com/abstract=3851438 or http://dx.doi.org/10.2139/ssrn.3851438

Dharen Kumar Pandey (Contact Author)

P.G. Department of Commerce, Magadh University ( email )

Bodhgaya, Bihar, 824234
India

Vineeta Kumari

Magadh University ( email )

Bodhgaya, Bihar, 824234
India
824234 (Fax)

Brajesh Kumar Tiwari

Jawaharlal Nehru University ( email )

Vasant Vihar
Jawaharlal Nehru University
New Delhi, DE Delhi 110067
India

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