Market Reaction around the Buyback Announcements: An Empirical Analysis of Informational Efficiency of Indian Stock Market
Journal Title: International Journal of Management, IT and Engineering - Year 2012, Vol 2, Issue 7
Abstract
In this paper an important financial event buyback of shares has been analyzed with an aim to evaluate the impact of its announcement on stocks listed on National Stock Exchange S&P CNX 500 (index). We have used the event study methodology to see the impact of the announcement. The present study could not find evidence of abnormal returns associated with the announcement of buy-back of shares in the Indian capital market. In this paper impact of mode of buy-back has also been analyzed. No significant impact of mode of buy-back has been seen from analysis. Market reacted positively but insignificantly in case of buy-back through open offer. Overall findings support the stock market efficiency in semi-strong form. The stock market efficiency is not only concerned with the direction of change in the stock prices rather it is concerned with magnitude of change.
Authors and Affiliations
Dr. Harsh Purohit, Dr. Vibha Dua Satija and Haritika Sabharwal Chhatwal
Keywords
Related Articles
- EP ID EP18427
- DOI -
- Views 252
- Downloads 9
Software Reliability Measurment Based On API and Information Theoretic Metrics
Measuring the quality of software now days is one of the most important tasks. In this research paper we are enhancing the software quality measurement using API and theoretic information metrics. Along with the new se...
slugArtificial Intelligence Applied to digital Email for forensic Application
The number of computer security incidents is growing exponentially and society’s collective ability to respond to this crisis is constrained by the lack of trained professionals. The increased use of the Internet and c...
Implementation of Failure Mode and Effect Analysis: A Literature Review
FMEA was formally introduced in the late 1940s for military usage by the US Armed Forces. Later, it was used for aerospace/rocket development to avoid errors in small sample sizes of costly rocket technology. FMEA enab...
slugSELECTION OF MIXED SAMPLING PLAN WITH CSP- 3(k=i) PLAN AS ATTRIBUTE PLAN INDEXED THROUGH MAPD AND MAAOQ
In this paper a procedure for the construction and selection of the independent mixed sampling plan using MAPD and MAAOQ as quality standards with Continuous Sampling plan of the type CSP-3(k=i) as attribute plan is pr...
Brand Preference of Ayurvedic Medicine for Various Diseases with Reference to Pune City
About 80 percent of world population depends on natural products for their health care instead of modern medicines primarily because of side effects and high cost of modern medicine. Presently the demand for traditiona...