IDEAS home Printed from https://ideas.repec.org/a/eut/journl/v23y2019i4p839.html
   My bibliography  Save this article

A Perspective on Promoter Ownership and Market Reaction to Corporate News: Evidence from India

Author

Listed:
  • Nayanjyoti Bhattacharjee

    (Department of Management Studies, Bodoland University, Kokrajhar, Assam, India.)

  • Anupam De

    (Department of Management Studies, National Institute of Technology, Durgapur, West Bengal, India.)

Abstract

Corporate governance structures in the wake of observed differences in firm ownership structures in developed markets and emerging market economies are distinct. In this paper, we examine the effect of an ownership structure of firms on the market reaction to corporate news flows in the context of emerging market economies like India. We observe the price and volume movements associated with eight different categories of corporate news flow (Analyst Calls, Earnings, Earnings forecasts, Finance, Legal and Regulatory, Management, Operations and Restructuring) for a sample of firms listed on the National Stock Exchange of India after taking into consideration the extent of promoter ownership in the firm using the standard event study methodology. The magnitude of the price and volume reaction reveals that the market reaction to firm specific corporate news differs according to the type and sentiment of the news flow and the level of promoter ownership in the firm. We also provide a perspective on the relative importance of corporate news flow to the investors for firms with a distinct ownership structure.

Suggested Citation

  • Nayanjyoti Bhattacharjee & Anupam De, 2019. "A Perspective on Promoter Ownership and Market Reaction to Corporate News: Evidence from India," Iranian Economic Review (IER), Faculty of Economics,University of Tehran.Tehran,Iran, vol. 23(4), pages 839-859, Autumn.
    • Handle: RePEc:eut:journl:v:23:y:2019:i:4:p:839
    as

    Download full text from publisher

    File URL: ftp://80.66.179.253/eut/journl/20194-3.pdf
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eut:journl:v:23:y:2019:i:4:p:839. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: [z.rahimalipour] (email available below). General contact details of provider: https://edirc.repec.org/data/fecutir.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.