{"title":"Effects of Budget Announcement on Stock Prices in the Indian Context","authors":"T. Manjunatha, Zahid Hassan Kharuri","doi":"10.52711/2321-5763.2023.00010","DOIUrl":null,"url":null,"abstract":"The stock prices are quick to respond to announcements of union budgets for structural reforms. The paper tests the effects of union budget announcement on stock prices by applying event study methodology. The reactions are tested using market model, Abnormal Returns (AR), Average Abnormal Returns (AAR) and Cumulative Average Abnormal Returns (CAAR) for 15 days prior and 15 days after the event date. Result show that CAARs are significant for most of the days in the event window. The findings support the prediction that budget announcement contains information value and therefore traders can earn abnormal gain on budget announcements in Indian capital market.","PeriodicalId":41247,"journal":{"name":"Asian Journal of Management Cases","volume":"195 1","pages":""},"PeriodicalIF":0.1000,"publicationDate":"2023-03-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Asian Journal of Management Cases","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.52711/2321-5763.2023.00010","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q4","JCRName":"MANAGEMENT","Score":null,"Total":0}
引用次数: 0
Abstract
The stock prices are quick to respond to announcements of union budgets for structural reforms. The paper tests the effects of union budget announcement on stock prices by applying event study methodology. The reactions are tested using market model, Abnormal Returns (AR), Average Abnormal Returns (AAR) and Cumulative Average Abnormal Returns (CAAR) for 15 days prior and 15 days after the event date. Result show that CAARs are significant for most of the days in the event window. The findings support the prediction that budget announcement contains information value and therefore traders can earn abnormal gain on budget announcements in Indian capital market.
期刊介绍：
Asian Journal of Management Cases is a peer-reviewed journal that aims at providing high-quality teaching material to academics, consultants, and management developers, through cases on management practices in the socioeconomic context of developing Asian countries. The journal covers all administrative disciplines including accounting and finance, business ethics, production and operations management, entrepreneurship, human resource management, management information systems, marketing, organizational behaviour, strategic management, and managerial economics. Each issue of Asian Journal of Management Cases comprises four to five original case studies. Teaching cases should be accompanied with a Teaching Note (TN). Even though the TN will not be published, it is necessary for the review process and can be obtained by contacting the authors directly. Please refer to the online submission guidelines for details on writing a teaching note. AJMC does not publish pure research or applied research based on field studies (not case studies). The journal is published in March and September every year with thematically focused issues occasionally.
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