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A Perspective on Industry Classification and Market Reaction to Corporate News: Evidence from India

A Perspective on Industry Classification and Market Reaction to Corporate News: Evidence from India AbstractIn this paper, we provide a cross-industry perspective on the market reaction to different corporate news in the context of Indian stock market. We have studied the price and volume movements associated with eight broadly defined news categories namely Analyst Calls, Earnings, Earnings Forecasts, Finance, Legal and Regulatory, Management, Operations and Restructuring. We have employed the standard event study methodology on a sample of stocks listed on the National Stock Exchange of India for the purpose of our study. We observe that the market reaction to firm specific corporate news varies according to the type of news across different industry groups. We also observe that the sentiment of the news is a critical factor which influences the market reaction to such news flow across industry groups. We also provide a cross-industry perspective on the relative importance of different corporate news categories after taking into account the sentiment of the news in the context of Indian stock market. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Scientific Annals of Economics and Business de Gruyter

A Perspective on Industry Classification and Market Reaction to Corporate News: Evidence from India

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References (39)

Publisher
de Gruyter
Copyright
© 2018 Nayanjyoti Bhattacharjee et al., published by De Gruyter Open
eISSN
2501-3165
DOI
10.2478/saeb-2018-0001
Publisher site
See Article on Publisher Site

Abstract

AbstractIn this paper, we provide a cross-industry perspective on the market reaction to different corporate news in the context of Indian stock market. We have studied the price and volume movements associated with eight broadly defined news categories namely Analyst Calls, Earnings, Earnings Forecasts, Finance, Legal and Regulatory, Management, Operations and Restructuring. We have employed the standard event study methodology on a sample of stocks listed on the National Stock Exchange of India for the purpose of our study. We observe that the market reaction to firm specific corporate news varies according to the type of news across different industry groups. We also observe that the sentiment of the news is a critical factor which influences the market reaction to such news flow across industry groups. We also provide a cross-industry perspective on the relative importance of different corporate news categories after taking into account the sentiment of the news in the context of Indian stock market.

Journal

Scientific Annals of Economics and Businessde Gruyter

Published: Mar 1, 2018

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