(3.236.175.108)
Users online: 2025    [ij] [ij] [ij] 
Email id
 

Asian Journal of Management
Year : 2018, Volume : 9, Issue : 3
First page : ( 1055) Last page : ( 1058)
Print ISSN : 0976-495X. Online ISSN : 2321-5763.
Article DOI : 10.5958/2321-5763.2018.00165.8

An Empirical Study on Effect of Demonetization on NSE Bank Nifty Stocks using Event Study Methodology

Kumar S. S. Pavan*

Assistant Professor, Department of Management Studies, Ballari Institute of Technology and Management, Ballari-583104, Karnataka, India

*Corresponding Author E-mail:

Online published on 30 January, 2019.

Abstract

This study investigates stock market effect to Demonetization on Banking stocks to find out if the Indian stock market is semi-strong efficient or not using the standard event study methodology. The methodology used is event study under the market model. Samples of 12 stocks are considered from banking sectors. The results indicate that there are significant positive abnormal returns prior to Demonetization announcements. On the day of Demonetization announcement for the only Bank of Baroda and Canara Bank, On the day of Event 0 the negative returns as observed for, IndusInd Bank (−0.8), Axis Bank (−1%), Yes bank (−0.8), HDFC Bank (−0.2%), ICICI Bank (−0.8%), The significant positive returns on the event are found for PNB (8.7%) IDFC Bank (1.3%), SBIN (4%) Canara Bank (2.8%), Kotak bank (1.2) %, Bank of Baroda (2.3%) Federal bank (0.2%). Hence the significant abnormal returns for all the stocks of Banking are not uniform across the Banking sector.

Top

Keywords

Stock Market, Demonetization, Abnormal returns, Banking Sector.

Top

  
║ Site map ║ Privacy Policy ║ Copyright ║ Terms & Conditions ║ Page Rank Tool
478,068,634 visitor(s) since 30th May, 2005.
All rights reserved. Site designed and maintained by DIVA ENTERPRISES PVT. LTD..
Note: Please use Internet Explorer (6.0 or above). Some functionalities may not work in other browsers.