Do dividend announcements override the pandemic impacts? Evidence from the BSE 500 constituent firms

Pandey, Dharen Kumar; Kumari, Vineeta

doi:10.1016/j.apmrv.2021.09.002

Cited by 22 publications

(18 citation statements)

References 73 publications

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“…Many studies have explored the pandemic effects on the global market (Ali et al, 2020;Baker et al, 2020;Belaid et al, 2021;Heyden & Heyden, 2021;Khatatbeh et al, 2020;Pandey & Kumari, 2021a, 2021b, on developed markets (Alhenawi et al, 2022;Goodell & Huynh, 2020;Heyden & Heyden, 2021;Mazur et al, 2021), on emerging economies Anh & Gan, 2020;Harjoto & Rossi, 2021;Pandey et al, 2021;Pandey & Kumari, 2021b, 2021cRakshit & Neog, 2021;Topcu & Gulal, 2020), and, on the forex markets (Aslam et al, 2020;Bazán-Palomino & Winkelried, 2021). These studies confirm the significant impact of the pandemic.…”

Section: Literature Reviewmentioning

confidence: 79%

Impact of the COVID-19 pandemic on banking and financial sector stock returns

Hanif

Hassan

Henchiri

et al. 2022

IJABF

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Using the Indian banking and financial services stocks, this study set out to examine the impacts of the global pandemic and government measures on the stock returns around four pandemic-related events. This study employs the event study methodology with the market model estimation for a 210-day estimation window [-214,-5] and a 15-day event window [-4,+10]. The reaction was mild to the announcement of 'Health Emergency of Global Concern', but as soon as the coronavirus outbreak was declared a 'global pandemic', the market reacted significantly. Further, due to the expected economic stimulus, the Reserve Bank of India's financial measures resulted in a positive response from the market. The public and private sector banks are almost non-reactive to the first event. The findings deny that with the available prices, during an event, abnormal returns are impossible. The analysis results make it easier for them to formulate sustainable policies and constitute a high-yield moderate-risk portfolio during such emergencies.

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Section: Literature Reviewmentioning

confidence: 79%

Impact of the COVID-19 pandemic on banking and financial sector stock returns

Hanif

Hassan

Henchiri

et al. 2022

IJABF

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“…Several recent studies have utilized event study methodology to investigate the effects of various events on different financial markets (Abbassi et al, 2023;Boubaker et al, 2015;Chortane and Pandey, 2022;Goodell and Huynh, 2020;Goyal and Soni, 2023;Jaiswal and Dubey, 2022;Kumari et al, 2023a, b;Pandey et al, 2023a;Pandey and Kumari, 2021;Rai and Kumari, 2022). Following it, the present study employed the most widely used market model of event study methodology (Buigut and Masinde, 2022;Kumari et al, 2023a, b;Pandey et al, 2023c;Pandey and Kumari, 2022) to explore the impact of the event on the Indian banking and financial services sector stocks. The timeline of the event study consists of an estimation window of 200 trading days from tÀ207 to tÀ8 and a 15-day event window (À7, þ7) (Pandey et al, 2023a) 1.…”

Section: Methodsmentioning

confidence: 99%

The impact of Credit Suisse takeover on Indian banking and financial services sector stocks: an event study analysis

Goyal,

Soni

2023

JES

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PurposeThe present study aims to comprehensively examine the impact of the Union Bank of Switzerland (UBS) takeover of Credit Suisse on the banking and financial services sector in the Indian stock market. To fully comprehend the impact of the event, the study separately investigates the response of private sector banks, public sector banks, overall banking companies and financial services companies to the takeover of the second-largest financial institution in Switzerland.Design/methodology/approachThe study employs event study methodology, using the market model, to analyze the event's impact on Indian banking and financial services sector stocks. The data consists of daily closing prices of companies included in the Nifty Private Bank Index, Nifty PSU Bank Index, Nifty Bank Index and Nifty Financial Services Index from the National Stock Exchange (NSE). Furthermore, cross-sectional regression analysis has been conducted to explore the factors that drive abnormal returns.FindingsThe empirical findings of the study suggest the event had a heterogeneous impact on the stock prices of Indian banks and financial services companies. While public sector banks experienced a significant negative impact on select days within the event window, the overall Indian banking sector and financial services companies also witnessed notable declines. In contrast, Indian private sector banks were relatively resilient, exhibiting minimal effects. However, the cumulative effect is found to be insignificant for all four categories across different event windows. The study also observed that the cumulative abnormal returns (CARs) were significantly influenced by certain variables during different event windows.Originality/valueTo the best of the authors' knowledge, the present study is the earliest attempt that investigates the impact of the UBS takeover of Credit Suisse on the Indian banking and financial services sector using event study methodology and cross-sectional regression model.

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“…We use a 15-day event window ranging from t-7 to t+7, where 't0' is the event date. Smaller event windows are suggested and used in (Gong, 2007;Gong et al, 2006;Mackinlay, 1997;Pandey & Kumari, 2021c). We also use different shorter event windows for analyzing the cumulative impact of the event.…”

Section: Methodsmentioning

confidence: 99%

Impacts of bank mergers on shareholder's wealth

Kumar¹,

Yadav

Mallik³

et al. 2022

IJABF

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We examine the effect of the news about merger of six banks into four major banks, employing the standard event study method with the market model on a sample of four bidders and six target banks. We find significant impact of merger announcement on the bidder and target banks. While the bidder banks are negatively impacted, the target banks experience positive impacts on the event day and day after, followed by negative results later on. No previous study is found to have addressed this question on how the merger announcements impact the bidder and target bank's stock returns in India.

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Do dividend announcements override the pandemic impacts? Evidence from the BSE 500 constituent firms

Cited by 22 publications

References 73 publications

Impact of the COVID-19 pandemic on banking and financial sector stock returns

Impact of the COVID-19 pandemic on banking and financial sector stock returns

The impact of Credit Suisse takeover on Indian banking and financial services sector stocks: an event study analysis

Impacts of bank mergers on shareholder's wealth

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