A PANEL DATA ANALYSIS ON THE IMPACT OF HINDENBURG’S REPORT ON ADANI’S STOCK PRICE

Abstract

In the research paper we have made an analysis of the impact of Hindenburg’s report on the Adani Group’s stock prices. We try measuring how much this report affected the Adani companies' stock prices both before and after the report.

We thus collected the daily stock price data for several companies of Adani covering three months before the report and three months afterward. Using statistical models controlling for differences between the companies, we analyse the changes in the stock price over this period. We find that there is a consistent large negative impact on the stock prices of Adani companies from the report, though the magnitude of the impact differs for different companies.

In general, important corporate news, such as that related to emerging markets like India, witnesses the impact of such news on markets. Thus, this study would prove very useful for investors, regulators, and all those in corporate governance because, above all, it makes a strong case for greater transparency and strict regulatory compliance to keep the markets stable and investors confident. The future study may extend our present work by considering longer spans of time or other financial aspects such as stock volatility and trading activity.