Paper Title
An Event Study on the Abnormal Returns of American Depository Receipts (ADRs) of Indian Companies and Underlying Equities on the Day of the Announcement of 2019 Election Results
Abstract
Previous research work showed that Parliamentary election results affect the performance of the stock market (Ying, Rasiah, & Ming, 2016). In a recent paper, Nandy &Sussan (2020) reported that the news of a Parliamentary elections in India in 2014 affected the cumulative average abnormal returns of ADRs and underlying equities traded in India in slightly different ways. However, no research exists on the effect of the announcement of the 2019 election results on the abnormal returns of ADRs of Indian companies and of the underlying equities on the day of this announcement. Our results show that the null hypothesis of abnormal returns of Indian ADRs and of underlying equities equal to zero cannot be rejected on the day of announcement of the election results. This shows the efficiency in dissemination of the news of the results of Parliamentary election in the Indian stock market.
Keywords - 2019 India Elections, Event Study, American Depository Receipts, Abnormal Returns, Indian Equities.