Stock market trading in the aftermath of an accounting scandal

Renuka Sane

Emerging Markets Review, 2019, vol. 40, issue C, -

Abstract: In this paper, we study the impact of accounting fraud revelation on trading behaviour of investors. Using daily investor account holdings data from the National Stock Depository Limited (NSDL), the largest depository in India, we find that investors directly exposed to accounting fraud cash out almost 10.7 percentage points of their overall portfolio relative to investors not directly exposed. The cashing out is largely restricted to the bad stock. Over the period of a month, however, there is no difference in the trading behaviour of the treated and control investors.

Keywords: Accounting fraud; Stock market trading; Individual investors; India (search for similar items in EconPapers)
JEL-codes: D1 G1 G3 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Related works:
Working Paper: Stock Market Trading in the Aftermath of an Accounting Scandal (2018)
Working Paper: Stock Market Trading in the Aftermath of an Accounting Scandal (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ememar:v:40:y:2019:i:c:1

DOI: 10.1016/j.ememar.2019.100627

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