Impact of Automobile Regulations on Shareholders’ Wealth: Indian Empirical Evidence

Manoj Anand and Jagandeep Singh

Metamorphosis: A Journal of Management Research, 2018, vol. 17, issue 1, 28-40

Abstract: The world faces the arduous task of reining in pollution. The pursuit of development agenda fuels more pollution. The economic reforms of 1991 put the Indian automobile on a higher growth trajectory. The resultant increase in vehicular pollution drew the attention of the court of law and regulators. The present study captures the impact of various policy reforms initiated to achieve sustainable development in the automobile sector during the period 1999–2017. Lack of industry readiness led to negative cumulative abnormal returns on introduction of emission standards I, II, and III in 1999, 2005, and 2010, respectively. The automobile industry registered a significant negative CAR of 1.49 per cent in the (0, 0) window at the time of introduction of emission standards IV in 2017 and erosion of ₹88,390 million of shareholders’ wealth.

Keywords: Economic regulations; Indian automobile industry; Bharat Stage emission norms; event study; shareholders’ wealth (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/0972622518770833 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:metjou:v:17:y:2018:i:1:p:28-40

DOI: 10.1177/0972622518770833

Access Statistics for this article

More articles in Metamorphosis: A Journal of Management Research
Bibliographic data for series maintained by SAGE Publications ().