Stock Market Participation in the Aftermath of an Accounting Scandal
Renuka Sane ()
Working Papers from eSocialSciences
This paper studies the impact on investor behaviour of fraud revelation. The paper ask if investors with direct exposure to stock market fraud (treated investors) are more likely to decrease their participation in the stock market than investors with no direct exposure to fraud (control investors)? Using daily investor account holdings data from the National Stock Depository Limited (NSDL), the largest depository in India, it finds that treated investors cash out almost 10.6 percentage points of their overall portfolio relative to control investors post the crisis. The cashing out is largely restricted to the bad stock. Over the period of a month,there is no difference in the trading behaviour of the treated and control investors. These results are contrary to those found in mature economies.
Keywords: stcok market participation; accounting scandal; fraud revelation; direct exposure; stock market; direct exposure; National Stock Depository Limited (NSDL); depository; investory cash; investors. (search for similar items in EconPapers)
Note: Institutional Papers
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://www.esocialsciences.org/Download/repecDownl ... AId=11893&fref=repec
Working Paper: Stock market participation in the aftermath of an accounting scandal (2017)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ess:wpaper:id:11893
Access Statistics for this paper
More papers in Working Papers from eSocialSciences
Bibliographic data for series maintained by Padma Prakash ().