Asian Journal of Multidimensional Research (AJMR)
  • Year: 2019
  • Volume: 8
  • Issue: 12

A study on efficient market hypothesis in it consulting and software sector in Indian stock market

1Professor, Jansons School of Business, Coimbatore, Tamil Nadu, India, Email id: c.nateson@jsb.ac.in

2Assistant Professor, Jansons School of Business, Coimbatore, Tamil Nadu, India

Abstract

The corporate announcements have significant effect on the shareholder's decision and hence it is often reflected in the prices at which the shares of the companies are traded. The objective of this paper is to study the informational efficiency of the shares of IT Consulting and Software Sector listed in Indian Stock Market. The event considered is the bonus issue announcement made by the selected companies belonging to IT Consulting and Software Sector during September, 2001 to August 2019. The empirical analysis has indicated that the bonus issue announcements had less impact on the EMH assumption of the market with respect to IT Consulting and Software Sector. When CAAR is taken as the excess return expected, there is significant impact on the share prices and returns in the selected firms.

Keywords

Corporate announcements, Informational Efficiency, Efficient Market Hypothesis (EMH), Average Abnormal Return (AAR), Cumulative Average Abnormal Return (CAAR)