*Professor & Head, S.K. School of Business Management (SKSBM), Hemchandracharya North Gujarat University, Patan (Gujarat)
**Ph.D Research Scholar, VJKM Institute of Management and Computer Studies, Affiliated to Gujarat Technological University, Vadu (Gujarat)
Online published on 16 April, 2014.
The economic development of any country depends upon the existence of a well organized financial system. An efficient functioning of the financial system facilitates free flow of funds to more productive activities and thus promotes investment. The financial system may be viewed as a multistoried structure consisting mainly of financial institutions and financial markets. Indian stock markets have undergone transformation rather dramatically in the last decade. The number and variety of players have increased. The growth in the foreign institutional investors, mutual funds and the privatization of insurance sector, have facilitated the induction of more institutional players in the markets. The present study aims to examine behaviour of indian stock market with respect to corporate event announcement. Such examination is made in the context of dividend announcement witnessed by 14 constituent stocks of S&P BSE Bankex during the period from January 2001 to December 2010 by application of the market model of the event study methodology. AARs are not statistically significant on event day and before and after the announcement except few days
Stock Price behavior, Corporate Event Announcement, Announcement Period, Abnormal Returns, Efficient Market
