Corporate result announcements' and stock returns: An event study of NIFTY 50 companies
Corporate results announcements provide information about the company's financial performance to the general public, investors, analysts, and shareholders. The announcements provide details on the company's revenue, expenses, profitability, and overall financial situation. When a company discloses financial data, including sales, profitability, and other crucial performance indicators, investors and market observers examine that data to evaluate the firm's financial situation and future prospects. Corporate results announcements supposed to have a big impact on stock returns. In the current study, event study methodology is being used to analyse the effect of corporate result releases on stock returns. The results indicate that, except from the fifth day in the post-event window, average abnormal returns are not significant for the pre- and post-event days. However, CAAR values tend to increase during the post-event window, indicating that corporate result announcements have a substantial impact on CAAR values during this time.