Impact of Hindenburg Research Report on the Stock Prices of Adani Group Companies: An Event Study

Abstract

The present study investigates the impact of the Hindenburg Research report on the Adani Group’s stock prices. An event study analysis was conducted over a 21-daywindow period, including 10 days prior to, 10 days after and the day of the event. The results showed that the majority of average abnormal returns and cumulative average abnormal returns were statistically significant during the observation period, particularly in the post-event period. This indicates that the Hindenburg Research report had a significant impact on the stock prices of Adani Group companies. The findings suggest that the Indian stock market may not be efficient in its semi-strong form. Nonetheless, it was also noticed that the stock prices did not immediately respond to the information in the report. This study has significance for investors, firms, policymakers, and regulators as they can utilize it to evaluate such announcement effect on stock prices in the Indian stock market.