This study examines the impact of white-collar scams on the Indian stock market using a quantitative research approach, analyzing risk, return, and volatility patterns before and after major financial frauds. It focuses on three significant cases: the Punjab National Bank (PNB) fraud, the Yes Bank crisis, and the Adani Group allegations. Findings indicate that all three scams led to sharp declines in cumulative average abnormal returns (CAAR), with Yes Bank experiencing the most severe impact but also the strongest recovery due to regulatory intervention. Adani’s stocks showed moderate post-scandal recovery, while PNB faced prolonged investor distrust and weaker rebounds. Yes Bank exhibited the highest pre-scam underperformance, whereas Adani experienced the greatest post-scam underperformance, signaling significant market disruption. Volatility analysis suggests that while Adani’s stock shifted from a strong sell position to uncertain fluctuations, Yes Bank and PNB continued to experience selling pressure after their respective scandals. The study highlights the crucial role of regulatory actions in restoring market confidence, as seen in Yes Bank’s recovery, while Adani and PNB faced sustained investor skepticism.
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- A. M. Joseph Kumar (Author), Atla Sai Vardhan (Author), Gouni Sai Anmol (Author), Kola Harsha Vardhan (Author), Maryala Hari Narayana (Author), M. Sunanda (Author), 2024, Impact of White-Collar Scams on the Stock Market Concerning India, Munich, GRIN Verlag, https://www.grin.com/document/1583310
