Impact of The Hindenburg Research Report on Adani Group Stocks: An Event Study Approach

DOI

10.2991/978-94-6463-766-3_16How to use a DOI?

Keywords

Hindenburg Research Report; Event Study; Abnormal Return; Average Abnormal Return and Cumulative Abnormal Return

Abstract

In January 2023, Hindenburg Research published a report accusing the Adani Group of financial irregularities and governance issues. These revelations triggered a global outcry and led to notable disruptions in the financial markets. The present study explores how the stock prices of ten publicly listed Adani Group companies responded to the report, aiming to understand the effect of such investigative disclosures on market behavior.

Applying the event study methodology, the research analyzes stock price behavior across three phases: the period leading up to the report (pre-event), the immediate aftermath (event), and the following recovery stage (post-event). Abnormal Returns (AR) and Cumulative Abnormal Returns (CAR) were calculated to determine deviations from normal market expectations. Data from the NSE and BSE formed the basis of the analysis, with statistical techniques employed to evaluate the significance of the patterns observed.

The results indicate a marked decline in stock prices immediately following the report’s release, coupled with increased volatility. Though the losses were severe in certain instances—reflecting strong investor apprehension—there was evidence of modest recovery shortly thereafter, likely influenced by the Adani Group’s strategic interventions and evolving market perceptions.

This study highlights the profound impact that allegations of corporate misconduct can have on stock market performance, stressing the importance of corporate transparency and sound governance practices. The insights presented here are particularly relevant for investors, regulators, and corporate leaders in managing similar financial shocks.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Neha Devchand Nikule
AU  - Ritish Kumar Shaw
PY  - 2025
DA  - 2025/06/24
TI  - Impact of The Hindenburg Research Report on Adani Group Stocks: An Event Study Approach
BT  - Proceedings of the IBA IEA Conference on Economics and Public Policy (Ecofluence 2024)
PB  - Atlantis Press
SP  - 323
EP  - 340
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-766-3_16
DO  - 10.2991/978-94-6463-766-3_16
ID  - Nikule2025
ER  -