A Study on Perception of Informed Investors on Corporate Announcements

Abstract

This study aims to find the perception of informed investors about corporate announcements of listed stocks in Indian market. To understand what informed investors perceive about the corporate events announcements like Bonus, stock split and right issue, three dimensions to perception were developed viz., awareness about various corporate actions announcements, perception towards wealth effect of bonus, stock split, and right issue announcement, and with final sample of 211 informed investors analysis were made using correlation, anova, regression. This study has empirically analyzed the perceptions of the respondents, based on social, economic, and demographic characteristics, on awareness about various corporate actions announcements, perception towards wealth effect of bonus, stock split, and right issue announcement, and perception towards risk association of wealth effect of corporate action announcement. Further, this chapter has also analyzed inter-relationship among core variables namely awareness about various corporate actions announcements, perception towards wealth effect of bonus, stock split, and right issue announcement, and perception towards risk association of wealth effect of corporate action announcement. Based on the results it can be concluded that perception towards wealth effect of bonus, stock split, perception towards risk association of wealth effect of corporate action announcement have significant impact on awareness about corporate actions announcements.

Keywords: Investors perception, corporate actions, bonus, stock split and right issue

JEL category: G23, G21