Journal Press India^®

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The Hindenburg Research report was issued on January 24, 2023, and included a negative assessment of Adani group companies, leading to a drop in their stock prices. As a result, the report substantially affected LIC India’s stock prices because LIC India had lent Rs 36474.78 crore to the Adani group. This research paper examined the impact of Hindenburg Research’s report on the stock prices of Life Insurance Corporation of India (LIC India) by utilizing an event study approach. The analysis covers a 31-day event window period and a 120-day estimation period. The study concluded that the Hindenburg Research report did not significantly affect LIC India’s stock prices, suggesting that the market quickly assimilated the information. Moreover, this implies that investors cannot earn abnormal profits in this efficient market.

Keywords

Efficient Market Hypothesis, Hindenburg, Market Model, Abnormal Returns. Sub-Event Window

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