Review of Professional Management- A Journal of New Delhi Institute of Management

Inderpal Singh ¹, Kanika Khera ²

Affiliations
1 Delhi Institute of Advanced Studies, Indraprastha University, Delhi, IN
2 Acharya Narendra Dev College, University of Delhi, Delhi, IN

Abstract

The stock price movement is an area of research that has attracted attention of various academicians and scholars. Perhaps no other area of finance has been subject to so much empirical investigation during the last four decades as the behavior of stock prices. This paper attempts to contribute positively to the understanding of the behavior of Indian share prices in relation to various corporate announcements. Dividend announcements usually are considered as positive signals to shareholders and also is expected a positive impact on the share price. Yet, different announcements are expected to impact share prices differently. A standard methodology to study the influence of impact factors on the stock price movement is adopted in this paper to examine the price movements of 10 companies (listed on Bombay Stock Exchange) surrounding 30 days of announcement periods each for four corporate announcements viz. Stock split, Right Issue, Bonus Issue and Dividend.

Keywords

Corporate Announcements, Bonus Issue, Corporate Payout, Share Prices, CAAR.

Full Text

   

Inderpal Singh ¹

Affiliations
1 Delhi Institute of Advanced Studies Indraprastha University, New Delhi, IN

Abstract

It is a fact that human resources are no less important than other resources. The recognition, however, of the importance of people in organizations as productive resources by the accountants is a recent origin. In the management terminology, this is termed as Human Resource Accounting (HRA). In the simplest form, HRA involves the identification of the costs of recruitment, training and maintenance of an entity's human assets. According to American Accounting Association, "HRA is a process of identifying and measuring data about human resources and communicating this information to interested parties." Characteristics like personality, self-control, devotion, quality, skills, talents, loyalty and initiatives differentiate the Human Resource from the physical resources. In a nutshell, HRA involves (a) measurement and valuation of human resources and (b) communicating the information so generated for internal and external decision-makers. In 1995-96, companies like Infosys went out to value its human resource which was Rs. 184 crores, much more than the value of its physical assets of Rs. 84 crores. The valuation of human resources has received widespread recognition. In course of time, various accounting models have been developed to evaluate human resources of an organization. Lev and Schwartz Model is widely used by many Indian firms. To make valuation of human resource objective and comparable, there must be a universally acceptable method of valuation.

Full Text