The Impact of NPAs (New Product Announcements) on Stock Prices of Rivals in India: Assessing the Role of Market Expansion Effect

摘要

Scanty research exists providing insightful and perceptive results about the impact of NPAs (New Product Announcements) on the shareholder wealth of the rivals and examining the variation in the same on the basis of industry. However, the impact of NPAs on the valuation of rival firms in the industry, in India, is a critical issue to be studied in detail. Moreover, an important issue of market expansion/market substitution has to be addressed. Thus, in this study, the primary objective is to assess the overall impact of NPAs on the stock prices of rival firms for the aggregate sample in terms of whether they help in creating market expansion or market substitution effect. Further, we analyse the effect of NPAs in different industries, in India, by segregating the sample into major industries.