Joint research study reveal banking fraud hits PSU bank stocks harder

Chennai, Oct 22 (UNI) A joint study by Nagaland University and Pandit Deendayal Upadhyaya Adarsha Mahavidyalaya Tulungia researchers revealed that major banking fraud announcements leads to major negative stock market reactions and this trend stood more pronounced in public sector banks, which experienced sharper losses than their private sector counterparts. The research examined four major Indian banking fraud cases, revealing how ownership structure, institutional credibility and bank size influence stock market reactions to financial misconduct. The findings highlighted how ownership structure, institutional credibility and the size and maturity of a bank had a major influence on investor responses when financial…