Aug 2026· Review of Financial Economics· Vol 44· 0 citations· 26 references
Abstract
We examine the short‐term stock market reaction to the implementation of India's four consolidated Labour Codes on November 21, 2025. Employing the event study method on 1871 National Stock Exchange‐listed firms, we find a significant negative aggregate market reaction, with a cumulative average abnormal return of approximately −3.54% until the day after the implementation date. We find heterogeneous impact, disproportionately affecting labor‐intensive sectors, while firm‐level operational efficiency amplifies negative postannouncement returns. Results align with contracting cost theory, suggesting investors initially viewed the reforms as a substantial cost shock outweighing potential long‐term efficiency gains. The findings offer critical insights for policymakers and investors.
The study investigated whether market-oriented reforms in Uzbekistan were reflected in the behaviour of stock prices across economic sectors. The author used firm-level data on 85 companies listed on the Uzbek Stock Exchange for 2024, grouped them by industry and classified annual price movements as rises, falls or no...
We document a broad decline in return on assets (
ROA
) among U.S. public firms from 1963 to 2020, including firms with high growth opportunities, R&D intensity and market power. Many firms earn realized returns below estimated costs of capital and valuation‐implied benchmarks. Declining asset utilization and Ric...
James S. Ang, Ying-Mei Cheng, Zhi-Qian Jiang· Accounting & Finance· 0 citations
This study examines how the COVID-19 crisis reshaped the determinants of capital structure among Portuguese industrial small and medium-sized enterprises (SMEs). Using firm-level and macroeconomic data from 7,006 SMEs over 2016–2023, we estimated a fixed-effects panel model with robust standard errors. Before the pande...
Bruna Ferreira, J. Mota, Luís Pacheco· Mercados y Negocios· 0 citations
We study the effects of green finance reform on firms’ long-term investment using data from a Chinese green finance pilot policy introduced in 2017 and panel data on listed firms covering an eleven-year period. We find that the policy significantly increases long-term investment, with the effect accounting for approxim...
This study examines the 2013 South Africa–China Strategic Trade Agreement (STA) and its implications on firms using a decade of microdata in South Africa. Exploiting the policy's quasi-exogenous nature, we show that the STA is associated with a reorientation toward Chinese capital goods, increasing firm-level capital-l...
Megan Shongwe, A. Gandy, Aimable Nsabimana et al.· WIDER Working Paper· 0 citations
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