SHARE PRICE BEHAVIOUR AROUND BUY BACK AND DIVIDEND

ANNOUNCEMENTS IN INDIA
Prepared by:
Dr. P. Thirumalvalavan Reader, Bharathiar School of Management and Entrepreneur
Development, Bharathiar University
K. Sunitha Research Scholar, Bharathiar School of Management and Entrepreneur
Development, Bharathiar University
ABSTRACT
Over the past few years, many firms have announced significant number of stock
repurchases. The overwhelming reason given for stock repurchase announcements has been
to reverse a trend of declining stock prices. Share buy backs have become an important area
in financial research considering its strong implications for corporate policy. Indian
companies have been permitted to buy back shares after the provisions of the Companies Act
1956 were suitably amended in 1999. Several studies have provided conclusive proof of
signaling effect of stock repurchase and dividends announcements. This paper investigates
and tests the following: 1) Signaling effect of a share buy - back and dividend announcements
2) The market reaction and share price behaviour to announcements of stock repurchases
and dividends 3) Abnormal Returns across various repurchase levels. The analysis uses data
of 22 firms in the BSE 500 index, which has announced stock repurchase option and
dividends during the period 2002 2004. An examination of share price behaviour around
stock repurchases and dividends prove the signaling effect of these announcements. Stock
repurchase programs recorded a high cumulative abnormal return of 3.2 percent within two
days of the event whereas dividend announcement recorded a high cumulative abnormal
return of 2.1 percent within one day of the event. There is no significant difference in
abnormal returns as result of various repurchase levels. These results imply the strong
signaling power of stock repurchases announcements and that the market reacts more
favourably to repurchases compared to dividend announcements.
1. INTRODUCTION
The following two empirical facts are well established in the corporate finance literature on payout policy.
First, firms distribute cash to their shareholders using both alternative mechanisms: cash dividends and stock
repurchases; despite that dividend are taxed. This empirical evidence has been referred as the dividend
puzzle
1
.Open market stock repurchases and dividend initiation announcements are associated with positive
abnormal stock return. The market reaction to both payout methods is of similar magnitude
2
. Stock repurchase
refers to the reversal of equity offerings. The issue of stock repurchase has been the focus of much theoretical
and practical research and is often considered as one of the classic methods to raise a company's stock price. By
reducing the number of shares outstanding, the interaction of demand and supply is expected to cause the stock
price to float upward. Further, the surge in the number of stock repurchase announcements over the last decade
has raised the question of whether repurchase transactions offer firms long-term benefits.
The company may buy-back shares from the existing shareholders on a proportionate basis either
through tender offer; or from the open market either by inviting tenders or by the book building process; or odd-
lot shares; or the shares issued to employees pursuant to a scheme of stock option or sweat equity. In USA,
companies are allowed to do treasury operations in their stock whereas Indian companies have to necessarily
cancel their shares pursuant to their buyback programme. As a part of laid out procedure the management is
required to inform the shareholders the necessity for the share buyback, basis of the offer price, sources of
funds, and the management discussion on the likely impact of the buyback on the company in the offer
document. Most of the Indian companies in their offer document have claimed that the share buyback
programme is expected to contribute to the overall enhancement of the shareholder value. However, no
supportive analysis has been provided in the discussion.
The paper investigates market reaction to announcements of stock repurchases and dividends and
choice between the two-payout methods. The analysis uses data on firms listed in the BSE 500 index in the
sample period of 2002 to 2004.
2. REVIEW OF LITERATURE:
Jensen (1986) states that firms repurchase stocks to distribute excess cash flow. There is a positive
relationship between stock repurchases and levels of cash flows [see for example, Stephens and Weisbach
(1998); Vermaelen (1981)]. Harris and Ramsay (1995) find that the share buyback activity creates value for the
company and the remaining shareholders.
1 Recent studies of Fama and French (2000) and Grullon and Michaely (2002) show how the pattern of payout
policy has been changing in the last decades.
2 Compare, e.g., Asquith and Mullins (1983) and Ikenberry, Lakonishok, and Vermaelen (1995). The former
paper reports the initial reaction to dividend initiations of +3.7% and in the later paper the reaction to stock
repurchases is +3.54%.
Bartov, Eli (1998) analysis of 150 firms announcing share repurchase during the period 1986 to 1992
vis--vis other firms in the same industries that preferred to increase dividends finds that stock buyback firms
had higher book to market ratio and higher proportion of institutional investors. This highlights under
valuation and tax advantage as the two major motivations of the share repurchase programme.
Vermaelen (1981) and Ikenberry, Lakonishok and Vermaelen (1995) find abnormal returns of
approximately 3% over a two-day announcement period. In addition, Ikenberry, Lakonishok and Vermaelen
(1995) hypothesize that stock repurchases primarily serve as a signaling mechanism and thereby provides new
information. The signaling hypothesis led to an investigation of the long-run performance of companies
announcing stock repurchases. Using a sample of 1,239 open market repurchases announced between 1980 and
1990, they show that investing in companies that announce stock repurchases results in 12.4% abnormal returns
over 4 years. However their examination was done without regard to whether the programs were actually
completed. Firms seem to decide to repurchase when they are undervalued and the market discounts only part of
this information at the announcement. If we assume that stock price is for some reason undervalued before a
repurchase announcement and remains so afterwards then repurchasing can create positive value to shareholders
analogous to that of Porter, Roenfeldt, and Sicherman (1999). They show that undervalued closed end funds
gain in value after repurchasing their shares. It is even if the discount factor stays at the same level after
repurchases
3
.
Early work by Comment and Jarrell (1991) investigates the signaling hypothesis as it relates to stock
repurchase announcements. They examine the three main methods of repurchasing stock tender offers, Dutch
auction, and open market repurchases and conclude that fixed-price tender offers generally signal the most
information to investors and open-market repurchase the least. The signaling hypothesis would also
imply that firms repurchase to gain maximum benefits from repurchasing when their stock price is most
undervalued.
Research also focuses on firm earnings changes surrounding stock repurchases. Nohel and Tarhan
(1998) examine tender share repurchases to differentiate between the information signaling and free cash flow
hypothesis and conclude that the positive investor reaction to repurchases is best explained by the free cash flow
hypothesis.
Essentially, from the financial policy indifference theorem of Miller and Modigliani (1961), in perfect
and complete markets there should be no positive market reaction to any payout announcements, and stock
repurchases and dividends would be interchangeable. In fact, payout policy would not create any value and any
cash distributions to shareholders would be obsolete. Two questions relevant to this paper arise in light of the
Miller and Modigliani s (1961) payout policy indifference theorem: What factors create the positive market
3
Undervaluation of closed-end funds is clearly visible and measurable.
reaction to payout announcements? What explains the observed cross-sectional differences in the market
reaction? In the corporate finance literature some of the assumptions of perfect and complete markets have been
lifted to explain empirical evidence, which is often at odds with the dividend policy indifference theorem.
In signalling models of Bhattacharya (1979) and Miller and Rock (1985) cash distributions to
shareholders convey positive information about firm s future earnings. However, in these settings dividends
and stock repurchases are perfect substitutes. There is mixed empirical evidence of cash disbursements
information signalling. Bartov (1991) find (weak) increase of earnings after open market stock repurchases
announcements, but a more recent study of Grullon and Michaely (2003) does not confirm this result
4
. The
evidence for dividends announcements varies in similar manner.
This study is one of the work examining the impact of stock repurchase program and dividend
announcements on share price behaviour and their relative signaling power with reference to Indian firms.
3. NEED & SIGNIFICANCE OF THE STUDY
There has been a tremendous growth in the share buyback activity first in US, then the UK, and later in
1990s in Continental European countries (see for example, Stonham, 2002). A large number of Indian
companies have announced their share buyback programmes too. These are to name a few Advani-Oerlikon
Limited, Ashoka Leylands Limited, Blue Star Limited, Finolex Cables Limited, Indian Nippon Electricals
Limited, Indian Resort Hotels Limited, Motor Industries Company Limited, Raymonds Limited, Reliance
Industries Limited, SRF Limited and Siemens Limited. Thus, there is a need to study the significance of this
emerging trend, its signaling effect on share price and its impact on the wealth of the shareholders. It is believed
that the findings of the study will be of immense use to academia and the industry to understand the practice and
develop new theories.
4. HYPOTHESIS
Our objectives are twofold. (1) First, we analyse if the market recognizes any differences between
stock repurchases and dividends and if it reacts more favourably to firms announcements of one of the payout
instruments. This leads to the hypothesis:
H1: There is no positive signaling in Share price behaviour around buybacks.
H2: There is no positive signaling in Share price behaviour around dividend
announcement.
H3: There exist no significant difference between the cumulative abnormal
returns of stock repurchases and dividend announcements.
4
The information signaling of tender offer and Dutch auction stock repurchases is documented more
convincingly (See Vermaelen (1981), Comment and Jarrell (1991), and Lie and McConnell (1998)), but in this
paper the focus is on the most popular form of repurchases, open market repurchases.
2) Secondly, as the market is assumed to be efficient, the expectation is that stock prices should
reflect the level of stock repurchases, given that an abnormal return is evident upon the announcement. This
leads to the fourth hypothesis:
H4: Stock prices in the post announcement period will reflect the level of
stock repurchases.
Alternatively, if the market reaction to the repurchase announcement is in response to a signal of under-
pricing, then stock prices may not adjust to reflect the extent of actual stock repurchases.
To test the hypothesis, market adjusted cumulative abnormal returns (the BSE 500 index was used as
the market reference) was calculated for each stock for a 5-day period, starting on the announcement date. Next,
the average cumulative abnormal returns are calculated and the means of abnormal returns for various level of
repurchase are compared for statistical significance.
5. SAMPLE
The sample consists of stock repurchase announcements obtained from the on line database of Bombay
Stock Exchange between January 2002 and December 2004. (Although several announcements relating to
repurchase of preference shares were recorded in the review period, the scope of this paper is limited to
repurchases of common stock only.) A total of 61 repurchase announcements were identified, found, with the
final sample being reduced to 22. Similarly, a total of 55-dividend announcements were reported, of which 21
were taken in the final sample. The study was limited only to 22 firms because several firms were replaced in
the BSE 500 index between 2002 - 2004, few firms were advised not to proceed on account of non compliance
of Clause 40A, few firms announced the suspension of the repurchase plans, while detailed stock information
was unavailable for a few, others hasn t made a dividend announcement, such firms were thus eliminated to
avoid bias. Of the final sample (22), 6 firms (27%) purchased less than 25%, 5 firms (23%) purchased between
26% and 50%, 2 firms (9%) purchased between 51% and 75% and 9 firms (41%) purchased between 76% and
100. (See Table 1 & 2). .
Stock prices and dividend announcements were obtained from BSE database. The Buy Back status
report published by Financial Express provided information of opening and closure date of the repurchase,
percentage of repurchase offered, percentage of repurchase accepted and pre & post number of outstanding
shares. In addition, the data is free of day-of-the-week skew as the announcements were fairly evenly spread
across all five trading days. Table 1 gives the sample breakdown across years.
Table 1 provides description of the sample. The sample consists of announcements of stock
repurchases and dividends of Indian firms over the period of 2002 - 2004. The sampled units are the same for
both stock repurchases and dividend announcements, so as to assess the comparative signaling power of the
event on share price.
Table 1
Sample Description
2002 2003 2004 Total
Stock repurchases samples
Number of announcements 13 7 2 22
Dividend announcements samples
Number of announcements 11 7 2 21
Repurchase level
0 - 25% 4 1 1 6
26 - 50% 1 3 1 5
51 - 75% 2 0 0 2
76 - >=100% 6 3 0 9
The sample is divided into quintiles based on the extent of share repurchases. The first quintile includes
firms with a repurchase level less than 25%, second quintile for firms with 26% - 50%, third quintile for firms
with 51% - 75% and the fourth quintile represents firms with 76% - >100% repurchases.
The mean announced size of the repurchase program is approximately 0.25 percent of the firm s total
shares outstanding at the announcement date and the median is approximately 0.12 percent of the firm s shares
outstanding.
6. METHODOLOGY
Stephens and Weisbach (1998) points out that share repurchases could be neither observed at the time
the transaction occurs or directly measured afterward. They use four methods as proxies for the actual number
of shares repurchased by firms subsequent to the announcement of an open market repurchase programs. The
four methods are; 1) monthly decreases in the firm s shares outstanding 2) quarterly decreases in the firm s
shares outstanding 3) amount spent reacquiring firm stock using minimum and average quarterly purchase price,
and 4) quarterly increases in the money value of treasury stock divided by minimum and average prices during
the quarter. Empirically, the four methods produced results that were basically similar. This paper uses the
buyback status report published by Financial Express for the firms in the sample.
6.1 Short-termAbnormal Returns
The first step in the analysis of the impact of actual stock repurchase on the level of abnormal returns
requires computing the market adjusted cumulative abnormal returns (CAR) for the sample of 22 firms over a
five-day trading period starting on the announcement date. By examining this shorter interval, the analysis
investigates whether the abnormal returns just after the announcement ultimately impact the subsequent levels
of repurchases. (The announcement date was included since the publication date would be normally a trading
date and investors have the opportunity to respond to such announcements on the same date.)
Standard event-study procedures as used by Comment and Jarrell (1991) and Stephens and Weisbach
(1998) were used to calculate the abnormal returns. The abnormal return in any given period is the market
model residual, which is the difference between the stock s actual return and the predicted return based on the
market return for that period. Hence the market adjusted abnormal returns were calculated as:
ARij=RTij- RM------- (1)
Where ARij is the abnormal return for firm j on day i.
RTij is the actual return for firm j on day i.
The total percentage return to shareholders (RTt ) on day t is given by the expression:
(RTt ) = [(Pt - Pt -1) + Dt ]/Pt 1
And RMi is the return on the BSE 500 Index on day i.
The market adjusted abnormal returns are calculated as in Equation (1) above. The five-day cumulative
abnormal returns for each firm is calculated as:
5-Day CARij =ARij , for days i =0, 1, 2, 3, 4
where the announcement day is day 0.
Cumulative abnormal returns are then averaged over the five-day period starting on the announcement
date to obtain the five-day cumulative average abnormal returns as:
5-Day CAR =(CARj)/n for all firms j = 1,2,..n
The average cumulative abnormal returns are then compared for statistical difference between the
means in each quintile. Statistical significance in the difference in the means would indicate that abnormal
return is related to the level of repurchases undertaken during the five-day period.
7. RESULTS
Most event studies use the market model to estimate normal performance of a given stock. The main
focus of this study is on stock repurchases, and the sample of repurchase announcements is already relatively
thin. Firms that repurchase stocks are on an average small. Cumulative Abnormal Returns (CAR) in (Table 2.1
and 2.2 appendix) is consistent with the expectations, the market reacts positively to announcements of both
dividend initiations and stock repurchases. As the computed CAR of repurchases and CAR of dividends
confirms the existence of positive signaling of share price behaviour in the market, hypothesis 1 and 2 are
rejected. Fig 1 and 2 plotted with 5-day pre-CAR and 5-day post CAR prove the positive signaling effect of
the announcements.
-0.040
-0.020
0.000
0.020
0.040
0.060
0.080
0.100
0.120
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22
Sample firms
C
A
R
post
pre
Figure 1
Share price behaviour around buyback announcements
-0.040
-0.020
0.000
0.020
0.040
0.060
0.080
0.100
0.120
1 3 5 7 9
1
1
1
3
1
5
1
7
1
9
2
1
Sample firms
post
pre
Figure 2
Share price behaviour around dividend announcements
The next step is to identify the event or announcement with a higher signaling power than the other.
For which the mean CAR of repurchase announcement 0.015* was compared with the mean CAR of dividend
announcement 0.014*(* Statistically significant at 0.05 level). The difference between the means was negligible,
even then it can be concluded that the CAR around stock repurchase are higher than CAR around dividend
announcement. Hence, hypothesis 3 on significant difference between the announcements is rejected and
concluded that the market reaction to repurchase announcements was significantly larger than dividends.
Cumulative Abnormal Return surrounding payout announcements in different periods centered on the
announcement day (announcement day = 0) are calculated. Table 3.1& 3.2 presents cumulative abnormal returns
around announcement day. All the analyses use the strongest abnormal returns of the 5- day announcement
period.
Table 3.1
Cumulative Abnormal Returns Around the Stock Repurchase Announcements
Days -1 to +1 -2 to +2 -3 to +3 -4 to +4 -5 to +5
Mean CAR
3.2* 3.2* 3.1* 2.3* 1.95*
t stat
(2.65)* (2.89) (4.23) (3.40) (3.00)
* Significant at the two tailed 0.05 level
Abnormal returns around stock repurchase announcements are significant at all standard levels of
confidence in all time windows. The abnormal returns reach the most statistically significant level of 3.2% in the
1-day window and as the analysed time period widen, the abnormal returns decreases and reach 1.4% in the 5-
day window.
Table 3.2
Cumulative Abnormal Returns Around the Dividend Announcements
Days -1 to +1 -2 to +2 -3 to +3 -4 to +4 -5 to +5
Mean CAR
2.08* 1.82* 1.22* 1.07* 1.07*
t stat
(3.87) (5.40) (2.71) (2.72) (3.12)*
* Significant at the two tailed 0.05 level
Dividend initiations have the most significant abnormal returns also in the 1-day window. The return
was 2.08% and the lowest being 1.07% at the 5- day window.
Table 3.1 & 3.2 indicates that the overall sample had an average five-day cumulative abnormal return
of 2.35 %(stock repurchases) and 1.45% (dividends). This finding varies from earlier works that concentrates on
the shorter time period of two days after announcement. For example, Ikenberry, Lakonishok, and Vermaelen
(1995) find 2-day abnormal returns of approximately 3%. A possible explanation is that the market reaction in
the Indian market is complete within a day or two.
Cumulative average abnormal returns for both samples stock repurchases and dividend initiations
around the announcement date were plotted. In Fig 3 the left part of the figure represents a time period, from 5
days prior to announcements and the right part represents the time period of 5 days after announcements. The
divider represents the announcement day ie. day 0. It is evident that stock repurchases have higher abnormal
returns upon announcement than do dividend initiations.
-0.02
-0.01
0
0.01
0.02
0.03
0.04
0.05
0.06
DAYS (announcement date)
C
A
R
Repurchase
Dividend
0
Figure 3
CAR Around Announcement Date
To test, hypothesis 4 that stock prices in the post announcement period will reflect the level of stock
repurchase. The sample is divided into quintiles depending on the extent of share repurchases. The first quintile
includes firms with a repurchase level less than 25%, second quintile for firms with 26% - 50%, third quintile
for firms with 51% - 75% and the fourth quintile represents firms with 76%- >100% repurchases. (refer Table
4.1 & 4.2 )
Table 4.1 presents cumulative abnormal returns in 5-day window centered on the repurchase announcement
date.
Cumulative Abnormal Returns Around Stock Repurchases
Between 2002 - 2004 For Various Repurchase Levels
2002 2003 2004 Total
5 day returns
0 - 25% 0.012 0.0031 -0.0035 0.0116
26 - 50% 0.0321 0.0715 0.0044 0.108
51 - 75% 0.0091 - - 0.0091
76 - 100% 0.017 0.014 - 0.031
Total 0.0702 0.0886 0.0009 0.1597
Table 4.2 presents cumulative abnormal returns in 5-day window centered on the dividend announcement date.
Cumulative Abnormal Returns Around Dividend Announcement
between 2002 - 2004 For Various Repurchase Levels
2002 2003 2004 Total
5 day returns
0 - 25%repurchase levels 0.002 0.0154 - 0.0174
26 - 50% 0.0036 0.0145 0.0088 0.0269
51 - 75% 0.0142 - - 0.0142
76 - 100% 0.015 0.032 - 0.047
Total 0.0348 0.0619 0.0088 0.1055
After grouping the firms in quintiles, an examination of the differences between the means (See Table
5- One way ANOVA) indicate no statistical significance thus implying that any short-term abnormal returns
does not influence subsequent levels of repurchases.
Table 5
One way ANOVA
ANOVA
Source of
Variation SS df MS F P-value F crit
Between Groups 0.0006599 3 0.00022 0.46447 0.711627 3.343885
Within Groups 0.0066298 14 0.0004736
Total 0.0072897 17
The statistical insignificance in the difference in the means indicate that abnormal return is not related
to the level of repurchase undertaken during the 5-day period and hence, hypothesis 4 is rejected and concluded
that various repurchase levels do not have an influence on the share price behaviour.
8 CONCLUSION:
The study indicates that stock repurchases and dividend announcements primarily serve as a signaling
mechanism of management s view that their firm s stock is undervalued. Stock repurchase and dividend
announcements have also been shown to result in positive and statistically significant abnormal returns around
the announcement date. For stock repurchase and dividend announcements the markets immediately signalled
an upward swing in the share price movement. But this positive signaling existed only for a day after the
announcements, after which the extent of positivity of shares started decreasing. A possible explanation is that
the market reaction in the Indian market to events or announcements such as stock repurchases and dividends
was complete within a day or two.
Hence, if management perceives that the announcement has worked to their advantage in contributing
to the rise in price of the shares, they would have accomplished their main objective of enhancing shareholder
value. At the same time, the nature of open market repurchase programs allows firms to take advantage of
changes in stock price and provides flexibility to firms that face uncertain cash flows during the repurchase
period. The findings contained in this paper have significant implications. The short-term effects of the
announcements are consistent with earlier works with positive abnormal returns. More importantly, this study
provides new insights over stock price performance, which is shown to be independent of the level of
repurchase transactions, the implication is that firms will not reap additional stock price benefits from following
through on repurchasing stock after announcing a plan to do so, and the repurchase announcement is sufficient
to obtain abnormal returns. Alternatively, if the market reaction to the repurchase announcement is in response
to a signal of under-pricing, then stock prices may not adjust to reflect the extent of actual stock repurchases.
Investors therefore must view repurchase announcements as a means of short-term gain and not a viable strategy
for significant long-term abnormal gains.
BIBILOGRAPHY
1. Bartov, Eli, 1998, Open-market stock repurchases as signals for earnings and risk changes, Journal of
Financial Economics 14, 275294.
2. Bhattacharya, Sudipto, 1979, Imperfect information, dividend policy, and the bird in the hand fallacy, Bell
Journal of Economics 10, 259270.
3. Comment, Robert, and Gregg A. Jarrell, 1991, The relative signaling power of dutch-auction and fixed-price
self-tender offers and open-market share repurchases, Journal of Finance 46, 12431271.
4. Grullon, Gustavo, and Roni Michaely, 2002, Dividends, share repurchases and the substitution
hypothesis,Journal of Finance 57, 16491684.
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Journal of Corporate Laws, 4, 393-416.
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repurchases, Journal of Financial Economics 39, 181208.
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Economic Review 76, 323329.
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costs of free cash flow, Journal of Financial Economics 49, 187222.
11. Porter, Gary E., Rodney L. Roenfeldt, and Neil W. Sicherman, 1999, The value of open market
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APPENDIX
Table 2.1
SRP -5 day pre-CAR Vs 5 day post-CAR
pre post
1 0.074 -0.032
2 0.005 -0.004
3 -0.017 0.062
4 0.011 -0.010
5 0.052 -0.025
6 0.019 0.057
7 0.020 0.060
8 0.021 -0.006
9 0.023 0.022
10 0.018 -0.017
11 0.010 0.008
12 0.006 -0.011
13 -0.007 0.112
14 0.021 0.011
15 0.020 0.058
16 -0.003 0.076
17 -0.018 -0.003
18 0.002 -0.006
19 0.041 -0.035
20 0.012 -0.004
21 -0.008 0.000
22 -0.001 -0.014
MEAN 0.0108 0.015744
Table 2.2
DIVD-5 day pre-CAR Vs 5 day post-CAR
pre post
1 -0.004 -0.015
2 0.010 -0.015
3 0.035 -0.063
4 0.006 -0.009
5 0.010 -0.002
6 0.027 0.075
7 0.030 0.064
8 0.003 0.005
9 0.022 0.020
10 0.022 0.005
11 -0.009 0.029
12 -0.001 0.018
13 -0.033 0.022
14 0.087 -0.055
15 -0.007 0.109
16 0.001 0.017
17 0.001 -0.009
18 -0.007 -0.002
19 -0.010 0.012
20 0.010 0.004
21 -0.003 0.011
MEAN 0.010 0.012
AUTHORS PROFILE
1. Dr. P. Thirumalvalavan is currently surviving as Reader, School of Management and
Entrepreneur Development, Bharathiar University. He holds 28 years of teaching experience and
has specialised in the area of Finance and Investments. He has attended a number of National
Level and International Level Seminar and has published many research articles in National and
International Journals. He has also served as a Dean, College of Business Studies, AL Ghurair
University, Dubai and was instrumental in getting AACSB accreditation for it s Under Graduate
Programmes. He has guided number of research projects.
2. K. Sunitha is a Full time Ph. D Research Scholar, School of Management and Entrepreneur
Development, Bharathiar University. She holds about 8 years of teaching experience and has
specialised in the area of Equity Research. She has attended a number of National Level Seminars
and conferences.