Assessing Investor Perception to Improve Effectiveness of Corporate Actions: A Study on Measures for Enhancing Corporate Action
Author : Rajashekar, D Sudarsana Murthy and T Narayana Reddy
Abstract :
This study examines the perception of investors in Andhra Pradesh towards corporate actions and suggests measures to improve their effectiveness. The study collected primary data from investors with knowledge of corporate actions and their impact on investment returns. The data was analyzed using descriptive and inferential statistics, including factor analysis and discriminant analysis. The findings of the study suggest that investors in Andhra Pradesh place significant importance on corporate actions that provide financial benefits, signal growth and development, boost investor confidence, generate purchasing interest, and increase demand for shares. Corporate actions such as discounted rights issue and stock split announcements that create demand for shares and attract retail participation in the secondary market are also viewed favorably. Furthermore, the study indicates that investors in Andhra Pradesh value companies that prioritize long-term growth prospects and maintain financial discipline. Companies that prioritize sustainability and ethical business practices and provide independent boards of directors are also viewed positively by investors. The study also suggests further research on the factors that influence investor decision-making and a deeper understanding of investor perceptions and decision-making processes.
Keywords :
Investor perception, corporate actions, financial benefits, financial discipline, Andhra Pradesh
