This paper studies the impact of a change in promoter shareholding on small-cap-value stocks. NIFTY Small Cap 250 index stocks within the top 20th percentile of the book-to-market (B/M) ratio of the same universe have been considered for this study. The paper uses regression analysis for...

Shareholder litigation risk, measured using the staggered adoption of universal demand (UD) laws in 23 states from 1989 to 2005, has a negative effect on stock returns. Using a difference-in-differences design, we find that, following the passage of the laws, firms have lower stock returns....