Guwahati, Oct. 22 -- Banking fraud announcements trigger sharper stock market losses for public sector banks than their private sector counterparts, according to a study by researchers from Nagaland University and Pandit Deendayal Upadhyaya Adarsha Mahavidyalaya Tulungia, Assam.

The study found that ownership structure, institutional credibility and bank size influence how investors respond to financial misconduct. It also found that fraud disclosures can affect the share prices of banks beyond those directly involved.

The researchers analysed four major banking fraud cases involving IDBI Bank, Punjab National Bank, Bank of India and Canara Bank. Using stock market data from the Bombay Stock Exchange (BSE), they applied event study meth...