IIMB researchers win top honors at RSFE 2025 for work on intra-group financing contagion
Prof. Varun Jindal and PhD scholar Sanchit Jain receive Best Paper and First Prize in Corporate Finance
14 June, 2025, Bengaluru: Researchers from the Finance & Accounting area at IIMB, Prof. Varun Jindal and PhD scholar Sanchit Jain, have won the Best Research Paper Award – First Prize in Corporate Finance track at the 2025 edition of the Research Symposium on Finance and Economics (RSFE). Their paper, ‘Contagion Effects of Equity Financing Announcements within Business Groups’, co-authored with Prof. Douglas Cumming, Florida Atlantic University, was selected for this award from a large number of papers presented at the conference that was hosted by IFMR Graduate School of Business between June 11 and 13.
The paper investigates whether financing decisions by firms within a business group have broader valuation effects beyond the issuing firm, using data from rights issues, private placements, and follow-on public offerings in India. The study uncovers a contagion effect: markets respond not only to the financing announcement of a group firm but also adjust the valuation of other group-affiliated firms in the same direction. The effect is especially stronger when announcing firms are group leaders and financially constrained. The effect is also stronger for announcements of larger issues of equity.
The study contributes to the understanding of capital markets in emerging economies, particularly in contexts where business groups play a dominant role in corporate structure and inter-firm dynamics.
IIMB researchers win top honors at RSFE 2025 for work on intra-group financing contagion
Prof. Varun Jindal and PhD scholar Sanchit Jain receive Best Paper and First Prize in Corporate Finance
14 June, 2025, Bengaluru: Researchers from the Finance & Accounting area at IIMB, Prof. Varun Jindal and PhD scholar Sanchit Jain, have won the Best Research Paper Award – First Prize in Corporate Finance track at the 2025 edition of the Research Symposium on Finance and Economics (RSFE). Their paper, ‘Contagion Effects of Equity Financing Announcements within Business Groups’, co-authored with Prof. Douglas Cumming, Florida Atlantic University, was selected for this award from a large number of papers presented at the conference that was hosted by IFMR Graduate School of Business between June 11 and 13.
The paper investigates whether financing decisions by firms within a business group have broader valuation effects beyond the issuing firm, using data from rights issues, private placements, and follow-on public offerings in India. The study uncovers a contagion effect: markets respond not only to the financing announcement of a group firm but also adjust the valuation of other group-affiliated firms in the same direction. The effect is especially stronger when announcing firms are group leaders and financially constrained. The effect is also stronger for announcements of larger issues of equity.
The study contributes to the understanding of capital markets in emerging economies, particularly in contexts where business groups play a dominant role in corporate structure and inter-firm dynamics.