Market Response to Lumpy Skin Disease: Evidence from Indian Dairy Stocks
Authors
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Arkajit Banerjee
MSc Statistics Student (Corresponding Author), Department of Statistics, University of Kalyani, Nadia - 741 235, West Bengal
https://orcid.org/0009-0006-5419-1959
DOI:
https://doi.org/10.17010/ijrcm/2025/v12i3/175892Keywords:
event study, lumpy skin disease, dairy sector, abnormal returns, market efficiency.JEL Classification Codes : G14, Q12, Q14
Publication Chronology: Paper Submission Date : July 1, 2025 ; Paper sent back for Revision : July 20, 2025 ; Paper Acceptance Date : August 10, 2025.
Abstract
Purpose : This study examined whether the 2022 Lumpy Skin Disease outbreak affected the stock prices of Indian dairy firms.
Design/Methodology : An event study approach was used with the market model to measure abnormal returns (AR) for four NSE-listed dairy companies over the event window.
Findings : None of the firms showed statistically significant AR or cumulative AR during the outbreak period.
Practical Implications : The findings indicated that the market did not perceive the outbreak as financially material, suggesting gaps in disease risk communication and investor awareness.
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References
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