Do Corporate Disclosure Practices Ensure Equitable Market Participation? Evidence from Rights Issue Announcements with Implications for Investors with Disabilities

Abstract

This study examines the accessibility and equity in dissemination of financial information in the Indian equity market by analysing stock price reactions to rights issue announcements. The event study methodology is adopted to investigate whether publicly available corporate information is efficiently and equitably absorbed by all market participants. The findings reveal significant abnormal returns prior to announcements, indicating potential information leakage, as well as persistent abnormal returns following announcements, suggesting delay in the assimilation of information.

While traditional interpretations of such results point to market inefficiency, this study extends that analysis further by highlighting the implications on the inclusive participation in financial markets. Specifically, delays and asymmetries in information flow may put vulnerable groups at a disproportionate disadvantage. These include individuals with disabilities who may face barriers in accessing, interpreting, or acting upon financial information.

The study underscores the importance of accessible communication, inclusive financial education, and equitable disclosure mechanisms to ensure broader participation. The findings have implications for financial and special educators, policymakers, and service providers working toward enhancing financial literacy and inclusion for individuals with disabilities, while also aiding regulatory efforts at improving transparency and accessibility to financial markets.