Abstract
Corporate Governance is of a paramount issue to a company, and it should be given equal significance as the companies give for its business plan, since a market is a culmination of companies upholding corporate governance is the duties of the companies if not it will have a macro effect in the economy. There still companies who pierce the veil and in this study an attempt has been made to decode the possible financial frauds using Didier Sornette’s drawdown approach. Top 12 companies according to the weights in S&P 500 is taken as sample also an overall analysis is done for the S&P 500 Index. This approach identifies the breakpoints and clearly detects the critical points and indicates the dates. Data samples of 7 years have taken to ensure the robustness of the model. This model helps investors get a broader perspective and idea about the companies in which they can invest their money. Events related to the critical points can be traced back and the relevance of irregularity can be comprehended and further decisions can be taken. This model can also be used Foreign Institutional Investors and Qualified Institutional Buyers to have cross-verification of governance from a different perspective altogether.
Published Version
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