[7] IMPACT OF INTERIM FINANCIAL REPORTING ON STOCK PRICE VOLATILITY: EVIDENCE FROM NIFTY 50 INDEXED IT COMPANIES IN INDIA UNDER IND AS 34

How to Cite the Article: Shivakumar C Y, Manjunath M & Sunil G E (2026). Impact of Interim Financial Reporting on Stock Price Volatility: Evidence from NIFTY 50 Indexed IT Companies in India under Ind AS 34. International Journal of Multidisciplinary Research & Reviews, 5(7),6580. https://doi.org/10.56815/ijmrr.v5i7.2026.65-80

Abstract

Interim financial reporting, governed in India by Indian Accounting Standard 34 (Ind AS 34), mandates listed companies to publish condensed financial statements for each quarter and half-year period. This study investigates the impact of such interim disclosures on the stock price volatility of the top five information technology (IT) companies listed on the NIFTY 50 index — Tata Consultancy Services (TCS), Infosys, Wipro, HCL Technologies, and Tech Mahindra — over the study period FY 202324 and FY 2024–25 (Q1 FY24 to Q4 FY25). Using an event study methodology combined with multiple regression analysis, the study examines abnormal returns and volatility patterns in the event window surrounding each quarterly earnings announcement. Secondary data on stock prices, earnings per share, revenue, and key financial ratios were sourced from the National Stock Exchange (NSE), Bombay Stock Exchange (BSE), and official company filings. All tests were conducted at a 5 per cent (0.05) level of significance. Findings reveal that interim financial disclosures under Ind AS 34 generate statistically significant abnormal returns and elevated price volatility in the immediate post-announcement window, with EPS surprise and market sentiment emerging as the strongest drivers. The study contributes to the growing empirical literature on the information content of mandatory quarterly reporting in the Indian IT sector.