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Impact of M&A announcement on acquiring bank's stock price - An event analysis approach

Show simple item record PushpenderKumar Kuncolienker, S. 2019-11-07T04:23:29Z 2019-11-07T04:23:29Z 2019
dc.identifier.citation The Journal of Indian Management & Strategy. 24(3); 2019; 4-8. en_US
dc.description.abstract Mergers and Acquisitions is a critical form of corporate restructuring identified as a strategic tool for competitive advantage, diversification, expand profitability, articulate global presence and also to maximise shareholder's wealth. The Indian banking paradox has seen significant increase in the Mergers and Acquisitions since the nationalisation era in due consideration of the stressed importance of consolidation by the Narasimham Committee I (1991) recommendations. This paper uses Market Model (most popular statistical model under event study methodology) to analyse the role of M&A announcements in creating value to the shareholders of acquiring banks spanning nearly two decades i.e. from 1991 to 2017. The findings of the study indicate that there has been significant impact of M&A announcements on the short term stock returns of acquiring banks and that shareholders earn significant cumulative abnormal returns as a result of the M&A announcement. Also, the aggregate analysis of percentage CARs revealed that acquirer bank stocks generated significant positive increasing abnormal returns as the duration of the event window increases. en_US
dc.publisher Jagannath International Management School, New Delhi en_US
dc.subject Commerce en_US
dc.title Impact of M&A announcement on acquiring bank's stock price - An event analysis approach en_US
dc.type Journal article en_US

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