Volume : 6, Issue : 6, June - 2017

Stock Price Behavior around Mergers and Acquisitions Announcement: Evidence from India

Neethu . T. C, Dr. Rajeesh Viswanathan

Abstract :

<p>&nbsp;<span style="font-family: &quot;Times New Roman&quot;, serif; font-size: 12pt; text-align: justify;">The event study technique is the most valuable tool in strategic management research. It helps in analyzing the behavior of investors and forecasting the trends of stock market towards an event.</span><span style="font-family: &quot;Times New Roman&quot;, serif; font-size: 12pt; text-align: justify;">&nbsp; </span><span style="font-family: &quot;Times New Roman&quot;, serif; font-size: 12pt; text-align: justify;">In the current study the researcher has focused on the stock price reaction around the M&amp;A announcement. The results indicated that the Indian bidders had a positive wealth gain around the announcement. The study also investigated the same with respect to different classification on the basis of location of the target, method of payment, industry relatedness and financial crisis.&nbsp;</span></p> <p class="MsoNormal" style="text-align:justify;line-height:150%"><span style="font-size:12.0pt;line-height:150%;font-family:&quot;Times New Roman&quot;,serif"><o:p></o:p></span></p>