Stock Price Reactions to M&A
Journal Title: International Journal of Business and Management Invention - Year 2019, Vol 8, Issue 1
Abstract
Mergers and Acquisitions form a very important and vital activity for the expansion of companies and various articles and research has been undertaken in the area. Thisresearch examines if there are shortterm impact on the returns that can be attributed to the completion of Mergers and Acquisitions. The event study methodology is used to analyse 4 different mergers from 2018 and a total of 8 companies are looked into. A comparative study of pre and post-merger scenario is undertaken andthe main aspect that is looked into isif the completion of the Merger has an effect on the Stock Prices. The Capital Asset Pricing Model and T-Test were the tools employed for analysis and it was found that there was no significant impact on the stock prices of 2 companies, whereas in the other 6 companies, there was a positive impact on the stock prices of the companies. Evidence suggests that the cumulative returns in the event window have a major change due to the merger and acquisition of the concerned companies.
Authors and Affiliations
Ramya Srinivasan, Meenakshi Subbiah, Siddharth Gandhi
Water Resources In The Hydrographic Basinof The Meia Ponte River, Goiás
The present research deals with the management of water resources in the basin of the Meia Ponte River, in Goiás, evidencing the characterization of this basin. Also important are the aspects of water prevention, control...
Consumers 'online Buying Behaviour: A Study With Reference To Home Appliances in Kolkata.
Internetrevolution has brought about a paradigm shift in the shopping patternof the consumers during the last decade.According to a surveyreport published by Internet World Stats as on 31st December 2017, India ranks sec...
Role of Cultural and Status Factors In Leadership Style and Organizational Effectiveness - An Overview
This paper examines the literature review on role of cultural and status factors in Leadership style and organizational effectiveness. Some of the authors views have been expressed in this paper.
Customers’ Perception Regarding the Ethical Conduct of Online Retailers during Limited-Period-Surprise-Offers in India
The rapidly growing trend of online shopping has not only resulted in an increase in e-tailers (online retailers) but has also seen to an ever-growing number of online customers, who tend to purchase products and service...
Quality Analysis of Pasuruan Regency Employee Service Using Importance Performance Analysis (IPA) Method
The key of successful staffing services is the ability of the organizers to be adaptive and responsive to face the problems, so that they are expected to be able to formulate appropriate strategies in improving the quali...