Abstract
The study attempts to examine the impact of merger events on the stock price behavior of acquirer as well as the target shareholders in the Indian banking industry. OLS Market Model and Constant Market Model were applied to study a sample of (17) merger announcements both by Private and Public sector banks. The results demonstrate that merger announcements in Indian banking sector have no significant impact on bidder portfolio. However for target banks, interesting results have been emerged. None of the average CAR appeared statistically significant when Global Trust Bank (GTB), a loss making bank is included in the overall target portfolio. However, the average CAR changes immediately to significant positive returns in all the run-up windows when the same bank is expelled from the target sample. Further, unlike most of the previous studies, we found no clear pattern of abnormal returns for the combined private sector banks
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
