Abstract
This study is an attempt to analyse how stock of acquirer banks behaves during pre and post- merger and acquisition (MA Asimakopoulos and Athanasoglou (2012) results suggest that shareholders of Indian acquirer banks in India generate small and insignificant abnormal returns from integration deals. Return variability is also noticed from the curvy jumps in average abnormal spread of returns during announcement period. These results are in line with findings of Pessanha et al. (2016) and Kamau, (2016). Whereas, average abnormal change in liquidity witnesses a sharp hike on the day 0 i.e. the date of deal announcement and it remains negative through-out the post deal period. These finding are consistent with the findings of Lee and Chung, (2013); Lei and Li, (2013); Lipson and Mortal, (2007). Keywords: Merger, Acquisition, Stock Return, Stock Volatility, Stock Liquidity, Average Abnormal Return, Average Abnormal Liquidity, Average Abnormal Spread, Stock Spread, Event Study Methodology.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have