Abstract
Indian Banking Sector is undergoing stress lately, with shortfalls in capital adequacy ratios and a steep rise in stressed assets. This led to mergers of various banks, either through private interventions or government interventions. This research aims to study the effect of these mergers on the volatilities of the acquiring firms. This study is essential as volatility affects valuation. The study aims to use panel data with 4 mergers. The study uses DCC-GARCH and modifications of GJR-GARCH to assess the volatility changes pre and post the merger. Cross-sectional techniques of abnormal volatilities show a significant increase in post-merger returns as compared to pre-merger returns.
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.
