Impact of Mergers on Stock Prices: A Study with Reference to Public Sector Banks of India

Authors

  • Samrat Banerjee
  • Subhasish Dey

DOI:

https://doi.org/10.33516/rb.v48i1-2.131-152p

Keywords:

Mergers, Event study, Significant Abnormal Returns, Cumulative Abnormal Returns, Share Prices, Public Sector Banks

Abstract

The study aims to assess the effect of mergers on the share cost of merged public sector banks which took place recently. Complete five instances of mergers were taken into consideration. For the purpose of the analysis, the event Study methodology is utilized. The data have been gathered from the official website of the National Stock Exchange. To know the market reaction towards the merger AR and CAR were calculated and T measurements were utilized to know the significant AR. The study reveals that a banking environment is directly or indirectly affected by frequent mergers. Constant fluctuations in the share prices are seen pre and post -announcement of mergers. It is also noted that merger announcements mostly had a significant impact on stock returns in all the cases.


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Published

2022-07-01

How to Cite

Banerjee, S., & Dey, S. (2022). Impact of Mergers on Stock Prices: A Study with Reference to Public Sector Banks of India. Research Bulletin, 48(1-2), 131–152. https://doi.org/10.33516/rb.v48i1-2.131-152p

Issue

Volume 48, Issue 1-2, April-July 2022

Section

Articles
Crossref
Scopus
Google Scholar
Europe PMC

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