Impact of merger and acquisition announcements on stock return, volatility and liquidity of acquirers: evidence from the Indian banking sector / Pinky Mal and Kapil Gupta
This study attempts to examine the stock behaviour of acquirer banks during pre and post-merger and acquisition (M&A) announcement period in the Indian banking sector. Data of M&A events that took place in the Indian banking sector during 2000-2018 was collected from the prowessdx database....
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| Format: | Article |
| Language: | English |
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Accounting Research Institute (ARI), Universiti Teknologi MARA, Shah Alam
2020
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| Online Access: | https://ir.uitm.edu.my/id/eprint/31041/ |
| _version_ | 1848807652581179392 |
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| author | Mal, Pinky Gupta, Kapil |
| author_facet | Mal, Pinky Gupta, Kapil |
| author_sort | Mal, Pinky |
| building | UiTM Institutional Repository |
| collection | Online Access |
| description | This study attempts to examine the stock behaviour of acquirer banks during pre and post-merger and acquisition (M&A) announcement period in the Indian banking sector. Data of M&A events that took place in the Indian banking sector during 2000-2018 was collected from the prowessdx database. The sample consisted of 31 merger and 351 acquisition announcements during 2000-2018 in the Indian Banking sector. Stock prices of sample banks were extracted from the NSE for an event window of -10 to +10 days and the event study methodology was used for analysis. The results suggest that shareholders of Indian acquirer banks generate small and insignificant abnormal returns from M&A deals. Return variability was also noticed from the curvy jumps in the average abnormal spread of returns during the announcement period. Whereas, the average abnormal change in liquidity witnessed a sharp hike on day 0 i.e. the date of deal announcement and it remained negative throughout the post-deal period. |
| first_indexed | 2025-11-14T22:46:14Z |
| format | Article |
| id | uitm-31041 |
| institution | Universiti Teknologi MARA |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T22:46:14Z |
| publishDate | 2020 |
| publisher | Accounting Research Institute (ARI), Universiti Teknologi MARA, Shah Alam |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | uitm-310412022-06-15T03:48:28Z https://ir.uitm.edu.my/id/eprint/31041/ Impact of merger and acquisition announcements on stock return, volatility and liquidity of acquirers: evidence from the Indian banking sector / Pinky Mal and Kapil Gupta mar Mal, Pinky Gupta, Kapil Investment, capital formation, speculation Investment companies. Investment trusts. Mutual funds Foreign investments. Country risk Stock exchanges. Insider trading in securities This study attempts to examine the stock behaviour of acquirer banks during pre and post-merger and acquisition (M&A) announcement period in the Indian banking sector. Data of M&A events that took place in the Indian banking sector during 2000-2018 was collected from the prowessdx database. The sample consisted of 31 merger and 351 acquisition announcements during 2000-2018 in the Indian Banking sector. Stock prices of sample banks were extracted from the NSE for an event window of -10 to +10 days and the event study methodology was used for analysis. The results suggest that shareholders of Indian acquirer banks generate small and insignificant abnormal returns from M&A deals. Return variability was also noticed from the curvy jumps in the average abnormal spread of returns during the announcement period. Whereas, the average abnormal change in liquidity witnessed a sharp hike on day 0 i.e. the date of deal announcement and it remained negative throughout the post-deal period. Accounting Research Institute (ARI), Universiti Teknologi MARA, Shah Alam 2020-04 Article PeerReviewed text en https://ir.uitm.edu.my/id/eprint/31041/1/31041.pdf Mal, Pinky and Gupta, Kapil (2020) Impact of merger and acquisition announcements on stock return, volatility and liquidity of acquirers: evidence from the Indian banking sector / Pinky Mal and Kapil Gupta. (2020) Management & Accounting Review (MAR) <https://ir.uitm.edu.my/view/publication/Management_=26_Accounting_Review_=28MAR=29.html>, 19 (1): 4. pp. 73-102. ISSN 2550-1895 https://mar.uitm.edu.my/ |
| spellingShingle | Investment, capital formation, speculation Investment companies. Investment trusts. Mutual funds Foreign investments. Country risk Stock exchanges. Insider trading in securities Mal, Pinky Gupta, Kapil Impact of merger and acquisition announcements on stock return, volatility and liquidity of acquirers: evidence from the Indian banking sector / Pinky Mal and Kapil Gupta |
| title | Impact of merger and acquisition announcements on stock return, volatility and liquidity of acquirers: evidence from the Indian banking sector / Pinky Mal and Kapil Gupta |
| title_full | Impact of merger and acquisition announcements on stock return, volatility and liquidity of acquirers: evidence from the Indian banking sector / Pinky Mal and Kapil Gupta |
| title_fullStr | Impact of merger and acquisition announcements on stock return, volatility and liquidity of acquirers: evidence from the Indian banking sector / Pinky Mal and Kapil Gupta |
| title_full_unstemmed | Impact of merger and acquisition announcements on stock return, volatility and liquidity of acquirers: evidence from the Indian banking sector / Pinky Mal and Kapil Gupta |
| title_short | Impact of merger and acquisition announcements on stock return, volatility and liquidity of acquirers: evidence from the Indian banking sector / Pinky Mal and Kapil Gupta |
| title_sort | impact of merger and acquisition announcements on stock return, volatility and liquidity of acquirers: evidence from the indian banking sector / pinky mal and kapil gupta |
| topic | Investment, capital formation, speculation Investment companies. Investment trusts. Mutual funds Foreign investments. Country risk Stock exchanges. Insider trading in securities |
| url | https://ir.uitm.edu.my/id/eprint/31041/ https://ir.uitm.edu.my/id/eprint/31041/ |