A Study of Market Response of The Announcement of Mergers and Acquisitions In Indian Manufacturing Industry
Honey Gupta1, L.K. Singh2

1Honey Gupta, Research Scholar, Department of Management Studies, Kumaun University, Nainital (Uttarakhand)-263001, India.
2Dr. L. K. Singh, Professor, Department of Management Studies, Kumaun University, Nainital (Uttarakhand), India.
Manuscript received on March 28, 2018. | Revised Manuscript received on April 11, 2018. | Manuscript published on April 15, 2018. | PP: 16-21 | Volume-3 Issue-2, April 2018. | Retrieval Number: B0179043218
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© The Authors. Published By: Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)

Abstract: The present paper is an attempt to find the impact of M&A announcement on the share price of Indian acquirer firms. This study examines the 25 Indian domestic Mergers and Acquisitions held in year 2009 & 2010 by using event study methodology. Only firms from secondary sector of Indian economy were selected for this study. T test was applied on Average Abnormal returns (AAR) & cumulative Average Abnormal returns (CAAR) of observed event windows (-5,+5), (- 2,+2) and (-1,+1) to examine statistical validity. After analysing all returns, it is found that Mergers and Acquisitions announcement do not have any significant impact on CAAR of Acquirer firms but AAR is statistically significantly positive on some days of (-5,+5)event window.
Keywords: Mergers & Acquisitions (M&A), Event study, Average Abnormal returns (AAR), cumulative Average Abnormal returns (CAAR), Market Model.