Behavioral Perspective on Investor’s Reaction to Mergers and Acquisitions Announcements
Neethu T C1, Rajeesh Viswanathan2, Arun T C3, Jahira Parveen4
1Neethu T C, Department of International Business, School of Management, Pondicherry University, Pondicherry (Tamil Nadu), India.
2Dr. Rajeesh Viswanathan, Assistant Professor, Department of International Business, School of Management, Pondicherry University, Pondicherry (Tamil Nadu), India.
3Arun T C, Department of Management, School of Management, Pondicherry University, Karaikal Campus, Karaikal, India
4Dr. Jahira Parveen, Faculty of Management, SRM Institute of Technology, Chennai (Tamil Nadu), India.
Manuscript received on 04 July 2019 | Revised Manuscript received on 14 August 2019 | Manuscript Published on 27 August 2019 | PP: 334-336 | Volume-8 Issue-2S4 July 2019 | Retrieval Number: B10630782S419/2019©BEIESP | DOI: 10.35940/ijrte.B1063.0782S419
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© The Authors. 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 study focuses at mergers and acquisitions (M&As) in India and explains the shareholder’s value creation using stock return data from 2005 to 2016. The data analyzed with the use of market model of event study. The deals classified into cash-financed and stock-financed on the basis of mode of payment. The results suggest that the reaction towards the M&As announcements are spontaneous in Indian economy and the shareholders gaining positively around the M&As announcement on an average. Shareholders of cash financed deals are creating more value than that of the stock financed deals.
Keywords: Mergers and Acquisitions, Stock Return, Event Study, Mode of Payment.
Scope of the Article: Social Sciences