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Asian Journal of Research in Business Economics and Management
Year : 2017, Volume : 7, Issue : 9
First page : ( 133) Last page : ( 142)
Print ISSN : 2249-7307.
Article DOI : 10.5958/2249-7307.2017.00169.4

Do cross border mergers and acquisition deals create value to shareholders? evidence from India

Kalghatgi Jayant*,**, Badi Ravindranath V.***

*Bharathiar University, Coimbatore, India

**Department of Management Studies, Christ University, Bangalore, India.

***Bharathiar University, Coimbatore, India.

Online published on 21 September, 2017.

Abstract

Cross-border mergers and acquisitions (M&As) have become increasingly popular in recent years globally. They have increased over the last two decades due to liberalization policies followed by developing countries. India is no exception to this. The effect of Cross Border Acquisitions on the wealth of shareholders should be studied. A standard event study methodology is used to calculate the abnormal returns. The study reveals that the shareholders of Indian acquiring firms do receive a positive Cumulative Abnormal Returns in and around the announcement date but later on such abnormal returns does not exists. Further the study also provides results for developed and developing countries acquisitions made by Indian acquirers.

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Keywords

CBMA, Event study, Abnormal Returns, Cumulative Abnormal Returns, Parametric and non-parametric tests.

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