Title: Effect of mergers and acquisitions on short-term gain to equity shareholders of acquiring firms in India

Authors: Mayank Joshipura; Manoj Panda

Addresses: School of Business Management, NMIMS University, V.L. Mehta Road, Vile Parle (West), Mumbai, 400056, India ' School of Business Management, NMIMS University, V.L. Mehta Road, Vile Parle (West), Mumbai, 400056, India

Abstract: This paper examines the effect of mergers and acquisitions announcements on short-term gain for the acquiring firm's shareholders using the event study method. The study analyses 332 acquiring firms in post-financial crisis era (2009-2015). We report positive wealth effect leading to and on announcement. The effect reverses subsequently. Positive abnormal return leading to announcement indicates leakage of information before the formal announcement. Results of this study is consistent with similar other studies in developed as well as emerging markets.

Keywords: mergers and acquisitions; M&A; event study; market efficiency; India.

DOI: 10.1504/AAJFA.2019.096908

Afro-Asian Journal of Finance and Accounting, 2019 Vol.9 No.1, pp.1 - 20

Received: 21 Mar 2017
Accepted: 27 Nov 2017
Published online: 13 Dec 2018 *

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