International Journal of Finance and Commerce

International Journal of Finance and Commerce


International Journal of Finance and Commerce
International Journal of Finance and Commerce
2022, Vol. 4, Issue 1
Impact of merger and acquisition announcement on stock returns: Review of literature

R K Gupta, Barun Kumar Jha

Current study investigates the impact of “Merger and Acquisition” event on stock returns of the acquiring firms. Previous researches have given a rise to so many questions with reference to the effect of “Mergers and Acquisition (M&A)” on returns of shareholders of the acquiring companies. The researchers tried to spotlight on the ‘domestic’ and ‘cross-border’ “Mergers and Acquisition (M&A)”. In this structure, the timing and the terms & conditions of the takeover are subjective. The thrust of the model for abnormal announcement returns are constant with the attainable experimental evidences. The deals are categorized in two parts: ‘cash-financed’ and ‘stock-financed’. The outcome of study recommends that response concerning “Mergers and Acquisition (M&A)” announcements are unforced and impulsive and the shareholders gain positive returns on an average during the announcement period.‘Cash-financed’ deals create more value as compared to ‘stock-financed’ deals.
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How to cite this article:
R K Gupta, Barun Kumar Jha. Impact of merger and acquisition announcement on stock returns: Review of literature. International Journal of Finance and Commerce, Volume 4, Issue 1, 2022, Pages 48-51
International Journal of Finance and Commerce International Journal of Finance and Commerce