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.