Vol. 2, Issue 4 (2016)
An empirical analysis of the stock price behaviour on merger and acquisition with special reference to merger involving Kotak Mahindra Bank with ING Vysya Bank
Author(s): K Ramya, G Vanithamani
Abstract: Indian banking sector plays vital role in economic development of the nation. It has tremendous growth in recent years. Public sector banks occupies predominant role in the Industry so Private sector banks in order to withstand in the competitive market adopt various strategies, one such strategy is merger and acquisition. The term Merger and Acquisition means consolidation of two companies or more than that. Kotak Mahindra Bank has announced its merger with ING Vysya Bank. The study attempted to analyse stock price behaviour of the concern with special occasion of event merger and acquisition and the study found that merger doesn’t show any benefit over a short period of time as there exist uniformity in abnormal return in the pre and post merger period. Tools used for the study are Event study methodology, Market model, t-test and Mean.