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International Journal in Management & Social Science
Year : 2014, Volume : 2, Issue : 1
First page : ( 85) Last page : ( 105)
Online ISSN : 2321-1784.

Event study of Tata's global growth through acquisition: Tata's takeover of Corus

Garg Manika*, Singal Arnav**, Gupta Anubhav**

*Assistant Professor, S.D Institute of Management & Technology, Jagadhri, Haryana

**Student, MBA, S.D Institute of Management & Technology, Jagadhri, Haryana

Online published on 7 June, 2014.

Abstract

The event study methodology has been used to estimate cumulative average abnormal returns (CAR) in an 80 day window period (CAR) in a 1-day, 2-day, 5-day, 10-day, 15-day, 20-day, and 80-day window period of Declaration of Tata takeover of Corus. The study aims at exploring the implications of the acquisition for the shareholders. The event study methodology has been used to estimate Cumulative Abnormal Returns (CAR) for a 80 day window period. Market Model Method (single-factor model) has been used. This procedure has been applied on the Tata & Corus acquisition event so as to study the impact of this event on the stock prices. The study endeavors to find the Cumulative Abnormal Return (CAR) of Tata steel & Corus.

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Keywords

CAR, acquisition, Market model method.

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