Reaction of stock prices of selected sample to the m&a announcement: Evidence from nse of India

This paper examines the impact of merger announcements of Indian pharmaceutical firms listed in National Stock Exchange (NSE) of India between 2008 and 2010 by using event study methodology. The study uses the OLS market model to find the abnormal return with the help daily stock returns and daily market index returns. This study used different windows of cumulative average abnormal returns (CAAR) like (−1,1), (−3,3), (−5,5), (−10,10) and (−15,15) to test the Null hypothesis. The whole analysis is done with the help of MS Excel. They study found that there is no statistically significant impact of merger and acquisition on the stock price of selected sample during the selected windows.