Abstract
This study investigates the short-term market response associated with the announcement of seven merger and acquisition deals in the banking sector of Pakistan during the period 2003 to 2008 using the event study methodology. The results indicate statistically significant investor reactions around the merger announcements. For individual target and bidder banks, the cumulative abnormal returns (CARs) range from significant positive to significant negative. The combined mean CAR for the bidder group is significant positive and for target group, the mean CAR is significant negative. The mean CAR for the combined banks in the domestic mergers is also positive but is largely impacted by the substantial positive CAR of one bidder bank.
Keywords
Merger & Acquisition, Emerging market, Banking, Corporate finance
DOI
https://doi.org/10.54784/1990-6587.1269
Journal of Economic Literature Subject Codes
G34, G21
Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.
Recommended Citation
Tauseef, S., & Nishat, M. (2014). Wealth effect of mergers & acquisitions in emerging market: A case of Pakistan’s banking sector. Business Review, 9(2), 24-39. Retrieved from https://doi.org/10.54784/1990-6587.1269
Submitted
March 29, 2021
Published
July 01, 2014
Included in
Business Analytics Commons, Business and Corporate Communications Commons, Corporate Finance Commons, Finance and Financial Management Commons
Publication Stage
Published
