International Research journal of Management Science and Technology

  ISSN 2250 - 1959 (online) ISSN 2348 - 9367 (Print) New DOI : 10.32804/IRJMST

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IMPACT OF MERGER ANNOUNCEMENT ON THE SHARE PRICE OF MAHINDRA HOLIDAYS AND RESORTS INDIA LTD

    2 Author(s):  DR. RAVI SANKAR KUMMETA, DR. D. ROSE MARY

Vol -  8, Issue- 1 ,         Page(s) : 385 - 391  (2017 ) DOI : https://doi.org/10.32804/IRJMST

Abstract

The capital market is the major component of Indian financial system. In an efficient capital market stock price behaviour should follow Random Walk Hypothesis that future price movement should be not relate to past price movement. Under semi-strong form of capital market efficiency historical and publicly available information fully reflects the share price movement. Merger and acquisition is one of the corporate restructuring activities. Mergers and Acquisitions play an important role in the business expansion and diversification. Acquiring another company of same or unrelated business is an important internal event in the business decisions. Announcement of acquisition is in anticipation of positive impact on acquired security performance.

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