Indian Mergers and Acquisitions Boost Wealth for Shareholders on Announcement Day
The article looks at how mergers and acquisitions in India between 2003-2008 affect stock prices. They studied 623 deals and found that when Indian companies acquire others, their stock prices go up by 2% on average in the short term. This suggests that the market sees these deals as making the companies more efficient. However, there is a lot of variability in how much the stock prices change, showing that not all deals have the same impact.