Impact Of Mode Of Payment And Insider Ownership On Target And Acquirer's Announcement Returns In India

This paper examines the effect of mode of financing employed in mergers and acquisitions on the announcement period returns of the acquiring and the target companies' shareholders in India. This paper examines the effect of mode of financing employed in mergers and acquisitions on the announcement period returns of the acquiring and the target companies' shareholders in India. To discern the probable reasons for the positive value being created in within-group stock offers especially for the acquiring companies' shareholders, the second section analyses the interaction between the announcement returns of the acquiring and the target companies engaged in stock offers and insiders'/promoters' ownership level.