An Appraisal of Mergers and Acquisitions

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The study investigates the effects of mergers and acquisitions (M&As) on shareholder wealth and market risk, focusing on the TATA group from 2000 to 2015. It employs event study methodologies to analyze abnormal returns around M&A announcements. Findings reveal a predominance of negative cumulative abnormal returns for TATA, particularly post-announcement, indicating that while initial market reactions may appear positive, long-term effects often result in declines in shareholder value. The research supports the Managerial Hubris theory in the context of M&As.