Indian Journal of Science and Technology
Year: 2020, Volume: 13, Issue: 21, Pages: 2104-2110
Salar Hussain1,2∗, Imam-ud-Din Khoso1 , Fiza Qureshi 1
1 Institute of Business Administration, University of Sindh, Jamshoro, Tel.: +923342145560
2 Shaheed Benzair Bhutto University, Shaheed Benazirabad, Shaheed Benazirabad
Institute of Business Administration, University of Sindh, Jamshoro,
Shaheed Benzair Bhutto University, Shaheed Benazirabad, Shaheed Benazirabad
Email: [email protected]
Received Date:20 February 2020, Accepted Date:31 May 2020, Published Date:20 June 2020
Objectives: This study aims to investigate the impact of mergers and acquisitions related events on the shareholders' wealth in Telecom sector of Pakistan. Statistical analysis: Event study methodology has been used to achieve this objective, in which, the short term and long term performance of firms are measured. For short term performance, Abnormal Returns (AR) and Cumulative Abnormal Returns (CAR) are measured while to determine long term performance, Buy-and-Hold Abnormal Returns (BHAR) are measured. Findings: The results revealed that the occurrence of these events has negatively affected the shareholders' wealth and the financial market did not respond to these events in the telecom sector of Pakistan. Application: The study suggests that the telecom sector should choose different strategies to gain market share, to increase revenues, to gain a competitive edge and to diversify risk.
Keywords: Mergers; acquisitions; event study; abnormal returns; cumulative abnormal returns; buy-and-hold abnormal returns
© 2020 Hussain, Khoso, Qureshi. This is an open access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
Published By Indian Society for Education and Environment (iSee)
Subscribe now for latest articles and news.