A Study on the Impact of Pre and Post Bank Merger on Stock Price Movements of Bank of Baroda

Abstract

Merger & Acquisition is an arrangement that brings two or more company together to gain an competitive advantage in the market. Banking sector is the financial pillar of the economy in India it plays a vital role in the functioning of the economy. This research has been carried out on merger and acquisition of Banking companies and their effect of the share prices of the acquiring company. Secondary data was used i.e. the share prices of Bank of Baroda, Vijaya Bank and Dena Bank of last 6 months pre and post-merger of the Bank. Paired Sample T test is used to analyse the data in this study, and the result obtain from the study shows that there is significant difference is the share price of the bank before and after the merger. It means there was significant impact of mergers and acquisition on share price of respective banks.

Key Words:Mergers, Acquisition, Banking performance, Share Prices, Stock Exchanges