A Note On The Effect Of M&A Announcements On Stock Price Behavior And Financial Performance Changes: The Case Of Arab Malaysian Bank Berhad And Hong Leong Bank Berhad

This study examines the effect of M&A completion announcements on the stock price behavior for two anchor banks in Malaysia: Hong Leong Bank Berhad and Arab Malaysian Bank Berhad. The analysis uses the event study technique, the Nave Model, a model that is based on Market Model with constrained...

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Bibliographic Details
Published in:The international business & economics research journal 2011-02, Vol.7 (9)
Main Authors: McGowan, Jr, Carl B., Sulong, Zunaidah
Format: Article
Language:English
Online Access:Get full text
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Summary:This study examines the effect of M&A completion announcements on the stock price behavior for two anchor banks in Malaysia: Hong Leong Bank Berhad and Arab Malaysian Bank Berhad. The analysis uses the event study technique, the Nave Model, a model that is based on Market Model with constrained ? = 0 and ? = 1 to compute the abnormal returns surrounding the M&A completion announcement date and to evaluate the effect of M&A completion announcement on the banks return. The results from event study show that the M&A completion announcements are treated as positive information by the market.
ISSN:1535-0754
2157-9393
DOI:10.19030/iber.v7i9.3289