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100			_aRanju, P. K. _934129
245			_aSpillover Effect of M&A Announcements on Acquiring Firms’ Rivals: Evidence from India
300			_a692–707 p.
520			_aMotivated by the paucity of empirical studies examining the impact of mergers and acquisition (M&A) announcements on the acquiring firms’ rivals, we made an attempt to uncover the spillover effect of M&A announcements on the stock market reaction of acquiring firms’ rivals. Using a sample of 97 M&A announcements during the period from April 2014 to March 2016 and 179 rivals of acquirers, we found that acquiring firms and acquiring firms’ rivals react positively to the announcement of M&As. The results of the disaggregated analysis suggest that horizontal M&As do not result in a significant positive reaction of acquiring firms’ rivals. Therefore, this study does not support the collusion theory. We also found negative (insignificant) stock market reaction of acquiring firms’ rivals upon the announcement of cross-border M&As. However, overall results show that acquiring firms’ rivals react positively to the announcement of M&As. This significant positive reaction of acquiring firms’ rivals goes in line with signalling theory. Thus, we argue that M&A announcements signal information regarding the growth potential of rivals, which results in positive stock market reaction of acquiring firms’ rivals upon the M&A announcements.
653			_aM&As,
653			_aEvent study methodology
653			_aSignalling theory
653			_aacquirers, rivals,
653			_aSpillover
653			_aStock market reaction
700			_aMallikarjunappa, T. _934130
773	0		_029349 _975297 _aBANIK, ARINDAM _dNEW DELHI SAGE PUBLISHING PVT. LTD. _o55510583 _tGLOBAL BUSINESS REVIEW _x0972-1509
942			_2ddc _cJA-ARTICLE