This is to unfold another approach to Event Study Methodology(ESM) and even a light on Post-Event Window &concept of Cumulative Average Residuals (CARs). Econometrics of Event Studies has been used.
The Null Hypothesis can not be accepted as the evidence supports the benefits accruing to shareholders, particularly in short and very short Event Windows and even, towards the end, though high returns are subsiding, but, still, holds market sentiments on a positive side.
Though, results lack generalizability as the sample was not comprehensive, still, it is a good attempt as a basis forfuture studies as has advanced on a sound work and tried to throw light on some new facets.
As per understanding, study can be very eminent for various spheres like Banking companies. Regulators Reserve Bank of India (RBI )&Securities and Exchange Board of India ( SEBI), Policy makers and area Experts as it touches the stock phenomena incase of banks mergers, paving way for a sound calculation of actual benefits to stockholders of these banks as well a check on malpractices like insider trading.