The event study methodology has been used to estimate cumulative average abnormal returns (CAR) in a 90 day window period (CAR) in a 1-day, 2-day, 5-day, 10-day, 15-day, 20-day, and 90-day window period of Declaration of Separation on stock prices of Hero Motor Corp. The study aims at exploring the implications of the separation for the shareholders. The event study methodology has been used to estimate Cumulative Abnormal Returns (CAR) for a 90 day window period. Market Model Method (single- factor model) has been used. This procedure has been applied on the Hero&Honda separation event so as to study the impact of this event on the stock prices. The study endeavours to find the Cumulative Abnormal Return (CAR) of Hero Moto Corp and analyzes the after effects of Hero&Honda Separation.

1. Agrawal A. and Jeffrey J.F., (1999). 'The Post-merger Performance Puzzle.' <a href=http://ssrn.com/abstract=199671 target="_blank">http://ssrn.com/abstract=199671</a> accessed on September 12, 2011.
2. Anand M. and Singh J. (2008). “Impact of Merger Announcements on Shareholders' Wealth: Evidence from Indian Private Sector Banks.” Vikalpa: Journal For Decision Makers, Vol. 33, Issue 1, pp. 35-54.
3. Ashton, J.K., and Pham, K., (2007). 'Efficiency and Price Effects of Horizontal Bank Mergers.' <a href=http://ssrn.com/abstract=997995 target="_blank">http://ssrn.com/abstract=997995</a> accessed on September 12, 2011.
4. Brown, S. J, and Warner, J. B., (1980). “Measuring Security Price Performance.” Journal of Financial Economics, Vol. 80, pp. 205-258.
5. Brown, S. J. and Warner, J. B., (1985). “Using Daily Stock Returns: The Case of Event Studies.” Journal of Financial Economics, Vol. 14, pp. 3-31.
6. Das, S., Pattanaya, J. K., and Pathak, P., (2008). “The Effect of Quarterly Earnings Announcements on Sensex: A Case with Clustering of Events.” The ICFAI University Journal of Accounting Research, Vol. 7, Issue 4, pp. 64- 78.
7. Dexter (2010). 'Hero Honda Part Ways After 26 years.' <a href=http://techcottage.blogspot.com/2010/12/hero-honda-part-ways-after-26-years.html target="_blank">http://techcottage.blogspot.com/2010/12/hero-honda-part-ways-after-26-years.html</a> accessed on September 20, 2011.
8. Dubcovsky G. and Martinez F.V. (2003). “The Kalman Filter in the Event Study Methodology.” Revista Mexicana de Economiay Finanzas, Vol. 2, Issue 1, pp. 81-93.
9. Fama E. F., Fisher L., Jensen M. C. and Roll, R., (1969). “The Adjustment of Stock Prices to New Information.” International Economic Review, Vol. 10, Issue 1, pp. 1-21.
10. IB Times Staff Reporter (2010). 'Hero, Honda Part Ways After 26 years.' <a href=http://m.ibtimes.com/hero-honda-part-ways-after-26-years-93238.html target="_blank">http://m.ibtimes.com/hero-honda-part-ways-after-26-years-93238.html</a> accessed on August 20, 2011.
11. Kane, E.J., (2000). 'Incentives for Banking Megamergers: What Motives Might Regulators Infer from Event- Study Evidence?', <a href=http://ssrn.com/abstract=221708 target="_blank">http://ssrn.com/abstract=221708</a> accessed on March 03, 2009.
12. Kothari, S.P., and Warner, J. B., (2004). 'The Econometrics of Event Studies.' <a href=http://ssrn.com/abstract=608601 target="_blank">http://ssrn.com/abstract=608601</a> accessed on February 02, 2009.
13. Krishna, V., (2010) 'The Life after Separation.' <a href=http://businessworldindia.com/bw/2010_10_22_The_Life_After_Separation.html target="_blank">http://businessworldindia.com/bw/2010_10_22_The_Life_After_Separation.html</a>. accessed on September 10, 2011.
14. Krivin D., Patton R., Erica R. and Tabak D., (2003). 'Determination Of The Appropriate Event Window Length In Individual Stock Event Studies.' <a href=http://ssrn.com/abstract=466161 target="_blank">http://ssrn.com/abstract=466161</a> accessed on September 15, 2011.
15. Kumar, A., and Chauhan, C., (2010). 'Honda In Talks To Sell Stake To Munjals.' <a href=http://articles.economictimes.indiatimes.com/2010-09-01/news/27626308_1_hero-honda-motors-hero-group-hero-stake target="_blank">http://articles.economictimes.indiatimes.com/2010-09-01/news/27626308_1_hero-honda-motors-hero-group-hero-stake</a>. accessed on September 08, 2011.
16. Lane V. and Jacobson R. (1995). "Stock Market Reactions To Brand Extension Announcements: The Effects Of Brand Attitude And Familiarity." Journal of Marketing, Vol. 59, pp. 63-77.
17. Nagm Fouad, and Kautz, K., (2007). 'The Market Value Impact of IT Investment Announcements- An Event Study.' Journal of Information Technology Theory and Application (JITTA), Volume 9 , Issue 3, Article 5.
18. NDTV correspondent . 'Hero, Honda Separation To Be Announced Today.' <a href=http://profit.ndtv.com/news/show/hero-honda-separation-to-be-announced-today-129694 target="_blank">http://profit.ndtv.com/news/show/hero-honda-separation-to-be-announced-today-129694</a>. accessed on August 15, 2011.
19. Palmucci F., and Caruso A., (2008). 'Measuring Value Creation in Bank Mergers and Acquisitions.' <a href=http://ssrn.com/abstract=676522 target="_blank">http://ssrn.com/abstract=676522</a> accessed on February 10, 2009.
20. Sawyer, R.K., and Gygax A.F. (2001). 'How Eventful are Event Studies?' <a href=http://ssrn.com/abstract=260697 target="_blank">http://ssrn.com/abstract=260697</a> accessed on September 05, 2011.
21. Verma, R., (2011). 'Riding Solo.' Indian Business Law Journal, April 2011, <a href=http://www.nishithdesai.com/nda-news/IBLJ%20April%202011.pdf target="_blank">http://www.nishithdesai.com/nda-news/IBLJ%20April%202011.pdf</a> accessed on September 07, 2011.