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The Behavioral Aspect Of Mergers And Acquisitions: A Case Study From India

Author

Listed:
  • Md Sahanur Islam
  • Partha Pratim Sengupta
  • Sukanya Ghosh
  • Samir Chandra Basu

Abstract

In the turbulent global economy, mergers and acquisitions of industries takes place to protect Indian businesses. Such mergers and acquisitions are taking place in Heavy Industries and in major service industries. This paper investigates the context, process and consequences of the merger of State Bank of Indore with the largest nationalized banking firm, State Bank of India. Due to inadequate emphasis on the human resource aspect, employee resistance acted as impediment to merger of these two banks and delayed the process. This paper develops a model, which can help the industry achieve smooth changes without employee resistance.

Suggested Citation

  • Md Sahanur Islam & Partha Pratim Sengupta & Sukanya Ghosh & Samir Chandra Basu, 2012. "The Behavioral Aspect Of Mergers And Acquisitions: A Case Study From India," Global Journal of Business Research, The Institute for Business and Finance Research, vol. 6(3), pages 103-113.
    • Handle: RePEc:ibf:gjbres:v:6:y:2012:i:3:p:103-113
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    References listed on IDEAS

    as
    1. Maquieira, Carlos P. & Megginson, William L. & Nail, Lance, 1998. "Wealth creation versus wealth redistributions in pure stock-for-stock mergers," Journal of Financial Economics, Elsevier, vol. 48(1), pages 3-33, April.
    2. Cornett, Marcia Millon & Tehranian, Hassan, 1992. "Changes in corporate performance associated with bank acquisitions," Journal of Financial Economics, Elsevier, vol. 31(2), pages 211-234, April.
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    More about this item

    Keywords

    Turbulent global economy; Mergers and Acquisitions; Impediment to merger;
    All these keywords.

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • C38 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Classification Methdos; Cluster Analysis; Principal Components; Factor Analysis

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