Impact Of Mergers On Corporate Performance: A Sample Study Of Indian Textile Industry
AbstractFor several years large number of studies has been conducted to gauge the impact of mergers and acquisitions activity on the corporate performance. The results of these studies have been found contradictory. When tested on the 13 sample firms from Indian Textile industry that have experienced merger from 2001 to 2008 we found that there has been significant deterioration in the profitability position of these companies in the post-merger period. Finally, on applying the 49 days event window it is observed that the shareholders of acquirer firm has witnessed a falling cumulative average abnormal return around the merger announcement period, thus indicating that even the stock market has not responded favourably to these companies’ merger decisions.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Spiru Haret University, Faculty of Accounting and Financial Management Constanta in its journal Journal of Academic Research in Economics.
Volume (Year): 4 (2012)
Issue (Month): 3 (December) ()
Contact details of provider:
Web page: http://www2.spiruharet.ro/facultati/facultate.php?id=9
More information through EDIRC
Impact of mergers; Event study; AAR; CAAR; Ratio analysis; Indian textile industry mergers.;
Find related papers by JEL classification:
- G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
- G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
- G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
- L67 - Industrial Organization - - Industry Studies: Manufacturing - - - Other Consumer Nondurables
You can help add them by filling out this form.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Claudiu Chiru).
If references are entirely missing, you can add them using this form.