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Impact of Corporate Governance Score on Abnormal Returns and Financial Performance

In: Mergers and Acquisitions

Author

Listed:
  • Neelam Rani

    (Indian Institute of Management Shillong)

  • Surendra Singh Yadav

    (Indian Institute of Technology Delhi)

  • Pramod Kumar Jain

    (Indian Institute of Technology Delhi)

Abstract

The present chapter provides the empirical evidence on relationship between corporate governance scoreCorporate governance score and M&A performance in Indian context. The role of corporate governanceCorporate Governance has been explored on the measurement of the announcement effectsAnnouncement Effects on the acquiring firms. The empiricalEmpirical findings indicate that companies with high corporate governance score have positive abnormal returns in the short-termShort-term , better financial performanceFinancial performance , and higher valuationsValuations post-M&A, while companies with lower corporate governance score have lower financial performance and lower valuations post-M&A.

Suggested Citation

  • Neelam Rani & Surendra Singh Yadav & Pramod Kumar Jain, 2016. "Impact of Corporate Governance Score on Abnormal Returns and Financial Performance," India Studies in Business and Economics, in: Mergers and Acquisitions, chapter 0, pages 169-182, Springer.
  • Handle: RePEc:spr:isbchp:978-981-10-2203-6_7
    DOI: 10.1007/978-981-10-2203-6_7
    as

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