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Does ownership concentration improve M&A outcomes in emerging markets?


  • Bhaumik, Sumon Kumar
  • Selarka, Ekta


Using firm level data from India, we examine the impact of ownership concentration on post-M&A performance of firms. Our analysis has implications for both the M&A literature, which emphasises the role of agency conflict between managers and owners of widely held companies as a key reason for M&A failures, and the corporate governance literature, especially in the context of emerging market economies. A cautious interpretation of our results suggests that while ownership concentration may reduce the manager–owner agency conflict, it may nevertheless precipitate other forms of agency conflict such that ownership concentration may not necessarily improve post-M&A performance. In particular, our results have implications for the literature on the agency conflict between large (or majority) shareholders and small (or minority) shareholders of a company, especially in contexts such as emerging market economies where corporate governance quality is weak.

Suggested Citation

  • Bhaumik, Sumon Kumar & Selarka, Ekta, 2012. "Does ownership concentration improve M&A outcomes in emerging markets?," Journal of Corporate Finance, Elsevier, vol. 18(4), pages 717-726.
  • Handle: RePEc:eee:corfin:v:18:y:2012:i:4:p:717-726 DOI: 10.1016/j.jcorpfin.2012.04.001

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    References listed on IDEAS

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    Cited by:

    1. Pham, Nga & Oh, K.B. & Pech, Richard, 2015. "Mergers and acquisitions: CEO duality, operating performance and stock returns in Vietnam," Pacific-Basin Finance Journal, Elsevier, vol. 35(PA), pages 298-316.
    2. Reddy, K. Srinivasa, 2015. "Institutional Laws, and Mergers and Acquisitions in India: A Review/Recommendation," MPRA Paper 63410, University Library of Munich, Germany, revised 2015.
    3. repec:eee:jbrese:v:81:y:2017:i:c:p:21-30 is not listed on IDEAS
    4. Temouri, Yama & Driffield, Nigel & Bhaumik, Sumon Kumar, 2016. "A strategic perspective of cross-listing by emerging market firms: Evidence from Indonesia, Mexico, Poland and South Africa," Journal of International Management, Elsevier, vol. 22(3), pages 265-279.

    More about this item


    Mergers and acquisitions; Corporate governance; Firm performance; Emerging markets; India;

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance


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