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Indian economic-policy reforms, bank mergers, and lawful proposals: The ex-ante and ex-post ‘lookup’

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  • Reddy, Kotapati Srinivasa
  • Nangia, Vinay Kumar
  • Agrawal, Rajat

Abstract

Because of globalization and liberalization of the world-economy policy reforms, emerging economies have been gained popularity in academic research, especially the economics and finance areas. Indeed, India is next to China in Asian emerging markets. As of economic-policy reforms implemented in 1991, a number of sectors are being developed and restructured via mergers and acquisitions (M&As) particularly the banking sector. In this paper, we discuss India's economic-policy and financial reforms, M&As market during 2006–2010, and other policy-related aspects. In this setting, we investigate the Axis Bank–Enam Securities investment banking merger occurred in 2010. To do so, we perform ex-ante analysis by using the event study method, and offer lawful proposals to the ex-post for financial development, economic growth, and banking sector as well. We then draw fruitful conclusions through triangular linkage between the select case, post-deregulation guidelines and the current investment banking trends.

Suggested Citation

  • Reddy, Kotapati Srinivasa & Nangia, Vinay Kumar & Agrawal, Rajat, 2013. "Indian economic-policy reforms, bank mergers, and lawful proposals: The ex-ante and ex-post ‘lookup’," Journal of Policy Modeling, Elsevier, vol. 35(4), pages 601-622.
    • Handle: RePEc:eee:jpolmo:v:35:y:2013:i:4:p:601-622
    DOI: 10.1016/j.jpolmod.2012.12.001
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    Cited by:

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    2. Reddy, Kotapati Srinivasa, 2015. "Revisiting and Reinforcing the Farmers Fox Theory: A Study (Test) of Three Cases in Cross-border Inbound Acquisitions," MPRA Paper 63561, University Library of Munich, Germany, revised 2015.
    3. 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.
    4. Reddy, Kotapati Srinivasa, 2016. "Institutional Voids and Tax litigation in Emerging Economies: The verdict of Vodafone cross-border acquisition of Hutchison," MPRA Paper 74264, University Library of Munich, Germany, revised 2016.
    5. Reddy, Kotapati Srinivasa & Nangia, Vinay Kumar & Agrawal, Rajat, 2014. "The 2007-2008 global financial crisis, and cross-border mergers and acquisitions: A 26-nation exploratory study," MPRA Paper 60148, University Library of Munich, Germany.
    6. Reddy, Kotapati Srinivasa, 2015. "The impact of the global financial crisis on border-crossing mergers and acquisitions: A continental/industry analysis," MPRA Paper 63563, University Library of Munich, Germany, revised 2015.
    7. Wil Martens & Prem Yapa & Maryam Safari, 2021. "Earnings Management in Frontier Market: Do Institutional Settings Matter?," Economies, MDPI, vol. 9(1), pages 1-19, February.
    8. Bharathkumar, Sai Ranjani & Gupta, Santanu, 2020. "Simplex representation of insurance performance analysis," Journal of Policy Modeling, Elsevier, vol. 42(2), pages 419-436.
    9. Narendar Rao & K. Reddy, 2015. "The impact of the global financial crisis on cross-border mergers and acquisitions: a continental and industry analysis," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 5(2), pages 309-341, December.
    10. SK, Shanthi & Nangia, Vinay Kumar & Sircar, Sanjoy & Reddy, Kotapati Srinivasa, 2015. "Banking and Financial Regulation in Emerging Markets," MPRA Paper 74289, University Library of Munich, Germany, revised 2015.
    11. Reddy, K. Srinivasa, 2011. "The aftermarket pricing performance of initial public offers: Insights from India," MPRA Paper 62885, University Library of Munich, Germany, revised 2013.
    12. Reddy, Kotapati Srinivasa, 2010. "Makeup behind the Mirror; Going beyond Delisting? – A Case of NIRMA," MPRA Paper 74291, University Library of Munich, Germany, revised 2016.
    13. Reddy, Kotapati Srinivasa, 2015. "Macroeconomic Change, and Cross-border Mergers and Acquisitions: The Indian Experience, 1991-2010," MPRA Paper 63562, University Library of Munich, Germany, revised 2015.
    14. Reddy, Kotapati Srinivasa, 2016. "Turnaround or Contract Merger: A conceptual model to protect sick and government companies," MPRA Paper 74263, University Library of Munich, Germany, revised 2016.
    15. Kotapati Srinivasa Reddy & Vinay Kumar Nangia & Rajat Agrawal, 2014. "The 2007–2008 Global Financial Crisis, and Cross-border Mergers and Acquisitions," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 6(3), pages 257-281, September.

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    More about this item

    Keywords

    Mergers and acquisitions; Emerging economies; Indian economy; Economic policy reforms; Investment banking; Bank mergers; Ex-ante and ex-post lookup;
    All these keywords.

    JEL classification:

    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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