IMPACT OF MERGERS AND AMALGAMATION ON THE PERFORMANCE OF INDIAN COMPANIES

Mahesh Kumar Tambi
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Mahesh Kumar Tambi: IIMT, Hyderabad India

Finance from University Library of Munich, Germany

Abstract: This paper is an attempt to evaluate the impact of Mergers on the performance of the companies. Theoretically it is assumed that Mergers improves the performance of the company due to increased market power, Synergy impact and various other qualitative and quantitative factors. Although the various studies done in the past showed totally opposite results. These studies were done mostly in the US and other European countries. I evaluate the impact of Mergers on Indian companies through a database of 40 Companies selected from CMIE’s PROWESS, using paired t- test for mean difference for four parameters; Total performance improvement, Economies of scale, Operating Synergy and Financial Synergy. My study shows that Indian companies are no different than the companies in other part of the world and mergers were failed to contribute positively in the performance improvement.

Keywords: Mergers; Amalgamation; Acquisition; Horizontal Mergers; Vertical Mergers; Backward Integration; Foreword Integration; Circular Mergers; Conglomerate Mergers; Congeneric Mergers (search for similar items in EconPapers)
JEL-codes: G (search for similar items in EconPapers)
Pages: 14 pages
Date: 2005-06-08
New Economics Papers: this item is included in nep-acc, nep-com and nep-fmk
Note: Type of Document - pdf; pages: 14
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:wpa:wuwpfi:0506007

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