Economics at your fingertips  

Acquisition pricing in India during 1995–2011: Have Indian acquirers really beaten the odds?

Pradip Banerjee, Prithviraj Banerjee, Soumen De, Jan Jindra and Jayanta Mukhopadhyay

Journal of Banking & Finance, 2014, vol. 38, issue C, 14-30

Abstract: We examine the announcement returns of acquisitions made by Indian firms during the period 1995–2011. Our results confirm that the announcement returns to Indian acquirers are on average significantly positive. However, we are first to document that the announcement returns to Indian acquirers decline over time and become, on average, negative towards the end of our sample period. We analyze several hypotheses for such decline and find that the decline, while robust to a variety of explanations, is related to the intensity of the market for corporate control in India. Finally, the post-acquisition long-run returns for acquirers are, on average, consistently positive, do not change over time, and are unrelated to the initial market reaction to the acquisition announcement.

Keywords: Mergers and acquisitions; India; Corporate governance; Market for corporate control (search for similar items in EconPapers)
JEL-codes: F30 G30 G32 G34 G38 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

Journal of Banking & Finance is currently edited by Ike Mathur

More articles in Journal of Banking & Finance from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

Page updated 2019-04-13
Handle: RePEc:eee:jbfina:v:38:y:2014:i:c:p:14-30