Deal Size and Synergy Gains: A Case of Indian M&A

Anjala Kalsie and Neha Singh

Vikalpa: The Journal for Decision Makers, 2023, vol. 48, issue 4, 255-268

Abstract: The article aims to estimate the relationship between synergy gains and deal size of mergers & acquisitions for Indian firms by examining deals that took place between 2005 and 2015. The paper employs principal component analysis to create a composite variable representing operating and financial synergy, followed by instrument variable 2SLS regression to estimate the relationship. The results suggest that small dealsize transactions do considerably better than large deals. The magnitude of financial synergy increases with deal size . However, large companies suffer substantial operating synergistic erosion.

Keywords: Mergers and acquisitions; Synergy; Composite variable; Principal component analysis; Panel regression (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/02560909231216186 (text/html)

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: https://EconPapers.repec.org/RePEc:sae:vikjou:v:48:y:2023:i:4:p:255-268

DOI: 10.1177/02560909231216186

Access Statistics for this article

More articles in Vikalpa: The Journal for Decision Makers
Bibliographic data for series maintained by SAGE Publications ().