IMPACT OF MERGERS ON CORPORATE PERFORMANCE: A SAMPLE STUDY OF INDIAN TEXTILE INDUSTRY

Amarjit Saini and Ravi Singla

Journal of Academic Research in Economics, 2012, vol. 4, issue 3 (December), 284-292

Abstract: For several years large number of studies has been conducted to gauge the impact of mergers and acquisitions activity on the corporate performance. The results of these studies have been found contradictory. When tested on the 13 sample firms from Indian Textile industry that have experienced merger from 2001 to 2008 we found that there has been significant deterioration in the profitability position of these companies in the post-merger period. Finally, on applying the 49 days event window it is observed that the shareholders of acquirer firm has witnessed a falling cumulative average abnormal return around the merger announcement period, thus indicating that even the stock market has not responded favourably to these companies merger decisions.

Keywords: Impact of mergers; Event study; AAR; CAAR; Ratio analysis; Indian textile industry mergers. (search for similar items in EconPapers)
JEL-codes: G12 G14 G34 L67 (search for similar items in EconPapers)
Date: 2012
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.jare-sh.com/downloads/abstract_dec_2012/singla.pdf (application/pdf)

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:shc:jaresh:v:4:y:2012:i:3:p:284-292

Access Statistics for this article

Journal of Academic Research in Economics is currently edited by Claudiu Chiru

More articles in Journal of Academic Research in Economics from Spiru Haret University, Faculty of Accounting and Financial Management Constanta Contact information at EDIRC.
Bibliographic data for series maintained by Claudiu Chiru ().