Structural Risk Modelling- Indian Mergers & Acquisitions

Keshab Bhattarai, Asha Prasuna and SNV Siva Kumar

MPRA Paper from University Library of Munich, Germany

Abstract: Primary survey data of Indian M&A transactions were used to test the hypotheses on latent risk factors. A structural equation model (SEM) model was estimated to assess the composite risk factors considering financial, non-financial, and sustainability risks. The results reveal that reforms in management and human resources can control up to 23 percent of overall risk. Ensuring appropriate technology will take away another 22 percent risk. Macroeconomic stability can reduce risks of the firms by 12 percent. Then sustainability factors reduce risk by 11 percent and another 11 percent of risk can be controlled by a sound financial sector. Thus overall novelty of this research is to critically evaluate the existing framework and propose a holistic M&A risk assessment model that captures contemporary technical, management and HR, economic issues underlying challenges of business enterprises in India. The research gap in assessing sustainability M&A risks is an extended version of the existing M&A synergy gain theory.

Keywords: Rating and Rating Agencies; Financial Risk Management; Mergers & Acquisitions (search for similar items in EconPapers)
JEL-codes: G34 O53 (search for similar items in EconPapers)
Date: 2024-09-30, Revised 2025-01-02
New Economics Papers: this item is included in nep-rmg
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/123385/1/MPRA_paper_123385.pdf original version (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:pra:mprapa:123385

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().