Title: Cross border mergers and acquisitions: post acquisition performance of Indian corporate

Authors: Geeta Rani Duppati; Stuart Locke

Addresses: Department of Finance, Waikato Management School, University of Waikato, New Zealand ' Department of Finance, Waikato Management School, University of Waikato, New Zealand

Abstract: This study examines the stock market performance and operating performance of Indian companies involved in cross-border mergers and acquisitions. Encouraged by financial reforms, there has been an increase in large scale mergers and acquisitions by Indian corporates from 2000 onwards. Thirty mergers/acquisitions, occurring between 2000 and 2012, are examined, using an event study method to test the announcement effect of the M&A in the short-term and the longer-term post-acquisition market performance is also analysed. Event studies indicate favourable economic outcomes for the majority of these mergers and acquisitions in the short run surrounding the event window, although some companies experienced a temporary decline in share price. All had favourable outcomes in the longer-run period. The post-acquisition effects are statistically significant.

Keywords: announcement effects; emerging markets; cross border M&A; mergers and acquisitions; post-acquisition effects; event studies; stock market performance; operating performance; share prices.

DOI: 10.1504/IJBCG.2015.075274

International Journal of Business Competition and Growth, 2015 Vol.4 No.3/4, pp.135 - 151

Received: 18 Jun 2015
Accepted: 09 Jul 2015
Published online: 09 Mar 2016 *

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