Volume : VII, Issue : VII, July - 2017

Long Term Financial Performance of Acquiring Companies: Evidences from India

Dr. Rajeesh Viswanathan, Neethu. T. C

Abstract :

 Mergers and acquisitions have become priority for most of the organizations to enhance their market share  in today’s highly competitive scenario.  Organizations have been investing a large part of their revenue for this pursuit.  However, the impact of success in long term depends on series of factors.   This study focused on the mergers and acquisitions in India and analyzed the post merger performance of acquiring companies. The study have used data from 2002 to 2015 and compared the performance of companies which have completed acquisition before the financial crisis period, on the financial crisis periods and after the financial crisis period. The researcher selected deals which are completed between 2006 and 2011 and collected financial data up to four years before and after the deal. The study has used the Wilcoxon Ranked Test for analyzing the significant difference between the pre merger performance which have been measured by various financial ratios, and the post merger performance. It is found that acquisitions happened in the financial crisis have gained more than which have merged before the crisis and also after the crisis. The acquisitions after the financial crisis are showing worst performance than the rest two periods. 

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Article: Download PDF   DOI : 10.36106/ijar  

Cite This Article:

Dr. Rajeesh Viswanathan, Neethu. T. C, Long Term Financial Performance of Acquiring Companies: Evidences from India, INDIAN JOURNAL OF APPLIED RESEARCH : Volume‾7 | Issue‾7 | July‾2017

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