How have Mergers and Acquisitions Affected Financial Performance of Firms in Indian Manufacturing Sector?
Journal Title: Eurasian Journal of Business and Economics - Year 2019, Vol 12, Issue 23
Abstract
The paper examines how mergers and acquisitions (M&As) in India after initiation of reforms in 1991 have affected firms’ financial performance. Using panel data and applying the method of difference GMM, it is found that neither market concentration nor M&As affected firms’ financial performance because of the multidirectional structure-conduct-performance relationships. Instead, interindustry differences in performance have been caused by capital intensity, efforts relating to marketing and distribution, and foreign technology. The findings suggest for a relook at the competition policies and laws, international trade, investment and technology development as they influence financial performance through market structure along with firms’ business strategies, efficiency and competitiveness.
Authors and Affiliations
Pulak MISHRA
Keywords
Related Articles
- EP ID EP600923
- DOI 10.17015/ejbe.2019.023.05
- Views 63
- Downloads 0
Positive Analysis on Japanese Individual Investors’ Ratio of Risk Asset Holding
In this article, we investigate the determinants of risk asset holding ratio using micro data collected from a Web-based survey. The findings of the current study indicate that, (1) factors such as subjective excess retu...
Macroeconomic Adjustment in Armenia: The Role of External Factors
This paper develops a small macroeconomic model of the Armenian economy. After setting up the model and its estimation, a number of macroeconomic scenarios is analyzed in the form of out-of-sample simulations. We analyze...
Export-Orientation of Foreign Manufacturing Affiliates in India: Factors, Tendencies and Implications
This paper addresses an important development issue in the literature of international production, namely, what motivates market-seeking foreign direct investment (FDI) to undertake export activities. It is well recogniz...
Determinants of Mergers and Acquisitions in Indian Pharmaceutical Industry
M&A turned out to be significant form of corporate restructuring in post globalization period in Indian industries. The phenomenon is considered to be the most important strategy for gaining competitive advantage for fir...
Foreign Direct Investment as a Determining Factor in Turkey's Export Performance
Export growth in Turkey has been much faster than GDP growth over the past few decades. Although in the last several years Turkey has been experiencing a constant growth of both exports and foreign direct investments as...