Mergers and Corporate Performance in India an Empirical Study
A STUDY OF CORPORATE TAKEOVERS IN
INDIA
Abstract of Ph. D Thesis to be submitted to
THE UNIVERSITY OF DELHI
For the Degree of
DOCTOR OF PHILOSOPHY
By
Ms. Surjit Kaur
Lecturer in Commerce
Sri Guru Gobind Singh College of Commerce
Under the Supervision of
Professor O. P. Gupta
Department of Financial Studies
University of Delhi, South Campus
Benito Juarez Road, New Delhi-110021
2002
1
The Indian economy has undergone a major transformation and structural change during the past decade or so as a result of economic reforms introduced by the
Government of India since 1991 in the wake of policy of economic liberalization and globalization. In this liberalized era, size and "core competence" have become the focus of every business enterprise. Naturally, this requires companies to grow and expand in businesses that they understand well. Thus, leading corporate houses have undertaken a massive restructuring exercise to create a formidable presence in their core areas of interest. Mergers and acquisitions (M&As) is one of the most effective methods of corporate restructuring and has, therefore, become an integral part of the long-term business strategy of corporates. The M&A activity has its impact on various diverse groups such as corporate management, shareholders and investors, investment bankers, regulators, stock markets, customers, government and taxation authorities, and society at large. Therefore, it is not surprising that it has received considerable attention at the hands of researchers world over.
A number of studies have been carried out abroad especially in the developed capital markets of Europe, Australia, Hong Kong, and US. These studies have largely focused on different aspects, viz., (a) the rationale of M&As, (b) allocational and redistributional role of M&As, (c) effect of takeovers on shareholders’ wealth, (d) corporate financial performance, etc. Some studies have also been carried out to predict corporate
INDIA
Abstract of Ph. D Thesis to be submitted to
THE UNIVERSITY OF DELHI
For the Degree of
DOCTOR OF PHILOSOPHY
By
Ms. Surjit Kaur
Lecturer in Commerce
Sri Guru Gobind Singh College of Commerce
Under the Supervision of
Professor O. P. Gupta
Department of Financial Studies
University of Delhi, South Campus
Benito Juarez Road, New Delhi-110021
2002
1
The Indian economy has undergone a major transformation and structural change during the past decade or so as a result of economic reforms introduced by the
Government of India since 1991 in the wake of policy of economic liberalization and globalization. In this liberalized era, size and "core competence" have become the focus of every business enterprise. Naturally, this requires companies to grow and expand in businesses that they understand well. Thus, leading corporate houses have undertaken a massive restructuring exercise to create a formidable presence in their core areas of interest. Mergers and acquisitions (M&As) is one of the most effective methods of corporate restructuring and has, therefore, become an integral part of the long-term business strategy of corporates. The M&A activity has its impact on various diverse groups such as corporate management, shareholders and investors, investment bankers, regulators, stock markets, customers, government and taxation authorities, and society at large. Therefore, it is not surprising that it has received considerable attention at the hands of researchers world over.
A number of studies have been carried out abroad especially in the developed capital markets of Europe, Australia, Hong Kong, and US. These studies have largely focused on different aspects, viz., (a) the rationale of M&As, (b) allocational and redistributional role of M&As, (c) effect of takeovers on shareholders’ wealth, (d) corporate financial performance, etc. Some studies have also been carried out to predict corporate