Tata Group Going Global
CHAPTER 1
RESEARCH METHODOLOGY
Research problem
• To analyze the effect of going global through merger and acquisition on investors and traders long term and short term earnings respectively • Impact on companies’ financials after acquisition or after being acquired • To find out enterprise value of the company by comparing it with the peer group and analyzing the value of the firm • To analyze the difference between prospected and actual returns in terms of % daily cumulative abnormal return of pre acquisition and post acquisition
Objective of the study
• To compare the closing price of 5 companies before and after post acquisition • To compare the key financial ratios of 5 companies before and after acquisition • To do valuation of one or two companies with the method enterprise value and compare the value with peer group and analyze in detail • To analyze detailed case study of 5 companies of Tata Group • To analyze percentage cumulative abnormal return of one month both before acquisition and after acquisition
Research Design
• Exploratory Research
Scope of the study
• To do a relative analysis between BSE Sensex and the share price of the TATA Group of companies • Limited to 5 companies of TATA • Limited to daily prices of stocks both before and after one month of acquisition
Data Sources
• Secondary Data ➢ Prowess software ➢ Internet sources ➢ Business Journals (ICFAI JOURNAL ON M & A)
Method of Analysis ➢ Regression Model ➢ Valuation (Enterprise value)
Limitations of the study ➢ The study is limited to five selected companies of TATA Group only ➢ The study is limited to analyze short term performance of the acquisition
[pic]
To find the closing price of the company’s script on BSE and NSE and then calculate the percentage script return
RESEARCH METHODOLOGY
Research problem
• To analyze the effect of going global through merger and acquisition on investors and traders long term and short term earnings respectively • Impact on companies’ financials after acquisition or after being acquired • To find out enterprise value of the company by comparing it with the peer group and analyzing the value of the firm • To analyze the difference between prospected and actual returns in terms of % daily cumulative abnormal return of pre acquisition and post acquisition
Objective of the study
• To compare the closing price of 5 companies before and after post acquisition • To compare the key financial ratios of 5 companies before and after acquisition • To do valuation of one or two companies with the method enterprise value and compare the value with peer group and analyze in detail • To analyze detailed case study of 5 companies of Tata Group • To analyze percentage cumulative abnormal return of one month both before acquisition and after acquisition
Research Design
• Exploratory Research
Scope of the study
• To do a relative analysis between BSE Sensex and the share price of the TATA Group of companies • Limited to 5 companies of TATA • Limited to daily prices of stocks both before and after one month of acquisition
Data Sources
• Secondary Data ➢ Prowess software ➢ Internet sources ➢ Business Journals (ICFAI JOURNAL ON M & A)
Method of Analysis ➢ Regression Model ➢ Valuation (Enterprise value)
Limitations of the study ➢ The study is limited to five selected companies of TATA Group only ➢ The study is limited to analyze short term performance of the acquisition
[pic]
To find the closing price of the company’s script on BSE and NSE and then calculate the percentage script return