Merger, Shareholder Value and Corporate Governance an Empirical Study of Mergers & Acquisitions in India
DOI:
https://doi.org/10.33516/maj.v54i2.46-52pKeywords:
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Either for enjoying synergies resulting from enhanced scale of operation or for consolidating market control, mergers and acquisitions have become popular practice in corporate sector in India. However, there is no conclusive empirical evidence that M&As can really enhance return and shareholders’ wealth. This paper presents the findings of a study of thirty six mergers consummated in India. The results obtained from statistical analysis support that M&As are effective in enhancing shareholders’ wealth and value of the firm. However, the space of value addition appears much weaker in post-merger period compared to pre-merger period. It is also observed that the firms saddled with very low efficiency in pre-merger period turn value destroyers in the immediate first year after acquisition.Downloads
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