Impact on Shareholders Wealth in M&a
Impact on Shareholders Wealth in M&A Episode
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|Abstract |
|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 corporate. |
|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 redistribution 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
| |
|Abstract |
|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 corporate. |
|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 redistribution 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