International Journal of Financial Management

Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

Impact of Growth in the Indian Economy and Financial Markets on M&A Deals during the Last Decade


Affiliations
1 Symbiosis Centre for Management and Human Resource Development (SCMHRD), Symbiosis International (Deemed) University (SIU), Hinjewadi, Pune, Maharashtra, India
     

   Subscribe/Renew Journal


The research aims to evaluate the impact of economic and financial markets’ growth on mergers and acquisitions (M&As) during the last decade in India, i.e., from Q-1 of the calendar year 2011 until Q-1 of the calendar year 2021. In recent years, the M&A space has witnessed considerable activity, owing to economic reforms and preference of M&A route by promoters of Indian companies for expansion or bail-out. External data (secondary research) with respect to the growth of financial markets, economy and M&A deals in India has been collected from Bloomberg, IMAA, and NSE. Statistical tools, like the t-test will be used to analyse the impact of independent variables (growth of financial markets and economy) on the dependent variable, viz. M&A deals, over the last decade. Results of the study are expected to validate the positive correlation between economy/financial markets and M&A deals. The results would also help in developing a better understanding of the M&A scenario in India, and how certain changes in the economic and market environment influence it. The paper attempts to determine the degree of impact of GDP growth and financial markets on M&A deals. It would also seek to organise the theoretical context clearly, recognising any new patterns, while essentially being based on the existing important academic theories.

Keywords

Mergers, Acquisitions, M&A Deals, Economy, GDP Growth, Financial Markets
Subscription Login to verify subscription
User
Notifications
Font Size

  • Caves, R. E. (1987, October). Effects of mergers and acquisitions on the economy: An industrial organization perspective. In L. Browne & E. Rosengren, The Merger Boom. Proceedings of a Conference Held in October 1987, Conference Series Proceedings (vol. 31, pp. 149-168).

  • Chattopadhyay, S., Das, N., & Pattanayak, J. K. (2017). Economic influence vis-a-vis firm performance: An empirical study in Indian context. International Journal of Economic Research, 14(4), 0972-9380.

  • Chiriac, I. (2021). The impact of economy on mergers & acquisitions in European markets. Journal of Financial Studies and Research.

  • Dang, Q. (2016). The impact of economic conditions on mergers & acquisitions activity in international markets.

  • Doytch, N., & Cakan, E. (2011). Growth effects of mergers and acquisitions: A sector-level study of OECD countries. Journal of Applied Economics and Business Research, 1(3), 120-129.

  • Harvard Business Review. (2016). Mergers and acquisitions. Retrieved November 15, 2016, from https:// hbr.org/2016/11/mergers-may-be-profitable-but-arethey-good-for-the-economy

  • Jallow, M. S., Masazing, M., & Basit, A. (2017). The effects of mergers & acquisitions on financial performance: Case study of UK companies. International Journal of Accounting & Business Management, 5(1), 74-92.

  • Kumar, S., & Bansal, L. K. (2008). The impact of mergers and acquisitions on corporate performance in India. Management Decision, 46(10), 1531-1543.

  • Mann, B. J. S., & Kohli, R. (2011). Target shareholders’ wealth creation in domestic and cross-border acquisitions in India. International Journal of Commerce and Management, 21(1), 63-81.

  • Pavaskar, V. (2001). Effect of mergers on corporate performance in India. Vikalpa, 26(1), 19-32.

  • Ramakrishnan, K. (2010). Mergers in Indian industry: Performance and impacting factors. Business Strategy Series.

  • Sehgal, S., Banerjee, S., & Deisting, F. (2012). The impact of M&A announcement and financing strategy on stock returns: Evidence from BRICS markets. International Journal of Economics and Finance, 4(11), 76-90.

  • Sinha, N., Kaushik, K. P., & Chaudhary, T. (2010). Measuring post merger and acquisition performance: An investigation of select financial sector organizations in India. International Journal of Economics and Finance, 2(4), 190-200.

  • Soni, A., Chandra, A., & Varma, S. (2020). Impact of M&As on employment in the indian information technology (IT) industry. The Indian Journal of Labour Economics, 63(2), 311-329.

  • Zaremba, A., & Płotnicki, M. (2016). Mergers and acquisitions: Evidence on post-announcement performance from CEE stock markets. Journal of Business Economics and Management, 17(2), 251-266.

  • Zvezdanović Lobanova, J., Kračun, D., & Kavkler, A. (2018). Effects of cross-border mergers and acquisitions on GDP per capita and domestic investment in transition countries. Journal of Business Economics and Management, 19(1), 124-137.


Abstract Views: 339

PDF Views: 0




  • Impact of Growth in the Indian Economy and Financial Markets on M&A Deals during the Last Decade

Abstract Views: 339  |  PDF Views: 0

Authors

Ayush Pandita
Symbiosis Centre for Management and Human Resource Development (SCMHRD), Symbiosis International (Deemed) University (SIU), Hinjewadi, Pune, Maharashtra, India
Sunit Joshi
Symbiosis Centre for Management and Human Resource Development (SCMHRD), Symbiosis International (Deemed) University (SIU), Hinjewadi, Pune, Maharashtra, India
Dipasha Sharma
Symbiosis Centre for Management and Human Resource Development (SCMHRD), Symbiosis International (Deemed) University (SIU), Hinjewadi, Pune, Maharashtra, India

Abstract


The research aims to evaluate the impact of economic and financial markets’ growth on mergers and acquisitions (M&As) during the last decade in India, i.e., from Q-1 of the calendar year 2011 until Q-1 of the calendar year 2021. In recent years, the M&A space has witnessed considerable activity, owing to economic reforms and preference of M&A route by promoters of Indian companies for expansion or bail-out. External data (secondary research) with respect to the growth of financial markets, economy and M&A deals in India has been collected from Bloomberg, IMAA, and NSE. Statistical tools, like the t-test will be used to analyse the impact of independent variables (growth of financial markets and economy) on the dependent variable, viz. M&A deals, over the last decade. Results of the study are expected to validate the positive correlation between economy/financial markets and M&A deals. The results would also help in developing a better understanding of the M&A scenario in India, and how certain changes in the economic and market environment influence it. The paper attempts to determine the degree of impact of GDP growth and financial markets on M&A deals. It would also seek to organise the theoretical context clearly, recognising any new patterns, while essentially being based on the existing important academic theories.

Keywords


Mergers, Acquisitions, M&A Deals, Economy, GDP Growth, Financial Markets

References