Mergers and Acquisitions: A Study of Financial Performance, Motives and Corporate Governance

Authors: Neelam Rani, Surendra Singh Yadav, Pramod Kumar Jain



The book examines the market reaction to mergers and acquisitions (M&A) announcements over a period from 2003 to 2015. Mergers and acquisitions continue to be amongst the preferred competitive options available to the companies seeking to grow fast in the rapidly changing global business scenario. M&A as a growth strategy has received attention from developed as well as emerging economies. It has been extensively used by managers as an expansion strategy and also serves as an important instrument for increasing corporate efficiency. Recently, M&A has grown at a rapid pace, creating a need for research to analyze what drives this phenomenon and how it affects firms and markets. As such, this book evaluates the impact of M&A on short-term abnormal returns as well long-term financial performance. It also assesses the management view concerning the motives for undertaking M&A. In addition, the book investigates the corporate governance practices of the acquiring firms and their impact on the short- term as well as long- term performance of those firms.

Table of contents

Mergers and Acquisitions: An Introduction

Research Methodology

Short-Term Performance of Mergers and Acquisitions

Financial Performance Analysis of Mergers and Acquisitions

Survey of Management View on Motives for Mergers and Acquisitions

Development of Corporate Governance Index

Impact of Corporate Governance Score on Abnormal Returns and Financial Performance

Summary and Conclusions