A Study on the Short-Run Profitability of Acquirer Firms in India

Indian Journal of Commerce and Management Studies

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Title A Study on the Short-Run Profitability of Acquirer Firms in India
Creator ., Dr. Ramachandran Azhagaiah
., T. Sathish Kumar
Acquisition; Business Restructuring; Corporate Restructuring; Merger; Merger & Acquisition; Post-Merger Profitability; Short-Run Profitability; Profitability of Chemical Industry
Description Corporate merger and acquisitions (MAs) reached their peak in the twenty-first century. The MAs have become one of the competitive strategies for external growth.  In general, it is believed that MAs can create synergies. Much of the research has focused on performance evaluation, shareholder equity allocation, or even the increase of company market value after the MAs.  The present study is impact of business restructuring on the profitability: An empirical analysis with special focus on Chemical Industry in India with a sample of 10 chemical firms listed in one of the leading Indian stock exchanges namely Bombay Stock Exchange out of 23  firms which have undergone MAs in the same industry during  2007. A comparison of the post-merger performance of the sample acquirer firms by use of profitability measures (gross profit ratio, operating profit ratio and net profit ratios) and paired ‘t’ test during the study period of three years before and three years after the period of MAs. The study proves that the Chemical Industry’s overall profitability is significantly increased after the merger supported by‘t’ test.
Publisher Indian Journal of Commerce and Management Studies
Contributor ERM Publications, India
Date 2020-03-10
Type info:eu-repo/semantics/article
Peer-reviewed Article
Format application/pdf
Identifier http://scholarshub.net/index.php/ijcms/article/view/503
Source Indian Journal of Commerce and Management Studies; Vol 2, No 7 (2011)
Language eng
Relation http://scholarshub.net/index.php/ijcms/article/view/503/497
Rights Copyright (c) 2020 Indian Journal of Commerce and Management Studies

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