N.M. Leepsa, Dr. Chandra Sekhar Misra

Transcription

1 AsiaPacific Finance and Accounting Review Vol. I, No., October December pp., ISSN: N.M. Leepsa, Dr. Chandra Sekhar Misra Mergers and Acquisitions (M&A) are the inorganic growth strategies which have got its significance in today s corporate world due to intensely competitive business environment. While M&A is considered as one of the strategies for growth, the companies are expected to perform post M&A so that those are proved to create wealth for shareholders. From the literature review it is found that there is no conclusive evidence about the impact of M&A on corporate performance. Moreover in recent period M&A deals have gone up manifold. Hence there is a need to look into the post M&A performance of companies. The present study is an attempt to find out the difference in postacquisition performance compared with preacquisition in terms of profitability, liquidity and solvency. The scope of the study is limited to manufacturing sector companies in India. The statistical tools used are Paired Sample ttest and Wilcoxon Signed Ranks Test. Key Words: Merger; Acquisition; Financial Performance; Manufacturing Companies; India Introduction Today s corporate world is surrounded with changing business environment in relation to intense competition, diversified products, global markets, educated customers, new technology and advanced process of manufacture. It is not enough for the companies to keep pace with these changes but is expected to beat competitors and innovate in order to continuously maximize shareholder value. Growth is inevitable for the companies to keep pace with the changes. The growth strategy is divided into two types: Organic Growth Strategy and Inorganic Growth Strategy. Mergers and Acquisitions (M&A) are the inorganic growth strategies for achieving accelerated and consistent growth. It has gained importance throughout the world in the current scenario due to globalisation, liberalisation, technological developments and intensely competitive business environment. The greater than before competition in the global market has encouraged the Indian corporate to go for mergers and acquisitions as an important strategic alternative to survive and grow. Previous Research Literature review has been made on impact of mergers and acquisitions on the company s operating and financial performance. Most of research works are done in United States of America & United Kingdom apart from Malaysia, Japan, Australia, Greece, Canada, Taiwan, Thailand and India. Few numbers of studies are done with respect to Indian Mergers and Acquisitions. Literature has not been able to provide conclusive evidence whether M&A create value or destroy wealth of shareholders. The literature review is basically on Studies using Accounting Measures, Studies using Event Study Methodology, and Studies using Multiple Performance Measures. Studies using Accounting Measures Merged firms show significant improvements in operating performance (Ghosh, ). There is improvement in postmerger operating financial performance measured by industryadjusted return on assets (Ramaswamy and Waegelein, ). Using book value of asset and sales model, corporate performance improves after merger (Kumar and Rajib, ). Research scholar at Vinod Gupta School of Management, IIT Kharagpur, INDIA. ( leepsa@vgsom.iitkgp.ernet.in) Asst. Professor, Vinod Gupta School of Management, IIT Kharagpur, INDIA. ( csmishra@vgsom.iitkgp.ernet.in)

2 Financial performance of merged companies improve (Vanitha and Selvam, ). Acquisition growth is much lower than internal growth but there is an additional and permanent reduction in profitability following acquisition (Dickerson, Gibson, and Tsakalotos, ). The acquiring firm experience reduced operating performance after acquisition (Yook, ). The profitability, liquidity and solvency of combined company declines after the M&A event. The negative performance is not different from control firms (Ooghe, Laere, and Langhe, ). The profitability of a firm that performed an M &A is decreased due to Merger andacquisition event (Pazarskis et al., ). Studies using Event Study Methodology Event study is the approach for the examination of abnormal stock returns to the shareholders of both bidders and target around the M&A announcement. There is a statistically significant positive return to acquiring firm shareholders (Asquith, Bruner, and Mullins, ; Loderer and Martin, ). Bidding firms do not under perform relative to the market (Jakobsen and Voetmann, ). Acquisitions by small firms are profitable for their shareholders, but these firms make small acquisitions with small dollar gains. Large firms make large acquisitions that result in large dollar losses (Moellera, Schlingemannb, and Stulz, ). The acquisitions from to raised shareholder wealth (Leeth and Borg, ). The cumulative abnormal return is statistically significant giving positive returns to acquiring firm shareholders (Chakrabarti, ; Dutta and Jog, ; Kyriazis, ; Soongswang, ). Over the longterm, in the postannouncement period, acquiring firms earn lower returns relative to those earned in the preacquisition performance but their relative performance remains exceptionally good, on average (Rosa et al., ). Corporate performance does not improve after merger, if performance is evaluated using market value model (Rajib, ). Target firm gain from the takeovers, while acquiring firm just break even and combined gains were small. The cumulative abnormal return is positive to the target firm shareholders (Leeth and Borg, ). The bidder shareholders gain in long run (Fuller, Netter, and Stegemoller, ); Gregory, ). Studies using Multiple Performance Measures Several studies are reviewed under category of multiple performance measures as those may not be classified solely to accounting approach or event study approach. All significant positive merger benefits occur during the first year (Shick and Jen, ). The financial performance of Japanese manufacturing companies using the rate of return on equity increased after merger (Katsuhiko and Noriyuki, ). There is a significant, positive comovement in vertical merger activity and wealth effects (Goyal, ). The performance ratios that have legal implications (capital adequacy and solvency ratios) improved after the merger (Kithinji and Waweru, ). The performance of merged firms improves significantly following their combination. Buyers, targets and combined firms underperform their peers in five years before merger, and outperform their peers in five years after (Carline, Linn, and Yadav, ). Using event study and accounting approach it is found that the stock price and operating performance of the acquirers underperformed compared to firms that did not engage in M&A activity (Becker, Goldberg and Kaen, ). The returns to the acquirers were marginally negative from the serial acquisition of technology firms (Adavikolanu and Korrapati, ). Studies have failed to provide evidence regarding the relation between industry relatedness and the PostM&A performance. There is no consensus view in the literature regarding the effects of firm size on PostM&A performance (Ismail, Abdou, and Annis, ). Research Objectives Based on the research gap areas from the literature survey, the following are the objectives of the study: To find out the long term post acquisition financial performance in manufacturing sector companies in India. Research Methodology. Hypotheses Based on the research gap areas from the literature survey, the following research hypotheses are tested: Ho: There is no difference between the Post Acquisition financial performances in manufacturing sector companies in India Ho: There is no difference in performance of acquirer acquiring relatively large and small companies Ho: There is no difference in performance of large size companies and small size acquiring companies Asia Pacific Finance and Accounting Review Vol. I, No., OctoberDecember

3 Ho: There is no difference in performance of related acquisition deals and unrelated acquisition deal acquiring companies.. Hypotheses Testing Average preacquisition and postacquisition financial performance ratios is compared to see if there is any statistically significant change in financial performance due to mergers and acquisition, using paired two sample ttests x μ t = s n Where, s is the standard deviation of the sample and n is the sample size. The degrees of freedom used in this test is (n ) x (PreM&A) and x (PostM&A) are sample statistics Table : Variables of the Study μ and μ are the population parameters The nonparametric statistical hypothesis test used as an alternative to the Paired Student's ttest is Wilcoxon SignedRank Test. It is used when the population cannot be assumed to be normally distributed in case of two related samples or repeated measurements on a single sample. The Wilcoxon signed ranked statistic W is defined as: I(.)is an indicator function, θ = median ; Z = Y X i i i W + = Σ n ø i R i i= where ø = I(Z >) i The study is carried out over various years under consideration using Accounting Based Approach using different financial parameters. i + Parameters Variables Explanation Evidence Liquidity Leverage Current Ratio (CR) Quick Ratio (QR) Networking Capital/Sales Total Debt Ratio(TDR) Interest Coverage Ratio(ICR) Return on Capital Employed (ROCE) Return on Net Worth (RONW) Current Assets/Current Liabilities and Provisions (Current AssetsInventory) / Current Liabilities and Provisions (Current Assets minus Current Liabilities) by Sales Total Debt to Total Assets Earnings before Interest and Taxes (EBIT)/Interest (Kumar and Rajib, ) (Kumar and Rajib, ). (Kumar and Rajib, ) (Kumar and Rajib, ) (Kumar and Bansal, ) EBIT/Capital Employed (Kumar, ) Profit after Tax /Net Worth (Kumar, ) Source: Compiled from different Sources All the financial performance parameters are adjusted for industry average. Industry average represents the performance of companies that have not gone through merger and acquisition during the period under reference. Basic Specifications for the Study includes the following The M&A cases are classified into large and small acquirers and also on basis of relatedness. Total Assets is taken as the proxy for the size of the Asia Pacific Institute of Management, New Delhi

4 companies. The median of the total assets of the acquirer company in the acquisition year is taken into consideration for segregating the acquirer into large and small companies. For the relative size of the companies (size of acquirer to size of target) the total assets of the acquirer is compared with the total assets of the target companies in the acquisition year... Period of Study The period of study is from to. This period specially chosen to so that the performance of the acquisition deals during to is done for preacquisition three years and postacquisition three years. Data for these years are available... Sources of Data CMIE Business Beacon Database CMIE Prowess Database.. Scope of Study The study is confined to postacquisition performance of companies in manufacturing sectors in India... Sample Selection The sample consists of only manufacturing companies. Unlisted firms are eliminated due to unavailability of financial information. Acquisitions involving firms in banking and financial services industries (BFSI) are not considered due to the fact that these industries performance is generally affected by other economic environmental factors compared to manufacturing sectors. Financial performance measures as mentioned earlier are also not appropriate for firms in BFSI sector. The study is undertaken only for period of preacquisition period of three years and postacquisition period of three years due to availability of data up to that period. The sample is further filtered so that three year pre and three year postacquisition data for both acquired and target companies are available. Table : Sample of Sector Wise Acquisitions Industry Acquirer Target Total % Total % Chemical Food & Beverage Textiles Transport Equipment Diversified Metals & Metal Products Miscellaneous Machinery Non Metallic Total Source: Compiled from CMIE Prowess Database The highest number of deals found in done in chemical industry followed by food and beverage and textile companies. Asia Pacific Finance and Accounting Review Vol. I, No., OctoberDecember

5 Table : Sample of Deal Wise Acquisitions Year Total Related % Unrelated % Total Source: Compiled from CMIE Prowess Database There were more of related acquisitions (%) compared to unrelated acquisitions (%) over the sample period. Table : Sample of Control Firms for Industry Average Returns Industry. Transport Equipment Textiles Non Metallic Miscellaneous Metals & Metal Products Machinery Food & Beverage Diversified Chemicals Source: Compiled from CMIE Prowess Database In chemical industry more number of companies is found compared to other industries. Empirical Results and Discussions The results of the study are in different categories: I. Performance of companies without industry average returns II. III. IV. V. Performance of companies with industry average returns Performance of acquiring firm when taking over relatively large and small companies Performance of large and small size acquiring companies Performance of related and unrelated acquisitions The results of the study are discussed below: Asia Pacific Institute of Management, New Delhi

6 Table Performance of Acquirer and Target companies using Paired Sample t Test Paired Differences Acquirer Target Mean t Sig. (tailed) Mean t Sig. (tailed) CR CR QR QR NWCS NWCS TDR TDR ICR ICR ROCE ROCE RONW RONW The current ratios of the acquirer declined while the increased in case of Target Company. The quick ratio and net working capital by sales ratio of both acquirer and target companies improved after acquisition period. Debt paying capacity has reduced in both target and acquiring firm. The profitability of the acquirer company improved while Target Company declined. Any positive or negative change after post acquisition period is insignificant in case of acquirer. While based on the negative rank target companies, change in the liquidity ratio is significant for companies. The return on capital employed of five companies has positively changed significantly. In case of performance of companies without taking the control firms into account, the current ratio has declined (statistically insignificant) while the quick ratio has improved (statistically significant). This indicates that growth in inventory is less than the growth in other current assets. The networking capital by sales ratio and interest coverage ratio has gone up which is a good sign for the company but along with it the total debt ratio has risen. The interest coverage ratio has increased which shows that the companies have better capacity to repay the debt they have taken. But increase in the interest coverage ratio is not statistically significant. The profitability ratios have shown a poor picture as both return on capital employed and return on net worth has reduced after companies went for acquisition. In terms of the current ratio companies have not improved in their liquidity position while eight companies have improved. In the quick ratio terms companies have positive performance while five companies have negative performance. In the similar way post acquisition networking capital by sales ratio has positive impact for companies while negative for five companies. Debt burden has been more in post acquisition period to companies while less for four companies with one company that remained indifferent. But to repay the debt burden companies have positive interest ratio in post acquisition period while companies have negative interest coverage ratio. The return on capital employed and the return on net worth has reduced in and companies in post acquisition period respectively while companies have improved in their profitability ratios. Acquirer acquiring large target firms improves performance in terms return on net worth compared to acquirer acquiring small target firms. Acquirer acquiring small target firms has better debt paying capacity compared to those acquiring firms who purchase large target firms. Asia Pacific Finance and Accounting Review Vol. I, No., OctoberDecember

7 Table : Performance of Acquirer and Target companies using Wilcoxon Signed Ranks Test Wilcoxon Signed Ranks Test Liquidity Leverage Acquirer Target Liquidity Leverage CRCR QRQR NWC NWC TDR TDR ICR ICR ROCE ROCE RONW RONW CRCR QRQR NWC NWC TDR TDR ICR ICR ROCE ROCE RONW RONW Negative Ranks Positive Ranks Ties Total Mean Rank Sum of Ranks Test Statistics Z.(^).(^).(#).(#).(#).(^).(#).(#).(#).(#).(#).(#).(^).(#) Asymp. Sig. (tailed) Notes: The symbols used in this table as well as subsequent tables: ^: Based on Positive Ranks (PostAcquisition Performance > Pre Acquisition Performance) #:Based on Negative Ranks (Post Acquisition Performance < PreAcquisition Performance) Asia Pacific Institute of Management, New Delhi

8 Table Post Acquisition Performance using Paired Samples Test Paired Samples Test Without Industry Adjustment Paired Differences With Industry Adjustment Returns Mean t Sig. (tailed) Mean t Sig. (tailed) CR CR QRQR NWCNWC TDRTDR ICRICR ROCEROCE RONW RONW In case of relatively large target firms, the profitability ratios have not improved but the decline is not statistically significant. The liquidity ratio in term of the networking capital/sales have improved but it is statistically insignificant. In the leverage ratios, the interest coverage ratio have improved but it is statistically insignificant. But the debt has risen significantly after acquisition. It may be because of the fact that the acquirer has taken over relatively large target companies. The performance has reduced as the acquirer company may have not been able to control a larger target company. In case of relatively small target firms, the results suggest that there is a statistically significant difference between the pre and postacquisition quick ratio, networking capital/sales ratio, return on net worth/sales ratio. The three ratios have declined in the post acquisition period. The safety margin in terms of being able to meet its interest obligations of five negatively performed companies has reduced but it statistically insignificant. In case of large size companies, the quick ratio has increased (statistically significant) along with networking capital/sales which reflects that companies have enough liquid assets after post acquisition period. Return on capital employed has reduced (statistically significant) in the post acquisition period which indicates that there is erosion of equity of the companies may be because of less EBIT being generated to service the cost of borrowing. In case of small size companies, the liquidity ratios have improved after post acquisition period and also the interest coverage ratios but the result is statistically insignificant. The firm's ability to finance additional sales without incurring additional debt has increased since the networking capital/ sales ratio has improved in the post acquisition period. The leverage ratio in terms of total asset to total liability has risen but statistically insignificant. The profitability ratios show different results for different parameter. In terms of return on capital employed the there is statistically insignificant decline in performance while in terms of the return on net worth there is improvement in performance but statistically insignificant. Asia Pacific Finance and Accounting Review Vol. I, No., OctoberDecember

9 Table : Post Acquisition using Wilcoxon Signed Ranks Test Without Industry Adjustment With Industry Adjustment Returns Liquidity Leverage Liquidity Leverage CRCR QRQR NWC NWC TDR TDR ICR ICR ROCE ROCE RONW RONW CRCR QRQR NWC NWC TDR TDR ICR ICR ROCE ROCE RONW RONW Wilcoxon Signed Ranks Test Negative Ranks Positive Ranks Ties Total Mean Rank +Ve Ve Sum of Ranks +Ve Ve Test Statistics Z.(^).(#).(#).(#).(#).(^).(^).(#).(#).(#).(#).(#).(^).(^) Asymp. Sig. (tailed) Notes: The symbols used in this table as well as subsequent tables: ^: Based on Positive Ranks (PostAcquisition Performance > Pre Acquisition Performance) #:Based on Negative Ranks (Post Acquisition Performance < PreAcquisition Performance) Asia Pacific Institute of Management, New Delhi

10 Table : Performance of Combined Firms where there are relatively Large and Small Target Firms Relatively Large Target Firms Relatively Small Target Firms Paired Samples Test Mean t Sig. (tailed) Mean t Sig. (tailed) CR CR QRQR NWCNWC TDRTDR ICRICR ROCEROCE RONW RONW In case of large size companies, the changes in quick ratio, networking capital by sales ratio, total debt ratio, return on capital employed, and return on net worth is statistically significant in post acquisition period. Based on the negative ranks (Post TDR<Pre TDR, which means less debt burden in post acquisition period) total debt ratio is statistically significant for one company. In case of small size companies, in terms of the liquidity ratios the positive performance after acquisition is done by companies and negative performance by companies. In terms of the leverage ratios the companies have shown increase where as rest have shown decrease. The improvement in the networking capital by sales is statistically significant. In terms of the profitability ratios the positive performance after acquisition is made by eight companies while negative performance is made by companies. In case of related acquisition deals, the profitability ratios reduced significantly after acquisition. In case of unrelated acquisitions, there is significant improvement in the liquidity of companies after acquisition in terms of quick ratio and networking capital/sales ratio. In case of related acquisitions, the change in profitability for those companies where there is improvement (in profitability) is significant in the positively performed companies is quite significant in terms of profitability. In case of unrelated acquisitions, there is significant change in the quick ratio and networking capital/sales in post acquisition period. Around companies have positive returns in terms of quick ratio and in terms of networking capital/sales ratio. In case of related acquisitions, liquidity performance of the combined firm between chemical industry companies Indoco Remedies Ltd and Solvay Pharma India Ltd; textile companies R S W M Ltd and Cheslind Textiles Ltd. has improved in post acquisition period. The profitability performance of all the companies has reduced in post acquisition period. Indoco Remedies Ltd and Solvay Pharma India Ltd deal has been successful in reducing the debt burden in post acquisition period along with increasing the interest paying capacity. But the rest of the related deals were unable to create interest paying capacity and had high debt burden in post acquisition period. Limitations of the Study Only manufacturing sector companies are considered for the study. The period of study is up to, since three year post acquisition performance data are required for the study. Asia Pacific Finance and Accounting Review Vol. I, No., OctoberDecember

11 Table : Performance of Combined Firms where there are relatively Large and Small Target Firms Relatively Large Target Firms Relatively Small Target Firms Liquidity Leverage Liquidity Leverage CRCR QRQR NWC NWC TDR TDR ICR ICR ROCE ROCE RONW RONW CRCR QRQR NWC NWC TDR TDR ICR ICR ROCE ROCE RONW RONW Wilcoxon Signed Ranks Test Negative Ranks Positive Ranks Ties Total Mean Rank +Ve Ve Sum of Ranks +Ve Ve Test Statistics Z.(^).(#).(#).(#).(#).(^).(#).(^). (#). (#).(#).(#).(^).(^) Asymp. Sig. (tailed) Notes: The symbols used in this table as well as subsequent tables: ^: Based on Positive Ranks (PostAcquisition Performance > Pre Acquisition Performance) #:Based on Negative Ranks (Post Acquisition Performance < PreAcquisition Performance) Asia Pacific Institute of Management, New Delhi

12 Table : Performance of Large and Small Size Companies (Combined Firms) Paired Samples Test Large Size Companies Paired Differences Small Size Companies Paired Differences Mean t Sig. (tailed) Mean t Sig. (tailed) CR CR QRQR NWCNWC TDRTDR ICRICR ROCEROCE RONW RONW Only long term performance measures are considered. Short term returns as a result of announcements of M&A (event studies) are not considered. Long year is defined as three years only. Multiple acquisitions (same company making more than one acquisition deals within the sample period) are not excluded from sample keeping in view the sample size. Summary and Concluding Remarks This study attempted to evaluate the post acquisition performance of manufacturing companies in India using both traditional performance measures of corporate performance. Although the results are subject to limitations noted above, this is an important study in academic literature in Indian M&A context given the significance of acquisitions in Indian companies in recent years. There is mixed results of companies performance in post acquisition period. Using the traditional performance measures it is found that the acquirer who has taken over relatively larger companies compared to their size has performed negatively. There is no difference in performance if the companies are segregated into related and unrelated acquisitions. Both have negative returns in the post acquisition period. Larger the size of acquirer company, larger the loss to their shareholder as they earn negative returns. It may be the fact that larger firms made larger acquisitions which earned them larger losses. Scope of Further Study The study can be applied in the merger cases in manufacturing sector. Study can be made on the pre and post acquisition in non manufacturing companies. Apart from the liquidity, solvency and profitability other performance parameters like cash flows can be used to know the performance of companies gone for M&A strategy. Notes: All the financial parameters are followed by after the abbreviation if those are related to preacquisition and likewise followed by if those are related to postacquisition. Asia Pacific Finance and Accounting Review Vol. I, No., OctoberDecember

13 Table : Performance of Large and Small Size Companies (Combined Firms) Large Size Companies Small Size Companies Liquidity Leverage Liquidity Leverage CRCR QRQR NWC NWC TDR TDR ICR ICR ROCE ROCE RONW RONW CRCR QRQR NWC NWC TDR TDR ICR ICR ROCE ROCE RONW RONW Wilcoxon Signed Ranks Test Negative Ranks Positive Ranks Ties Total Mean Rank +Ve Ve Sum of Ranks +Ve Ve Test Statistics Z.(^).(#).(#).(#).(#).(^).(^).(^).(#).(#).(#).(#).(^).(#) Asymp. Sig. (tailed) Notes: The symbols used in this table as well as subsequent tables: ^: Based on Positive Ranks (PostAcquisition Performance > Pre Acquisition Performance) #:Based on Negative Ranks (Post Acquisition Performance < PreAcquisition Performance) Asia Pacific Institute of Management, New Delhi

14 Table : Post Acquisition Performance according to Type of Deal Related Firms Unrelated Firms Paired Samples Test Mean t Sig. (tailed) Mean t Sig. (tailed) CR CR QRQR NWCNWC TDRTDR ICRICR ROCEROCE RONW RONW References Adavikolanu, S. and Korrapati, R.B. (). A Study on Value Creation in Serial Acquisition of Technology Firms, Paper Presented at AlliedAcademies International Conference, Proceedings of the Academy of Strategic Management, (), New Orleans. Asquith P, Bruner R.F., and Mullins, D.W. (). The Gains to Bidding Firms from Merger, Journal of Financial Economics,,. Becker, J. R., Goldberg, L.G., and Kaen, F.R. (). Mergers andacquisitions as a Response to the Deregulation of the Electric Power Industry: Value Creation or Value Destruction?, Journal of Regulatory Economics (),. Carline, N.F., Linn, S. C., andyadav, P. K. (). Impact of Firm Specific and Deal Specific Factors on the Real Gains in Corporate Mergers and Acquisitions: An Empirical Analysis, Working Paper, University of Oklahoma Chakrabarti, R. (). Do Indian Acquisitions add Value?, Money and Finance ICRA B u l l e t i n, R e t r i e v e d f r o m [accessed //]. Dickerson, A.P., Gibson, H.D., and Tsakalotos, E. (). The Impact of Acquisitions on Company Performance: Evidence from a Large Panel of UK Firms, Oxford Economic Papers, New Series, (),. Dutta, S., and Jog, V. (). The LongTerm Performance ofacquiring Firms: ARe Examination of an Anomaly, Journal of Banking & Finance,.,. Fuller, K., Netter, J. and Stegemoller, M. (). What Do Returns toacquiring Firms Asia Pacific Finance and Accounting Review Vol. I, No., OctoberDecember

15 Related Firms Unrelated Firms Liquidity Leverage Liquidity Leverage Wilcoxon Signed Ranks Test CRCR QRQR NWC NWC TDR TDR ICR ICR ROCE ROCE RONW RONW CRCR QRQR NWC NWC TDR TDR ICR ICR ROCE ROCE RONW RONW Table : Post Acquisition Performance according to Type of Deal Negative Ranks Positive Ranks Ties Total Mean Rank +Ve Ve Sum of Ranks +Ve Ve Test Statistics Z.(#).(^).(^).(^).(^).(^).(^).(#).(#).(#).(#).(#) Asymp. Sig. (tailed) Notes: The symbols used in this table as well as subsequent tables: ^: Based on Positive Ranks (PostAcquisition Performance > Pre Acquisition Performance) #:Based on Negative Ranks (Post Acquisition Performance < PreAcquisition Performance)....(#).(#).. Asia Pacific Institute of Management, New Delhi

16 Tell Us? Evidence from Firms that make many Acquisitions, The Journal of Finance, (),. Ghosh, A. (). Does Operating Performance really improve following Corporate Kumar, R. (). PostMerger Corporate Performance: An Indian Perspective, Management Research News, (),. Acquisitions?, Journal of Corporate Finance, (),. Kumar, S., and Bansal, L.K. (). The Impact of Mergers andacquisitions on Gregory, A. (). The Long Run Abnormal Performance of UKAcquirers and the Free Corporate Performance in India, Management Decision, (),. Cash Flow Hypothesis, Journal of Business Finance & Accounting, (),. Ismail, T.H, Abdou, A.A. and Annis, R.M. (). Review of Literature Linking Corporate Performance to Mergers and Acquisitions, The Review of Financial and Accounting Studies,,. Jakobsen, J.B and Voetmann, T.B. (). Post Acquisition Performance in the Short and Long Run Evidence from the Copenhagen Stock Exchange, The European Journal of Finance,,. Katsuhiko, I. and Noriyuki, D. (). The Performances of Merging Firms in Japanese Manufacturing Industry:, The Journal of Industrial Economics, (),. Kithinji, A.M., and Waweru, N.M. (). Merger Restructuring and Financial Performance of Commercial Banks in Kenya, Journal of Economics, Management and Financial Markets, (),. Kumar, B. R., and Rajib, P. (). Mergers and Corporate performance in India: An Empirical Study, Decision, (),. Kyriazis, D. (). The LongTerm Post Acquisition Performance of GreekAcquiring Firms, International Research Journal of Finance and Economics,,. Leeth J. D., and Borg J. R. (). The Impact of Takeovers on Shareholder's Wealth during the s Merger Wave, Journal of Financial and Quantitative Analysis, (),. Leeth, J.D., and Borg, J. R. (). The Impact of Mergers onacquiring Firm Shareholder Wealth: The Experience, Ernpirica,,. Loderer, C., and Martin, K. (). Post Acquisition Performance of Acquiring Firms, Financial Management,,. Moellera, S.B., Schlingemannb, F.P., and Stulz, R.M. (). Firm Size and the Gains from Acquisitions, Journal of Financial Economics,,. Ooghe, H., Laere, E. V., and Langhe, T. D. (). Are Acquisitions Worthwhile? An Empirical Study of the Post Acquisition Performance of Privately held Belgian Companies, Small Business Asia Pacific Finance and Accounting Review Vol. I, No., OctoberDecember

17 Economics, (),.. Pazarskis, M., Vogiatzogloy, M., Christodoulou, P., and Drogalas, G. (). Exploring the Improvement of Corporate Performance after MergersThe Case of Greece, International Research Journal of Finance and Economics,,. Ramaswamy, K. P. and Waegelein, J.F. (). Firm Financial Performance following Mergers, Review of Quantitative Finance and Accounting,,. Rosa, R.D.S., Engel, R., Moore, M. and Woodliff, D. (). PostAcquisition Performance and Analyst following US Evidence, R e t r i e v e d f r o m /MarkMoore.pdf, [accessed //] Shick, R.A. and Jen, F. C. (). Merger Benefits to Shareholders ofacquiring Firms, Financial Management, (),. Soongswang, A. (). Shareholder Wealth Effects: Successful vs. Unsuccessful Bidders, Journal of Accounting Business & Management, (),. Vanitha, S. and Selvam, M. (). Financial Performance of Indian Manufacturing Companies during Pre and Post Merger, International Research Journal of Finance and Economics,,. Yook, K.C. (). The Measurement of Post Acquisition Performance using EVA, Quarterly Journal of Business and Economics, (), Asia Pacific Institute of Management, New Delhi