Skip to main content
SpringerLink
Log in

Mergers and Acquisitions: An Introduction

  • Chapter
  • First Online:
Mergers and Acquisitions

Part of the book series: India Studies in Business and Economics ((ISBE))

Abstract

This chapter is aimed at providing brief outline of the research presented in this monograph. It has described the reasons underlying mergers and acquisitions (M&A), the theoretical perspectives, and motivations for adopting the strategy of mergers and acquisitions. Additionally, the chapter also describes the objectives, scope, need, significance of the study, research methodology (in brief), and the chapter plan of the research.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 84.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 109.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 109.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Notes

  1. 1.

    Event study methodology is one of the most popular statistical research designs in the area of finance. It is used to examine the market’s response to a well-defined event by examining the security prices around such event.

  2. 2.

    Pretest posttest (also called before and after research design) is an experimental research design in which test units are subjected to an intervention. To observe change in a variable, both pretest and posttest values of the variable are measured and further statistically tested to draw inferences about the population.

References

  • Anand, M., & Singh, J. (2008). Impact of merger announcements on shareholders’ wealth: Evidence from Indian private sector banks. Vikalpa, 33(1), 35–54.

    Google Scholar 

  • Andrade, G., Mitchell, M. & Stafford, E. (2001). New evidence and perspectives on mergers. Journal of Economic Perspectives, 15(2), 103–20.

    Google Scholar 

  • Barai, P., & Mohanty, P. (2010). Short term performance of Indian acquirers–effects of mode of payment, industry relatedness and status of target. Retrieved November 12, 2011, from SSRN:http://ssrn.com/abstract=1697564.

  • Baysinger, B. D., & Hoskisson, R. E. (1990). The composition of boards of directors and strategic control: Effects on corporate strategy. Academy of Management Review, 15(1), 72–87.

    Google Scholar 

  • Berkovitch, E., & Narayanan, M. (1993). Motives for takeovers: An empirical investigation. Journal of Financial and Quantitative Analysis, 28(3), 347–62.

    Article  Google Scholar 

  • Bowman, Robert G. (1983). Understanding and conducting event studies. Journal of Business Finance & Accounting, 10(4), 561–584.

    Article  Google Scholar 

  • Bradley, M., Desai, A., & Kim, E. H. (1988). Synergistic gains from corporate acquisitions and their division between the stockholders of target and acquiring firms. Journal of Financial Economics, 21(1), 3–40.

    Article  Google Scholar 

  • Brown, S. J., & Warner, J. B. (1980). Measuring security price performance. Journal of Financial Economics, 8(3), 205–258.

    Article  Google Scholar 

  • Bruner, R. F. (2002). Does M&A Pay? A survey of evidence for the decision maker. Journal of Applied Finance, 12 (Spring/Summer), 48–68.

    Google Scholar 

  • Chakraborty, M. (2010). The wealth effects of takeover announcement for firms in the financial services sector in India. Journal of Emerging Market Finance, 9(2), 199–227.

    Article  Google Scholar 

  • DePamphilis, Donald. (2001). Mergers, acquisitions, and other restructuring activities. London: Academic Press.

    Google Scholar 

  • Doukas, J., & Travlos, N. G. (1988). The effect of corporate multinationalism on shareholders’ Wealth: Evidence from international acquisitions. Journal of Finance, 43(5), 1161–1175.

    Article  Google Scholar 

  • Gaughan, P. A. (2014). Mergers, acquisitions, and corporate restructuring (5th ed.). New York: Wiley.

    Google Scholar 

  • Gubbi, S., Aulakh, P., Ray, S., Sarkar, M. B., & Chittoor, R. (2010). Do international acquisitions by emerging economy firms create shareholder value? The case of Indian firms. Journal of International Business Studies, 41(3), 397–418.

    Article  Google Scholar 

  • Henderson Jr, G. V. (1990). Problems and solutions in conducting event studies. Journal of Risk and Insurance, 57(2), 282–306.

    Article  Google Scholar 

  • Holmstrom, B., & Kaplan, S.N. (2001). Corporate governance and merger activity in the United States: Making sense of the 1980s and 1990s. Journal of Economic Perspectives, 15(2), 121–144.

    Google Scholar 

  • Jensen, M. (1986). Agency costs of free cash flow, corporate finance, and takeovers. American Economic Review, 76(2), 323–329.

    Google Scholar 

  • Kiymaz, H. (2004). Cross-border acquisitions of US financial institutions: Impact of macroeconomic factors. Journal of Banking & Finance, 28(6), 1413–1439.

    Article  Google Scholar 

  • Kohli, R., & Mann, B. J. S. (2012). Analyzing determinants of value creation in domestic and cross-border acquisitions in India. International Business Review, 21(6), 998–1016.

    Article  Google Scholar 

  • Konchitchki, Y., & O’Leary, Daniel E. (2011). Event study methodologies in information systems research. International Journal of Accounting Information Systems, 12(3), 99–115.

    Article  Google Scholar 

  • Kothari, S. P., & Warner, J. B. (2007). Econometrics of event studies. Chapter 1. In Handbook of corporate finance- empirical corporate finance. Elsevier B.V.

    Google Scholar 

  • MacKinlay, A. C. (1997). Event studies in economics and finance. Journal of Economic Literature, 35(1), 13–39.

    Google Scholar 

  • Mann, B. S., & Kohli, R. (2009). Impact of mode of payment and insider ownership on target and acquirer’s announcement returns in India. Vikalpa, 34(4), 51–66.

    Google Scholar 

  • Manne, Henry G. (1965). Mergers and the market for corporate control. Journal of Political Economy, 73(2), 110–20.

    Article  Google Scholar 

  • Markides, C. C., & Ittner, C. D. (1994). Shareholder benefits from corporate international diversification: evidence from U.S. international acquisitions. Journal of International Business Studies, 25(2), 343–366.

    Article  Google Scholar 

  • Marris, R. (1964). Theory of Managerial Capitalism. London: Macmillan.

    Book  Google Scholar 

  • McWilliams, A., & Siegel, D. (1997). Event studies in management research: Theoretical and empirical issues. Academy of Management Journal, 40(3), 626–57.

    Article  Google Scholar 

  • Morck, R., & Yeung, B. (1992). Internationalization: An event study test. Journal of International Economics, 33(1/ 2), 41–56.

    Google Scholar 

  • Mueller, D. C., & Yurtoglu, B. B. (2007). Corporate governance and the returns to acquiring firms’ shareholders. Managerial and Decision Economics, 28(8), 879–896.

    Article  Google Scholar 

  • Peterson, P. P. (1989). Event studies: A review of issues and methodology. Quarterly Journal of Business and Economics, 28(3), 36–66.

    Google Scholar 

  • Rani, N., Yadav, S. S., & Jain, P. K. (2012). Impact of mergers and acquisitions on returns to shareholders of acquiring firms: Indian economy in perspective. Journal of Financial Management and Analysis, 25(1), 1–26.

    Google Scholar 

  • Rani, N., Yadav, Surendra S., & Jain, P. K. (2013). Market response to the announcement of mergers and acquisitions: An empirical study from India. VISION: The Journal of Business Perspective, 17(1), 1–16.

    Google Scholar 

  • Rani, N., Yadav, Surendra S., & Jain, P. K. (2014). The Impact of Cross-border and Domestic Acquisitions on Acquirer Shareholders’ Wealth in India. International Journal of Business and Management, 9(3) March, 88–110.

    Google Scholar 

  • Roll, R. (1986). The hubris hypothesis of corporate takeovers. Journal of Business, 59, 197–216.

    Article  Google Scholar 

  • Serra, A. P. (2004). Event study tests—A brief survey. Gestão. Org-RevistaElectrónica de GestãoOrganizacional, 2(3), 248–255.

    Google Scholar 

  • Seth, A. (1990). Value creation in acquisitions: A re-examination of performance issues. Strategic Management Journal, 11(2), 99–115.

    Article  Google Scholar 

  • Seth, A., Song, K. P., & Pettit, R. (2000). Synergy, managerialism or hubris: an empirical examination of motives for foreign acquisitions of US firms. Journal of International Business Studies, 31(3), 387–405.

    Article  Google Scholar 

  • Shleifer, A., & Vishney, R. W. (1989). Management entrenchment: The case of manager specific investments. Journal of Financial Economics, 25(1), 123–39.

    Article  Google Scholar 

  • Shleifer, A., & Vishney, R. W. (2003). Stock market driven acquisitions. Journal of Financial Economics, 70(3), 295–311.

    Article  Google Scholar 

  • Wells, William H. (2004). A beginner’s guide to event studies. Journal of Insurance Regulation, 22(4), 61–70.

    Google Scholar 

  • Williamson, O. E. (1984). Corporate governance. Yale Law Journal, 93(7), 1197–1230.

    Article  Google Scholar 

  • Zhu, P., Jog, V., & Otchere, I. (2011). Partial acquisitions in emerging markets: A test of the strategic market entry and corporate control hypotheses. Journal of Corporate Finance, 17(2), 288–305.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Indian Institute of Management Shillong, Shillong, Megalaya, India

    Neelam Rani

  2. Department of Management Studies, Indian Institute of Technology Delhi, New Delhi, India

    Surendra Singh Yadav & Pramod Kumar Jain

Authors
  1. Neelam Rani
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Surendra Singh Yadav
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Pramod Kumar Jain
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Neelam Rani .

Rights and permissions

Reprints and permissions

Copyright information

© 2016 Springer Science+Business Media Singapore

About this chapter

Cite this chapter

Rani, N., Yadav, S.S., Jain, P.K. (2016). Mergers and Acquisitions: An Introduction. In: Mergers and Acquisitions. India Studies in Business and Economics. Springer, Singapore. https://doi.org/10.1007/978-981-10-2203-6_1

Download citation

  • DOI: https://doi.org/10.1007/978-981-10-2203-6_1

  • Published:

  • Publisher Name: Springer, Singapore

  • Print ISBN: 978-981-10-2202-9

  • Online ISBN: 978-981-10-2203-6

  • eBook Packages: Economics and FinanceEconomics and Finance (R0)

Publish with us

Policies and ethics

Search

Navigation