Impact of Corporate Governance Score on Abnormal Returns and Financial Performance

Abstract

The present chapter provides the empirical evidence on relationship between corporate governance score and M&A performance in Indian context. The role of corporate governance has been explored on the measurement of the announcement effects on the acquiring firms. The empirical findings indicate that companies with high corporate governance score have positive abnormal returns in the short-term , better financial performance , and higher valuations post-M&A, while companies with lower corporate governance score have lower financial performance and lower valuations post-M&A.