IMPACT OF MERGERS AND ACQUISITIONS ON THE VALUE OF FIRMS: A STUDY OF SELECTED PHARMACEUTICAL AND CHEMICAL COMPANIES IN INDIA
Abstract
This research paper focuses on examining the impact of Mergers and Acquisitions (M&A) on the value of selected Pharmaceutical and Chemical companies in India. It covers the period of twelve years from 2000-01 to 2012-13 covering the pre-merger and post-merger phases. The most of the corporate advisors believed that M&A have positive impact on value of firms. However, the objective of achieving a success was subjective estimation. When the study examined each M&A against prior performance based on value of firms for the span of six years pre- and post-merger; it revealed that almost opposite results were found. It was found that among selected eleven units, majority units have not shown significant improvement in the value of firms. In other words, selected M&A were unsuccessful in majority of cases in improving the value of firms. This study supports the evidence to the previous research and also it is found that, by considering the financial and economic parameters the results obtained have shown decline in the value addition of both Pharmaceutical and Chemical companies in post-merger period as compared to the pre-merger period.
Keywords
Mergers, Acquisitions, Earnings per Share, Net Profit Margin, Gross Profit Margin, Return on Equity
Citations
IRE Journals:
CA. Amit C. Shah , Dr. P K Rathod
"IMPACT OF MERGERS AND ACQUISITIONS ON THE VALUE OF FIRMS: A STUDY OF SELECTED PHARMACEUTICAL AND CHEMICAL COMPANIES IN INDIA" Iconic Research And Engineering Journals Volume 1 Issue 7 2018 Page 14-20
IEEE:
CA. Amit C. Shah , Dr. P K Rathod
"IMPACT OF MERGERS AND ACQUISITIONS ON THE VALUE OF FIRMS: A STUDY OF SELECTED PHARMACEUTICAL AND CHEMICAL COMPANIES IN INDIA" Iconic Research And Engineering Journals, 1(7)
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