N.M.Leepsa, Chandrasekhar Mishra
International Research Journal of Finance and Economics, 83, pp. 6-17.
Publication year: 2012

Abstract:

Mergers and acquisitions (M&A) are the inorganic growth strategies which have got its significance in today’s corporate world due to the intensely competitive business environment. The present paper intends to study the trend in merger and acquisition (M&A) particularly with reference to manufacturing companies. 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 successful. 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 and regulations relevant for M&A have
also undergone change. Hence there is a need to look into the trend of M&A and the post-M&A performance of companies. The present study is an attempt to find out the difference in post-merger performance compared with pre-merger 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 descriptive statistics, paired sample t-test.

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