The aim of this article is to identify and determine various dimensions of deal characteristics affecting the post-acquisition performance of Indian target firms. Available researches have focussed on the stock market reaction as the indicator of target firm performance. Nonetheless, various determinants are found to affect the post-acquisition performance of target firms.
M&As are the key drivers for economic growth in developing countries, specifically with respect to India. In the view of proliferating inbound acquisitions and thereby enhancing the FDI of the country, many governmental policies are also implemented. Though a substantial literature is available towards various aspects of M&As in developed countries, only a very few works deal with respect to developing countries and further only a very minimal research is done with special attention to India.
The purpose of this paper is to compare the pre-acquisition performance of domestic and cross-border Indian target firms. Past studies suggest that foreign investors mostly acquire well-performing domestic firms, while domestic target firms invest more often in poorly performing firms.
Abstract: Mergers and Acquisitions are the major sources of Foreign Direct Investment and one of the effective strategies for organisational expansion and restructuring. In India, Cross border Acquisitions have increased the inward flow of foreign investments significantly and will continue to remain one of the preferred ways for attracting international investments.
Securities and Exchange Board of India (SEBI) has recently decided to tighten screws on “Participatory Notes” also known as “P-Notes”. P-Notes, or off-shore derivative instruments (ODIs), are instruments issued by foreign portfolio investors (FPIs) to overseas investors who wish to invest in Indian stock markets without registering themselves with SEBI.