Post-acquisition Performance Analysis of Indian Target Firms: The Role of Deal Characteristics

Abstract

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. Bearing that in mind, this article focusses on the significance of deal characteristics while assessing the performance of the Indian target firms post-acquisition. The article attempts to analyse the post-acquisition performance of target firms independent of the acquirer firm to get a more appropriate perception of their position. The change model, generalised method of moments (GMM) model and the regression model has been employed to assess the changes in operating performance, analyse the importance of financial variables in post-acquisition performance and study the impact of deal characteristics in the post-acquisition performance of the Indian target firms. The outcomes reveal that there has been a significant difference in the improvement of targets depending on whether it has been taken over by a domestic acquirer or inbound acquirer.

Does Female on Board Affect M&A Participating Firms’ Performance? Empirical Evidence from India Using Dynamic Panel Data Analysis

“…In 2013, India, as one of the developing nations, made the initial move for enforcing the mandatory quota for listed companies to have at least one female on the board as directors. This change in the corporate on having the mandatory appointment of a female director on the board raised an important question ‘Would this regulatory change on the appointment of at least one female director on the corporate board really improve the firm performance’ where researchers have offered varied arguments based on the different theories of corporate governance (Bhagat & Bolton, 2008; Brown & Caylor, 2006; Dalton et al, 1999; Kapil & Barick, 2018; Paniagua et al, 2018). Khan and Vieito (2013) and Bhattacharya et al (2018) highlighted that before the Companies Act, 2013, female representation on the corporate board of Indian listed companies was only 5%, and in 2018, 13% of notable increase in female representation was experienced.…”

“…Firms today are actively following the path of expansion that leads to corporate restructuring which directly and significantly impacts the firm performance (Mishra & Kapil, 2018a; Rani et al, 2014). With the rapid expansion of businesses, multinational firms/corporations (MNCs) are constantly contributing to the economic development of their nations and further expanding their geographical reach through various activities, for example, mergers and acquisitions (M&A) (Kapil & Barick, 2018; Tampakoudis et al, 2020) and joint venture in the developing economies (Chen et al, 2010; Gomes et al, 2011) as well as in the developed nations (Cooke, 2016; Ismail et al, 2015). M&As are the events affected by various determinants of the board, namely board size, different characteristics of the board members (age, job tenure, duality roles joined, education and gender, CEO characteristics (CEO remuneration, CEO education, CEO duality).…”