Impact of Growth in the Indian Economy and Financial Markets on M and A Deals during the Last Decade

Abstract

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The research aims to evaluate the impact of economic and financial markets’ growth on mergers and acquisitions (M&As) during the last decade in India, i.e., from Q-1 of the calendar year 2011 until Q-1 of the calendar year 2021. In recent years, the M&A space has witnessed considerable activity, owing to economic reforms and preference of M&A route by promoters of Indian companies for expansion or bail-out. External data (secondary research) with respect to the growth of financial markets, economy and M&A deals in India has been collected from Bloomberg, IMAA, and NSE. Statistical tools, like the t-test will be used to analyse the impact of independent variables (growth of financial markets and economy) on the dependent variable, viz. M&A deals, over the last decade. Results of the study are expected to validate the positive correlation between economy/financial markets and M&A deals. The results would also help in developing a better understanding of the M&A scenario in India, and how certain changes in the economic and market environment influence it. The paper attempts to determine the degree of impact of GDP growth and financial markets on M&A deals. It would also seek to organise the theoretical context clearly, recognising any new patterns, while essentially being based on the existing important academic theories.

Keywords: Mergers, Acquisitions, M&A Deals, Economy, GDP Growth, Financial Markets

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