Growing through M&A: Impact Analysis of Acquisitions in IT Industry
Published: 2017
Author(s) Name: Mayank Mathur |
Author(s) Affiliation: Executive Fellowship Program in Management Scholar, IIM Lucknow, Uttar Pradesh, India
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Abstract
To understand the performance
of firms post-M&As an empirical
study is done using a derived regression
model based on the financial
and firm level economic
data for the leading IT or ITeS
industries. The effort is to determine
the relationship of the M&As
to the firms profitability. This
study arrives at a model to determine
the effect of M&As on the
economic factors like ROA and
CAR of the firms. The evidence is
to support that M&As are not a
solution to the financial distress
in corporate organizations. The
research revealed that while
M&As can drive profitability in
some organizations, operating efficiency
suffers at least in the
short-term in the post- M&A corporate
entity.
Keywords: N.A.
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