• #0 (no title)
  • #0 (no title)
  • About
  • Facebook
  • Twitter
  • RSS
(As ISO 9001:2015 Certified Publications)
    • Quick Search
    • Advanced Search
  • Home
  • Editorial Policy
  • Author Guidelines
  • Submission
  • Copyright Form
  • Career
  • Contact us
  • Subscription

Back to Journal

Home»Articles»Creating Wealth for Shareholders: Evaluating the Performance of Merging Companies

JournalCover

Asian Journal of Managerial Science (AJMS)

Editor Dr. Tan Fee Yean
Print ISSN : 2249 - 6300
Frequency : Quarterly

Creating Wealth for Shareholders: Evaluating the Performance of Merging Companies

Author : V. Shanthaamani and V. B. Usha
Volume 8 No.1 January-March 2019 pp 6-10

Abstract

Mergers and Acquisitions as business strategies are widely used to increase the wealth of shareholders and the corporate performance. Shareholders wealth may be influenced by many factors such as the corporate performance, deal type, geographic location of the company and so on. The study is conducted with three main objectives of assessing the impact of merger announcements on merging companies’ share prices, analyse the nature of shareholders’ returns of the merging companies and assess the determinants of shareholders returns. NSE listed companies which have made merger announcements during the period of 1st January 2012 to 31st December 2017 shall constitute the sample population for the research, while 40 merger announcements of computer software industry have been taken as sample size. Mean adjusted model has been used for calculating the abnormal returns while the statistical tools of paired samples t-test, ANOVA and multiple regressions have been used for analyzing data. Results of the research reveal that merger announcements exert significant impact on share prices. Further, shareholders wealth has witnessed an increase after the merger announcements. Finally, shareholders wealth has not been affected by the company’s performance.

Keywords

Computer Software Industry, Mergers, Mean Adjusted Abnormal Returns

Full Text:

References

[1] Anand, M. & Singh, J. (2008). Impact of Merger Announcements on Shareholders Wealth: Evidence from Indian Private Sector Banks. Vikalpa, 33(1). 35-54.
[2] Banerjee, P., P. Banerjee, S. De, J. Jindra, & J. Mukhopadhyay. (2014). Acquisition pricing in India during 1995-2011: Have Indian acquirers really beaten the odds? Journal of Banking & Finance, 38, 14-30.
[3] Bednarczyk, T. P., Schiereck, D. & Walter, H.N. (2010). Cross-border acquisitions and shareholder wealth: Evidence from the energy and industry in Central and Eastern Europe. Journal for East European Management Studies, 106-127.
[4] Brown S. & Warner J. (1985). Using daily stock returns: the case of event studies. Journal of Financial Economics, 14, 3-31.
[5] Delaney, T. & Wamuziri, S. C., (2004). The impact of mergers and acquisitions on shareholder wealth in the UK construction industry. Engineering, Construction and Architectural Management, 11(1), 65-73.
[6] Jayaraman, N., Khorana, A. and Nelling, E. (2002). An analysis of the determinants and shareholder wealth effects of Mutual Fund mergers. The Journal of Finance, 1521-1551.
[7] Jagtiani, Julapa & Kotliar, Ian & Maingi, Raman Quinn. (2016). Community bank mergers and their impact on small business lending. Journal of Financial Stability. Elsevier, 27(C), 106-121.
[8] Kumar, R. (2009). Post-merger corporate performance: An Indian perspective. Management Research News, 32(2), 145-157.
[9] Liargovas, P. and Repousis, S. (2011). The impact of Mergers and Acquisitions on the performance of the Greek Banking Sector: An Event Study Approach. International Journal of Economics and Finance, 3(2), 89-100.
[10] Mann, B. and Kholi, R. (2011). Target shareholders wealth creation in domestic and cross-border acquisitions in India. International Journal of Commerce and Management. 21(1). 63-81.
[11] Rahim, N. M. & Ching Pok, W. (2013). Shareholder wealth effects of M & As: the third wave from Malaysia. International Journal of Managerial Finance, 9(1).
[12] Shobhana, V.K. and Deepa, N. (2012). Impact of Mergers and Acquisitions on the shareholder wealth of the select acquirer banks in India: An Event Study Approach. The IUP Journal of Bank Management, 11(2). 26-31.
[13] Shukla, A. and Gekara, M.G. (2010). Effects of Multinational Mergers and Acquisitions on Shareholders Wealth and Corporate Performance. The IUP Journal of Accounting Research & Audit Practices, 9(1 & 2), 44-62.
[14] Venkatesan, S. and Govindarajan, K. (2011). Acquisition Activities of Public Sector Banks in India and its impact on Shareholders Wealth. International Research Journal of Finance and Economics, 67, 63-71.

Asian Journal of Managerial Science (AJMS) is a quarterly international peer-reviewed journal of Managerial Science. One of the objectives of this journal is to disseminate knowledge on various research issues connected with the topics include, but are not limited to:

Accounting, Auditing, Banking, Business strategy, Corporate governance, Entrepreneurship, Financial structure, Capital markets, Health economics, Human resources management, Information systems,Innovation management, Insurance, Marketing, Organization, Production and logistics, Risk management, and Taxation.

Mergers and Acquisitions as business strategies are widely used to increase the wealth of shareholders and the corporate performance. Shareholders wealth may be influenced by many factors such as the corporate performance, deal type, geographic location of the company and so on. The study is conducted with three main objectives of assessing the impact of merger announcements on merging companies’ share prices, analyse the nature of shareholders’ returns of the merging companies and assess the determinants of shareholders returns. NSE listed companies which have made merger announcements during the period of 1st January 2012 to 31st December 2017 shall constitute the sample population for the research, while 40 merger announcements of computer software industry have been taken as sample size. Mean adjusted model has been used for calculating the abnormal returns while the statistical tools of paired samples t-test, ANOVA and multiple regressions have been used for analyzing data. Results of the research reveal that merger announcements exert significant impact on share prices. Further, shareholders wealth has witnessed an increase after the merger announcements. Finally, shareholders wealth has not been affected by the company’s performance.

Editor-in-Chief
Dr. Tan Fee Yean
Department of HRM, Universiti Utara Malaysia, Kedah, Malaysia
[email protected]
Editorial Advisory Board
Dr. Aidil Rizal Bin Shahrin
Department of Finance and Banking, University of Malaya, Malaysia
[email protected]
Dr. Amalendu Bhunia
Department of Commerce, University of Kalyani, West Bengal, India
[email protected]
Dr. Ahmad Zahiruddin Bin Yahya
Department of Accountancy, University of Malaya, Malaysia
[email protected]
Dr. Anil Govindrao Suryavanshi
Department of Commerce & Management, The New college, (Shivaji University), Maharashtra, India
[email protected]
Dr. Ong Lin Dar
Department Of Business Strategy And Policy, University of Malaya, Malaysia
lindar[email protected]
Dr.V.Balachandran
Department of Corporate Secretaryship, Alagappa University,Tamil Nadu, India
[email protected]
Dr. Yeong Wai Chung
Department Of Operation and Management Information, University of Malaya, Malaysia
[email protected]
Prof.V.V.Devi Prasad Kotni
Department of Management Studies,GVP College for Degree & PG Courses, Andhra Pradesh, India
[email protected]
Dr. Quah Chee Heong
Department of Business Strategy and Policy, University of Malaya, Malaysia
[email protected].edu.my
Dr.Subrata Roy
Department of Commerce, Rabindra Mahavidyalaya, West Bengal, India
[email protected]
Dr. Norbani Binti Che Ha
Department of Marketing, University of Malaya, Malaysia
[email protected]
Dr. Tey Lian Seng
Department Of Business Strategy and Policy, University of Malaya,  Malaysia
[email protected]
Dr. Mohammad Nazri Bin Mohd Nor
Department of Business Strategy and Policy, University of Malaya, Malaysia
[email protected]
Dr. Binish Qadri
Research Scholar, Department of Economics, Central University of Kashmir, India
[email protected]
Dr. Khaw Lee Hwei
Department of Finance and Banking, University of Malaya, Malaysia
[email protected]
Dr. V. P. Sriram
Department of Management, Balaji Institute of International Business, Maharashtra, India
[email protected]
Dr. Yusniza Binti Kamarulzaman
Department of Marketing, University of Malaya,  Malaysia
[email protected]
Dr. Kanagi Kanapathy
Department of Operations and Management Information Systems, University of Malaya, Malaysia
[email protected]
Dr. Abd El Salam Mahmoud Abou Kahf
Department of Commerce, Alexandria University, Egypt
[email protected]
Dr. Wong Sek Khin
Department of Business Strategy and Policy, University of Malaya, Malaysia
[email protected]
Dr. Lee Su Teng
Department of Business Strategy and Policy, University of Malaya, Malaysia
[email protected]
Dr. Phoong Seuk Wai
Department of Operation and Management Information System, University of Malaya, Malaysia
[email protected]edu.my
Dr. Dennis Palkon
College of Business, Management, Florida Atlantic University
[email protected]

2016

2015

2014

  • Results
  • Asian Review of Mechanical Engineering (ARME)
  • career

2013

  • Home
  • Shop
  • My Account
  • Logout
  • Contact us
  • The Asian Review of Civil Engineering (TARCE)

2012

  • Asian Journal of Electrical Sciences(AJES)
  • Asian Journal of Computer Science and Technology (AJCST)
  • Asian Journal of Information Science and Technology (AJIST)
  • Asian Journal of Engineering and Applied Technology (AJEAT)
  • Asian Journal of Science and Applied Technology (AJSAT)
  • Asian Journal of Managerial Science (AJMS)
  • Asian Review of Social Sciences (ARSS)

2011

2010

    Table of Contents

    Editorial Note

    Editorial Dr. Tan Fee Yean

    Editor-in-Chief
    Dr. Tan Fee Yean
    Department of HRM, Universiti Utara Malaysia, Kedah, Malaysia
    [email protected]
    Editorial Advisory Board
    Dr. Aidil Rizal Bin Shahrin
    Department of Finance and Banking, University of Malaya, Malaysia
    [email protected]
    Dr. Amalendu Bhunia
    Department of Commerce, University of Kalyani, West Bengal, India
    [email protected]
    Dr. Ahmad Zahiruddin Bin Yahya
    Department of Accountancy, University of Malaya, Malaysia
    [email protected]
    Dr. Anil Govindrao Suryavanshi
    Department of Commerce & Management, The New college, (Shivaji University), Maharashtra, India
    [email protected]
    Dr. Ong Lin Dar
    Department Of Business Strategy And Policy, University of Malaya, Malaysia
    [email protected]
    Dr.V.Balachandran
    Department of Corporate Secretaryship, Alagappa University,Tamil Nadu, India
    [email protected]
    Dr. Yeong Wai Chung
    Department Of Operation and Management Information, University of Malaya, Malaysia
    [email protected]
    Prof.V.V.Devi Prasad Kotni
    Department of Management Studies,GVP College for Degree & PG Courses, Andhra Pradesh, India
    [email protected]
    Dr. Quah Chee Heong
    Department of Business Strategy and Policy, University of Malaya, Malaysia
    [email protected].edu.my
    Dr.Subrata Roy
    Department of Commerce, Rabindra Mahavidyalaya, West Bengal, India
    [email protected]
    Dr. Norbani Binti Che Ha
    Department of Marketing, University of Malaya, Malaysia
    [email protected]
    Dr. Tey Lian Seng
    Department Of Business Strategy and Policy, University of Malaya,  Malaysia
    [email protected]
    Dr. Mohammad Nazri Bin Mohd Nor
    Department of Business Strategy and Policy, University of Malaya, Malaysia
    [email protected]
    Dr. Binish Qadri
    Research Scholar, Department of Economics, Central University of Kashmir, India
    [email protected]
    Dr. Khaw Lee Hwei
    Department of Finance and Banking, University of Malaya, Malaysia
    [email protected]
    Dr. V. P. Sriram
    Department of Management, Balaji Institute of International Business, Maharashtra, India
    [email protected]
    Dr. Yusniza Binti Kamarulzaman
    Department of Marketing, University of Malaya,  Malaysia
    [email protected]
    Dr. Kanagi Kanapathy
    Department of Operations and Management Information Systems, University of Malaya, Malaysia
    [email protected]
    Dr. Abd El Salam Mahmoud Abou Kahf
    Department of Commerce, Alexandria University, Egypt
    [email protected]
    Dr. Wong Sek Khin
    Department of Business Strategy and Policy, University of Malaya, Malaysia
    [email protected]
    Dr. Lee Su Teng
    Department of Business Strategy and Policy, University of Malaya, Malaysia
    [email protected]
    Dr. Phoong Seuk Wai
    Department of Operation and Management Information System, University of Malaya, Malaysia
    [email protected]
    Dr. Dennis Palkon
    College of Business, Management, Florida Atlantic University
    [email protected]

    Articles

Advanced Search

You can submit your research paper to the journal in just a few clicks. Please follow the steps outlined below: 1. Register your details and select to be an Author 2. Log in with your user name and password 3. ‘Start a new submission’ and follow these 5 steps:

[gravityform id="1" name="Registration" title="false" description="false"]

Privacy Statement

The names and email addresses entered in this journal site will be used exclusively for the stated purposes of this journal and will not be made available for any other purpose or to any other party.

Privacy Statement

The names and email addresses entered in this journal site will be used exclusively for the stated purposes of this journal and will not be made available for any other purpose or to any other party.

Lorem1 ipsum dolor sit amet, consectetur adipiscing elit. Nulla convallis ultricies scelerisque. Fusce dolor augue, sollicitudin eget lacus vitae, rutrum commodo lacus. Praesent ullamcorper facilisis dui. Sed suscipit id lorem ut dapibus. Integer dictum cursus nisl, quis ullamcorper augue. Sed non rutrum mauris. Maecenas in dolor est. Donec eget sagittis mi. Sed non leo eu odio mollis pulvinar vitae et leo. Integer eu feugiat tortor. Duis massa purus, eleifend id erat eget, hendrerit semper risus. Suspendisse cursus varius dapibus

Lorem1 ipsum dolor sit amet, consectetur adipiscing elit. Nulla convallis ultricies scelerisque. Fusce dolor augue, sollicitudin eget lacus vitae, rutrum commodo lacus. Praesent ullamcorper facilisis dui. Sed suscipit id lorem ut dapibus. Integer dictum cursus nisl, quis ullamcorper augue.

Subscription

Subscription (for 12 issues):
Rs. 5000; Overseas - USD 500;
Cheque drawn in favour of "Informatics Publishing Limited"
Click here to download online subscription form

Download

DD Mailing Address

Lorem1 ipsum dolor sit amet,
Lorem1 ipsum dolor sit amet,
Lorem1 ipsum dolor sit amet.

BACK TO TOP

Outstanding Scholars

The Journals honor Outstanding Scholars in various fields. Scholar of the Month should have contributed to their field and to the larger community. Recipients will be nominated by the Advisory Board and approved by the Editor-in-Chief of the allied journals published by The Research Publication. Scholar of the Month will be displayed in the web portal of the concerned journal.

Please send your brief write up to [email protected]

Editors and Reviewers

The Research Publication is seeking qualified researchers to join its editorial team as Associate Editor, Editorial Advisory Board Member, and Reviewers.
Kindly send your details to [email protected]

Call For Papers

Authors are requested to submit their papers electronically to [email protected] with mentioning the journal title.

Mailing Address

The Research Publication 1/611, Maruthi Nagar, Rakkipalayam Post, Coimbatore – 641 031, Tamil Nadu, India Phone No.: 0422 2461001

  • About
  • Editorial Policy
  • Author Guidelines
  • Contact us
  • Copyright
  • Facebook
  • Twitter
  • RSS

© 2015 The Research Publication. All rights reserved.

The Research Publication
  • Home
  • Editorial Policy
  • Author Guidelines
  • Submission
  • Copyright Form
  • Career
  • Contact us
  • Subscription