Measuring Post-Merger and Acquisition Performance in Cement Sector of India

Bisma Afzal Shah

Abstract


The present study has been carried out with the aim of assessing the impact of mergers and acquisitions on the value of listed firms in Cement sector of India. Mergers and acquisitions have become common business tools, implemented by thousands of companies all over the world. Mergers and acquisitions are used as a means to achieve crucial growth and are becoming more and more accepted as a means for implementing business strategy, whether they involve Indian companies wanting to expand or foreign companies wishing to acquire market share in India. Driven by a philosophy of creating shareholder value, they not only form a new economic, social and cultural environment, but also enable companies to grow faster than competitors and has thus acquired a prominent position in the corporate sector since 60’s throughout the world. The primary objectiveof the present study is to assess the impact of merger and acquisition deals on the operating performance, financial performance and shareholders’ wealth of the samplefirms by comparing their performance before and after the deals. In order to achieve the research objectives, industry adjusted pre and post-merger/ acquisition financial ratios have been estimated and the averages have been computed for all the firms undertaken for the study. Paired sample t-test has been done to check for any statisticallysignificant differencebetween the means pre and post the deals. Overall, the study revealed mixed results with respect to its overall impact on the performance of the firms undertaken for the study.

Keywords: Mergers and Acquisitions, Financial Ratios, Operating Performance, Financial Performance, Shareholders Wealth

How to cite this article: Shah BA. Measuring Post-Merger and Acquisition Performance in Cement Sector of India. J Adv Res Acct Fin Mgmt 2019; 5(1&2): 8-15.


Keywords


Mergers and Acquisitions, Financial Ratios, Operating Performance, Financial Performance, Shareholders Wealth

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References


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