Please use this identifier to cite or link to this item: https://hdl.handle.net/10356/35556
Title: Market reactions and the role of corporate governance in mergers & acquisitions : evidence from Indian firms.
Authors: Lye, Charmian Hui Qin.
Tan, Hong Li.
Tran, Ngoc Quynh Huong.
Keywords: DRNTU::Business::Finance::Mergers and acquisitions
Issue Date: 2010
Abstract: The importance of Merger and Acquisitions (M&A) as a strategy to pursue organizational objectives is evident by its increase over the years. This paper aims to analyze the M&A landscape in India. Particularly, we want to study how the strategic M&A’s decision of acquiring firms is influenced by their pre-acquisition characteristics and how the market reacts to such a decision. Five corporate governance factors namely, proportion of independent directors, board size, Chairman-CEO duality, board activities, CEO tenure and number of board meetings were used as predictors to determine whether the company is likely to pursue a focused or diversified acquisition. This is coupled with three financial factors: leverage, cashflow and profitability as control variables. The final result of this study may provide valuable insights to managers in ensuring a balanced focus on these factors in managing a firm. The statistical analyses reaffirmed our main hypothesis that focused acquisitions lead to positive market reaction. In addition, companies with high proportion of independent directors, Chairman-CEO duality, high leverage and high profitability are more likely to conduct focused acquisition.
URI: http://hdl.handle.net/10356/35556
Rights: Nanyang Technological University
Fulltext Permission: restricted
Fulltext Availability: With Fulltext
Appears in Collections:NBS Student Reports (FYP/IA/PA/PI)

Files in This Item:
File Description SizeFormat 
b4732.pdf
  Restricted Access
642.41 kBAdobe PDFView/Open

Page view(s) 20

286
checked on Oct 26, 2020

Download(s) 20

4
checked on Oct 26, 2020

Google ScholarTM

Check

Items in DR-NTU are protected by copyright, with all rights reserved, unless otherwise indicated.