M&A Movements: An Analysis of Patterns of Indian Trends

2021 ◽  
pp. 097215092110457
Author(s):  
Minakshi Kar ◽  
Rabi Narayan Kar
Keyword(s):  
Mergers And Acquisitions ◽  
Common Factors ◽  
Economic Recession ◽  
Macroeconomic Factors ◽  
Industrial Landscape ◽  
Corporate Decisions ◽  
Cyclical Pattern ◽  
Cyclical Behaviour ◽  
The Waves ◽  
Recession Period

Indian industrial landscape had been completely redrawn by the forces of globalization, deregulation and unprecedented technological advancements for the last three decades. Corporate enterprises have responded to the competitive pressures unleashed by these forces through extensive repositioning activities involving corporate restructuring in general and mergers and acquisitions (M&As) in particular. This article has carried out a survey of Indian M&As for different industry groups by creating a database of 1990–2011 to find the presence of M&As waves in India. Empirical construct revealed the trends of Indian M&As for 24 industry groups and identified three distinct waves of M&As. The survey of Indian M&As has revealed that there was a significant reduction of Indian M&As in international deals than domestic deals during the economic recession period (2008–2009). Using VAR and VECM model, it emerged that M&As waves for different sectors of Indian industry move in the same cyclical pattern. Their behaviour, apparently independent corporate decisions, are most likely affected by the conditions of the economy, which may be changed by various macroeconomic factors which are in line with the findings of several other studies. This study contributes towards finding the answer to this question by establishing the underlying common factors that cause the cyclical behaviour in all the M&A waves. This article also establishes the basic interdependence and co-movements between the waves, and how this interdependence changed over time.

Do Institutional and Macroeconomic Factors Matter in IT companies M&As? Evidence from India

2020 ◽  
pp. 227853372096492
Author(s):  
Niti Bhasin ◽  
Amit Soni ◽  
Rabi Narayan Kar
Keyword(s):  
Mergers And Acquisitions ◽  
Negative Binomial ◽  
Random Effect ◽  
Economic Recession ◽  
Institutional Factors ◽  
Binomial Model ◽  
Indian Government ◽  
Macroeconomic Factors ◽  
Institutional Determinants ◽  
Set Up

The liberalisation of the Indian economy, along with targeted policies of the Indian government for the information technology (IT) sector, has led to tremendous growth in this sector. While there has been substantial foreign investment in India in the IT sector through setting up of subsidiaries, joint ventures and acquisitions, Indian firms have also aggressively invested within and outside India through multiple modes. Among different sectors, the IT sector has been the most dominant in terms of mergers and acquisitions (M&As). This article focuses on host country (macroeconomic and institutional) determinants of M&As undertaken by Indian IT firms. Random effect negative binomial model in panel set up was selected to estimate the models. Four models were estimated as per the availability of data for 35–42 countries and for the period 2000–2015. The results for most of the variables in four models were very similar, reflecting robustness of the methodology. Most of the macroeconomic and institutional factors were found to be important determinants of the M&As by Indian IT companies. However, the economic recession of 2008–2009 was found to significantly reduce the M&A activities by Indian IT companies.

scholarly journals What Drives Cross-Border Mergers and Acquisitions and Greenfield Foreign Direct Investment Capital Flows? Reconsideration in the Case of the Selected Former Yugoslav Countries

2021 ◽  
Vol 32 (3) ◽  
pp. 234-246
Author(s):  
Ksenija Denčić-Mihajlov ◽  
Vinko Lepojević ◽  
Jovana Stojanović
Keyword(s):  
Mergers And Acquisitions ◽  
Developing Economies ◽  
Random Effect ◽  
Random Effect Model ◽  
Foreign Direct Investments ◽  
Macroeconomic Factors ◽  
Fdi Inflows ◽  
Cross Border ◽  
Data Framework ◽  
The Impact

Bearing in mind the different nature and the impact of various types of foreign direct investments (FDI) on the one hand, and the specific macroeconomic environment in the post-socialist countries on the other hand, in this paper we reexamine the selected macroeconomic factors that affect the two types of FDI inflows (cross-border mergers and acquisitions and greenfield FDI) in four countries of the former Socialist Federal Republic of Yugoslavia. The study employs the balanced panel data framework and covers twelve-year period (2006-2017). Having performed the Hausman test, we use the random effect model and provide evidence that: (1) the key FDI macroeconomic determinants in stable business conditions, examined in numerous research studies, can have a different impact on FDI in times characterized by unstability and financial crisis, (2) some determinants of FDI inflows have different importance and direction in the case of cross-border M&A and greenfield FDI. Our findings are relevant for policymakers who should reconsider the key factors that fuel the FDI inflows towards their developing economies.

scholarly journals The Development of Housing Sector and Residential Real Estate Market After Economic Recession in Latvia

2015 ◽  
Vol 3 (1) ◽  
pp. 103-119 ◽  
Author(s):  
Sanda Geipele ◽  
Armands Auziņš
Keyword(s):  
Sustainable Development ◽  
Real Estate ◽  
Institutional Environment ◽  
Economic Recession ◽  
Real Estate Market ◽  
Housing Sector ◽  
Residential Real Estate ◽  
The Public ◽  
Efficient Management ◽  
Recession Period

Abstract The study is concerned with an examination of resource distribution in order to promote sustainable development of housing sector in the context of evolving residential real estate market after the economic recession period in Latvia. The statistical and comparative analysis methods have mainly been applied in the study, and the recommendations on the implementation of conceptual solutions for promoting the efficient management of housing sector according to the public needs have been provided. The findings of the study may significantly contribute when improving the housing policy and appropriate institutional environment in Latvia.

scholarly journals Behavioral analysis of mergers and acquisitions decisions

2019 ◽  
Vol 15 (3) ◽  
pp. 8-16 ◽  
Author(s):  
Daisuke Asaoka
Keyword(s):  
Decision Making ◽  
Mergers And Acquisitions ◽  
Conflicts Of Interest ◽  
Fair Value ◽  
Endowment Effect ◽  
Strategic Decisions ◽  
Corporate Decisions ◽  
Decision Making Processes ◽  
High Degree ◽  
Governance Architecture

Mergers and acquisitions (M&A) are among the key strategic decisions that firms make. But the problem is that they often result in failure and impairment loss, with the fair value of the acquisition price becoming an issue that poses the risk of overvaluation. The purpose of this paper is to explain the nature of this risk by shedding light on the errors and biases of decision-making managers and directors and their effect on decision-making processes which involve a high degree of discretion and judgment. The paper finds that biases causing overvaluation include overconfidence by managers; an escalation of bidding prices leading to winner’s curse; anchoring in pricing; the endowment effect; and hindsight and confirmation biases. Corporate governance architecture can be designed to mitigate these biases while preserving the positive aspects of overconfidence, such as its promoting of productive and creative activities and coherent internal management. But it is not a panacea since independent directors also have biases and conflicts of interest inherent in the mechanism. Advancements in the understanding of human emotion and psychology promise to protect shareholders by deepening our understanding of corporate decisions.

scholarly journals THE PRO-CYCLICALITY OF LOAN LOSS PROVISIONS: EVIDENCE FROM SELECTED EAST ASIAN COUNTRIES

2017 ◽  
Author(s):  
Azira Abdul Adzis
Keyword(s):  
Financial Crises ◽  
East Asian ◽  
Negative Relationship ◽  
Asian Financial Crisis ◽  
Asian Countries ◽  
Loan Loss ◽  
Loan Loss Provision ◽  
Loan Loss Provisions ◽  
Cyclical Pattern ◽  
Cyclical Behaviour

This study investigated the evidence of pro-cyclical behaviour of loan loss provision in four East Asian countries, namely Malaysia, Thailand, Singapore, and Hong Kong for the period 1995-2009. Pro-cyclical is defined as building up more loan loss provision during the bad times and reducing them in good times. This study hypothesized that pro-cyclical behaviour of loan loss provision exists in East Asian countries, since they had experienced two types of financial crises – Asian financial crisis in 1997 and global economic crisis in 2008. Utilising a sample of 47 banks, the findings demonstrated that there is evidence of a pro-cyclical pattern in the countries studied, as shown by the negative relationship between loan loss provision and GDP. This study does have a policy implication, where bank regulators should take pro-active action in addressing the issue of pro-cyclicality of loan loss provision because in bad times, increasing loan loss provision would affect the bank’s profit, weaken the bank’s capital, and in turn, diminish its lending activities to creditworthy borrowers. Keywords: Pro-cyclical, Loan loss provision, Malaysian bank

scholarly journals Development of mergers and acquisitions in the conditions of the Czech economy 2001–2010

2011 ◽  
Vol 59 (7) ◽  
pp. 337-346 ◽  
Author(s):  
Jaroslav Sedláček ◽  
Zuzana Křížová ◽  
Eva Hýblová
Keyword(s):  
Mergers And Acquisitions ◽  
Global Economy ◽  
External Environment ◽  
Economic Recession ◽  
Factors Affecting ◽  
The Past ◽  
Macroeconomic Indicators ◽  
First Results ◽  
The Usa ◽  
Regulatory Bodies

This paper presents the first results of a research project which has the aims to identify the problems appearing during the preparation of mergers in compliance with valid Czech regulations and to analyze economic causes and consequences of mergers. At the first stage it was necessary to compile a basic dataset in a structure needed for a statistical analysis. The aim of the analysis presented in this paper is to ascertain, both theoretically and empirically, how the external environment affected the development of mergers of trading companies in the conditions of the Czech economy. The covered period is the past ten years, i.e. 2001–2010, when the development of the global economy was affected by the bank crisis in the USA and the economic recession. The analysis of the development of mergers and acquisitions focuses on three groups of factors affecting activities in the field of company combinations. These are mergers and acquisitions which are subject to approval by regulatory bodies, the effect of new regulations of financing (financial factors) and the effect of the macroeconomic situation in the form of GDP indicator and PX index. Macroeconomic indicators are related to mergers whose development has not been published or explored within scientific research. The results of the analysis allowed us to describe the dependence of activities in the field of company mergers which took place in the Czech Republic in the past decade on the selected factors of the external environment.

Employment and suicidal rates during economic recession: A country-targeted integrative review

2020 ◽  
pp. 002076402096974
Author(s):  
Apostolos Kamekis ◽  
George Rachiotis ◽  
Adelais Markaki ◽  
Vasiliki Samara ◽  
Emmanouil K. Symvoulakis
Keyword(s):  
Economic Crisis ◽  
Economic Recession ◽  
Mortality Rates ◽  
Integrative Review ◽  
Suicide Mortality ◽  
Greek Language ◽  
Enabling Factors ◽  
Suicide Rates ◽  
Reported Data ◽  
Recession Period

Background: The economic crisis’ effects on suicide rates for countries undergoing or exiting austerity measures have been widely debated. This integrative review aimed to identify, appraise, and synthesize available evidence of employment status effect on suicide mortality rates in Greece during the recent economic recession period. Methods: A literature review of studies evaluating suicides in the general Greek population, as well as across age and gender groups, in relation to employment during the economic crisis period was performed. PubMed electronic database was searched for relevant articles published in English or Greek language from 2009 up to February 2020. Appraisal was carried out based on the Hierarchy of Evidence Rating System and the GRADE guidelines. Results: A total of 24 articles met all inclusion criteria with 20 of them at level IV, 2 at level VII, and 2 at level VIII. A total of 18 studies reported increase of suicide rates during the economic recession period. About 12 studies examined the co-relation between unemployment and suicide rate, with ten studies showing a positive correlation. Moreover, thirteen studies reported data on the effect of gender and age variables on suicide rates. Conclusion: Evidence shows that suicide mortality rates in Greece increased after the eruption of economic recession, particularly after the implementation of radical austerity measures (2011–2014). This increase was positively correlated with unemployment and was more prominent among males of working age. Further in depth epidemiological research of regional variations in terms of profile and contributing or enabling factors of suicidal behavior is needed.

scholarly journals Modeling of a Small Transportation Company’s Start-Up with Limited Data during Economic Recession

2013 ◽  
Vol 2013 ◽  
pp. 1-10 ◽  
Author(s):  
Xiaoping Fang ◽  
Jake Ansell ◽  
Weiya Chen
Keyword(s):  
Regression Model ◽  
Goodness Of Fit ◽  
Time Lag ◽  
Economic Recession ◽  
Ratio Method ◽  
Limited Data ◽  
Growth Trend ◽  
Macroeconomic Factors ◽  
Start Up ◽  
Simple Regression Model

This paper presents a modeling method for analyzing a small transportation company’s start-up and growth during a global economic crisis which had an impact on China which is designed to help the owners make better investment and operating decisions with limited data. Since there is limited data, simple regression model and binary regression model failed to generate satisfactory results, so an additive periodic time series model was built to forecast business orders and income. Since the transportation market is segmented by business type and transportation distance, a polynomial model and logistic curve model were constructed to forecast the growth trend of each segmented transportation market, and the seasonal influence function was fitted by seasonal ratio method. Although both of the models produced satisfactory results and showed very nearly the same of goodness-of-fit in the sample, the logistic model presented better forecasting performance out of the sample therefore closer to the reality. Additionally, by checking the development trajectory of the case company’s business and the financial crisis in 2008, the modeling and analysis suggest that the sample company is affected by national macroeconomic factors such as GDP and import & export, and this effect comes with a time lag of one to two years.

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