scholarly journals How have Mergers and Acquisitions Affected Financial Performance of Firms in Indian Manufacturing Sector?

2019 ◽  
Vol 12 (23) ◽  
pp. 79-96
Author(s):  
Pulak MISHRA ◽  
Keyword(s):  
Mergers And Acquisitions ◽  
Financial Performance ◽  
Manufacturing Sector ◽  
Indian Manufacturing Sector

Are Mergers and Acquisitions Necessarily Anti-competitive? Empirical Evidence from India’s Manufacturing Sector

2018 ◽  
Vol 12 (3) ◽  
pp. 276-307 ◽  
Author(s):  
Pulak Mishra
Keyword(s):  
Mergers And Acquisitions ◽  
Present Article ◽  
Manufacturing Sector ◽  
Capital Intensity ◽  
Jel Classification ◽  
Foreign Firms ◽  
Regulatory Changes ◽  
Reform Period ◽  
Indian Manufacturing Sector ◽  
The Impact

Policy initiatives and regulatory changes made during the last two-and-half decades of economic reforms have led to a considerable increase in the number of mergers and acquisitions (M&As) in the Indian corporate sector. Given the policy-induced flexibilities, while the domestic firms have taken the route of mergers to restructure their business and grow, the foreign firms have preferred to enter into specific markets through acquisitions and raise monopoly power therein. In this context, the present article attempts to examine the impact of M&As on market the structure in major industries of the Indian manufacturing sector during the post-reform period. Using a panel dataset of 34 major industries for the period 2001–2009, the article finds that M&As do not necessarily cause any appreciable adverse impact on market concentration. Instead, the degrees of sellers’ concentration are influenced by the growth of market, capital intensity, firms’ advertising efforts and their financial performance. The findings of the present article, therefore, suggest for a rethink on policies and regulations relating to M&A, international trade and intellectual property, as they play a significant role in enhancing firms’ competitiveness and restricting the emergence of a monopolistic power. JEL Classification: L1, L4, L5, O3

scholarly journals Mergers, Acquisitions and the Financial Performance: An Empirical Analysis from Indian Manufacturing Sector

2021 ◽  
Vol 17 (01) ◽  
Author(s):  
Kamal deep Kaur Sarna
Keyword(s):  
Financial Performance ◽  
Manufacturing Sector ◽  
Principal Component Regression ◽  
Principal Component ◽  
Strategic Fit ◽  
Paired Samples ◽  
Acquiring Firms ◽  
Before And After ◽  
Return On Capital ◽  
Indian Manufacturing Sector

Mergers and Acquisitions (MandA) are one of the most preferred strategies of corporate restructuring across the globe. Companies opt for MandA as they tend to generate operational synergies as well as improve the financial performance of the firms. The present study evaluates the financial performance of fifty four acquiring manufacturing firms in India that occurred between the financial year 2006-07 and 2013-14. The study follows positivist approach with focus on quantitative analysis of financial data over the period of ten years (five years pre and five years post) for five parameters. Determinants of financial performance of acquiring firms before and after the MandA have also been examined. Paired Samples t-test, Principal Component Analysis and Principal Component Regression have been employed for the analysis. Findings suggest that profitability and cost of utilization significantly decline after MandA. Efficiency, Profit Margin, Cost of Utilization, Interest Cover have remained significant factors contributing to the Return on Capital Employed both pre and post MandA. Failure of MandA in creation of synergies in Indian manufacturing sector suggests lack of strategic fit between the firms. It is important for managers to clearly define the motives behind the MandA not just for growth but survival as well.

Impact of Corporate Governance on the Cash Holding of the Firms: An Empirical Study of Indian Manufacturing Sector

GIS Business ◽  
2017 ◽  
Vol 12 (4) ◽  
pp. 47-52
Author(s):  
Karam Pal Narwal ◽  
Sonia Jindal
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Manufacturing Sector ◽  
Control Variable ◽  
Cash Holding ◽  
Executive Directors ◽  
Control Effect ◽  
Board Size ◽  
Indian Manufacturing Sector ◽  
The Impact

The paper empirically examines the impact of corporate governance on the cash holding of the firms. The components of corporate governance are measured by board size, board meeting, audit committee members, directors remuneration and non executive directors and the cash holding is measured with the log of average cash and size is taken as control variable for the control effect on the dependent variables. Moreover, correlation and panel regression model were employed to examine the relationship between the corporate governance and cash holding. Empirical data was collected from 96 firms over the period of 2004-05 to 2013-14. The results show that directors remuneration and the number of audit committee members positively influence the cash holding and the board size also positively influences the cash holding whereas, the non executive directors and the board meetings do not play any role in enhancing the cash holding.

Pengaruh Financial Leverage terhadap Financial Performance pada Sektor Industri Manufaktur yang Terdaftar di Bursa Efek Indonesia (BEI) Periode 2015

2018 ◽  
Vol 9 (2) ◽  
pp. 33-48
Author(s):  
Rivaldy Februansyah ◽  
Ika Yanuarti
Keyword(s):  
Financial Performance ◽  
Manufacturing Sector ◽  
Linear Regression Analysis ◽  
The Other ◽  
Debt Ratio ◽  
Financial Leverage ◽  
Coverage Ratio ◽  
Equity Ratio ◽  
Internal Fund

The manufacturing sector is one of the most dominant economic sectors in in achieving growth and development in Indonesia. It needs adequate fund to develop its business. The sources of fund are from internal and external. The firm usually optimized the usage of internal fund prior to external fund. The internal fund comes from equity while the external funds are from debt and stock. Debt is also known as financial leverage. There is a phenomenon that the usage of debt increased the firm’s financial performance, since interest on debt could lower the payment of tax (tax shield). On the other side, the higher the financial leverage the higher the risk of bankruptcy. This research aims to analyze whether financial leverage has an influence on financial performance in the manufacturing sector listed on the Indonesia Stock Exchange (IDX) period 2015. The method of analysis used in this research is multiple linear regression analysis. This research uses quantitative approach with a sample of 140 listed companies in the manufacturing industry. The firm’s financial performance could be measured by the financial ratios. Financial Leverage ratios are ratios that measure the ability of firm’s to meet its financial obligation and the level of usage debt as compared to equity. There are several financial leverage ratios that used in this research, such as Debt Ratio (DR), Debt to Equity Ratio (DER), Interest Coverage Ratio (ICR), and Long Term Debt Ratio (LTDR). Financial performance indicates the ability of firm to generate profit and measured by Profitability Ratio. Return on Asset (ROA) is one of the Profitability Ratio. The statistical result shows that Debt Ratio (DR) negatively affect Return on Asset (ROA) and Interest Coverage Ratio (ICR) positively affect Return on Asset (ROA). Meanwhile, Debt to Equity Ratio (DER) and Long Term Debt Ratio (LTDR) did not affect Return on Asset (ROA). On the other hand, result shows that Debt Ratio (DR), Debt to Equity Ratio (DER), Interest Coverage Ratio (ICR), and Long Term Debt Ratio (LTDR) affect Return on Asset (ROA) simultaneously. Keywords: Financial Leverage, Debt Ratio (DR), Debt to Equity Ratio (DER), Interest Coverage Ratio (ICR), Long Term Debt Ratio (LTDR), Financial Performance, Return on Assets (ROA)

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