Paradigm Shift of India Companies under Global Uncertainty: Evidence from Trend, Motive and Impact Analysis of Mergers and Acquisitions in IT Sector

The reforms process in India has helped Indian Information Technology sector to gain competitive edge in the world market. With this gain in competitive edge, IT companies experienced foreign sector led rapid organic and inorganic growth. However, the sub-prime crisis of 2008-2009 not only caused decline in the inorganic investment but also caused shift of preference from international sector to domestic sector. This study provides evidences of paradigm shift of Indian IT companies through trend and motives analysis of Mergers and Acquisitions (MandAs) in the post-liberalisation period. The study also examines the long term impact of domestic MandAs on financial performance through multivariate regression technique. The results of impact analysis can throw some light on the strategic acumen of Indian IT companies.

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Assessing the Impact of Mergers and Acquisitions on Firm Performance: Evidence from India

FOCUS Journal of International Business ◽

10.17492/focus.v1i1.2474 ◽

2014 ◽

Vol 1 (1) ◽

Cited By ~ 1

Author(s):

Rabi Narayan Kar ◽

Amit Soni ◽

Chandan Kumar Singh

Keyword(s):

Mergers And Acquisitions ◽

Large Body ◽

Financial Accounting ◽

Policy Regime ◽

Accounting Data ◽

Net Worth ◽

Indian Context ◽

Long Term Impact ◽

The Impact

The issue regarding why corporate enterprises engage in mergers and acquisitions (M&As) has become the centre of a large body of corporate finance literature in recent years. In the Indian context, the deregulated policy regime started in 1991 has significantly contributed to the increase in M&A activity. This paper is aimed at examining the long-term impact following M&As of listed Indian enterprises in the post-liberalisation period by using financial accounting data. Throughout the period of study, turnover increased after the companies experienced an M&A which is in line with the findings that Indian companies grew in size and attained bigger market share. M&As did not have any impact on return on net worth for the period of study. Mixed results have been reported for other variables.

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Understanding the Paradigm Shift in Strategy of M&As in India in a Volatile Period Through Motive Analysis: Evidences from the IT Industry

Global Business Review ◽

10.1177/0972150919879299 ◽

2019 ◽

pp. 097215091987929

Author(s):

Amit Soni ◽

Rabi N. Kar ◽

Niti Bhasin

Keyword(s):

Paradigm Shift ◽

Reform Process ◽

Subprime Crisis ◽

It Industry ◽

Competitive Edge ◽

Cross Border ◽

Reform Period ◽

Merger And Acquisitions ◽

International Sector

The reform period in India led to corporate restructuring, including mergers and acquisitions (M&As). Specifically, the reform process helped the Indian information technology (IT) sector to gain a competitive edge. With the gain in competitive edge, IT companies experienced the foreign-led rapid organic and inorganic growth. However, the subprime crisis of 2008–2009 not only caused a decline in inorganic investment but also caused a shift in preference from the international sector to the domestic sector. This study provides evidence of the paradigm shift in merger and acquisitions (M&A) strategies of Indian IT companies through motive analysis (2000–2015). In that context, this article explores the trend and pattern of motives for both domestic and cross-border M&As (CBMAs) by Indian IT firms and specifically seeks to investigate the main motives of CBMAs. The empirical evidence suggests a marked difference and dynamism in the pattern of motives for domestic and CBMAs across different sub-time periods. Furthermore, it indicates that the market and efficiency-seeking motives seem to be the dominant drivers of IT sector firms for emerging countries like India, whereas the role of efficiency-seeking motive became more prominent after the period of subprime crisis.

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Crisis Phones - Suicide Prevention Versus Suggestion/Contagion Effects

Crisis ◽

10.1027/0227-5910/a000313 ◽

2015 ◽

Vol 36 (3) ◽

pp. 220-224 ◽

Cited By ~ 3

Author(s):

Steven Stack

Keyword(s):

Suicide Prevention ◽

Contagion Effects ◽

Long Term Impact

Abstract. Background: There has been no systematic work on the short- or long-term impact of the installation of crisis phones on suicides from bridges. The present study addresses this issue. Method: Data refer to 219 suicides from 1954 through 2013 on the Skyway Bridge in St. Petersburg, Florida. Six crisis phones with signs were installed in July 1999. Results: In the first decade after installation, the phones were used by 27 suicidal persons and credited with preventing 26 or 2.6 suicides a year. However, the net suicide count increased from 48 in the 13 years before installation of phones to 106 the following 13 years or by 4.5 additional suicides/year (t =3.512, p < .001). Conclusion: Although the phones prevented some suicides, there was a net increase after installation. The findings are interpreted with reference to suggestion/contagion effects including the emergence of a controversial bridge suicide blog.

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The Long-Term Impact of Preschool Prevention Programs: A Commentary.

Prevention & Treatment ◽

10.1037/1522-3736.6.1.632c ◽

2003 ◽

Vol 6 (1) ◽

Cited By ~ 2

Author(s):

Joseph A. Durlak

Keyword(s):

Prevention Programs ◽

Long Term Impact

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Long-Term Impact of Participation in the Adolescent Diversion Project

PsycEXTRA Dataset ◽

10.1037/e627412009-001 ◽

2009 ◽

Author(s):

Jenna L. Claes ◽

Sean S. Hankins ◽

J. K. Ford

Keyword(s):

Long Term Impact

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Long-term Impact of an Early Operated Ventricular Septal Defect (VSD): Mental Health and Development in Children at Early School Age

10.1055/s-0039-1698275 ◽

2019 ◽

Author(s):

Valeska Stonawski ◽

Ariawan Purbojo ◽

Robert Cesnjevar ◽

Gunther Moll ◽

Oiver Kratz ◽

...

Keyword(s):

Mental Health ◽

Ventricular Septal Defect ◽

Septal Defect ◽

School Age ◽

Early School ◽

Health And Development ◽

Early School Age ◽

Long Term Impact

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Globalisation and Equity Issues in Post-socialist Transition Economies

Acta Oeconomica ◽

10.1556/aoecon.54.2004.3.1 ◽

2004 ◽

Vol 54 (3) ◽

pp. 273-296

Author(s):

G. W. Kolodko

Keyword(s):

Transition Economies ◽

World Market ◽

Early Years ◽

Standard Of Living ◽

Social Constraints ◽

Significant Shift ◽

Equity Issues ◽

Goods And Services ◽

The Rich

Equity issues in policymaking are difficult to resolve because they are linked not only to the economic situation but also to social constraints and political conflicts within a country. This is even more true in the case of post-socialist economies during their transition to a market system in the era of globalisation. The historical and irreversible process of liberalisation and integration of capital, goods and services, and labour markets into one world market, as well as the gradual construction of new institutions and the process of privatisation cause a significant shift in the income pattern of post-socialist emerging markets. Contrary to expectations, inequality increases affecting the standard of living and long-term growth. While globalisation contributes to the long-term acceleration of economic growth and offers a chance for many countries and regions to catch up with more advanced economies, it results in growing inequality both between the countries and within them. On average, the standard of living increases, but so does the gap between the rich and the poor. Therefore, equality issues should always be of concern to policymakers, especially in the early years of the change of regime in post-socialist transition economies.

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