Abstract:
The corporate sector all over the world is restructuring its operations through different types of consolidation strategies like mergers and acquisitions in order to face challenges posed by the new pattern of globalization, which has led to the greater integration of national and international markets.. The intensity of cross-border operations recorded an unprecedented surge since the mid-1990s and the same trend continues (World Investment Report, 2000).The objective of the study is to analyze and compare the pre and post-merger and acquisition financial performance of four firms- Ranbaxy, Dr Reddy, Tata Steel and Hindalco through ratio analysis. For this, the data was being collected for three years before and after the acquisition from Capitoline database. Then to compare the changes, SPSS tool- Wilcoxon Signed Rank Test was being applied. The study concluded that cross-border Mergers and Acquisitions of the selected firms have resulted in no significant change in the financial performance of these firms.
Machine summary:
"Cross Border Mergers and Acquisitions by Indian firms-An Analysis of Pre and Post Merger performance Receipt: April 7 , 2011 Acceptance: May 25 , 2011 Kanika karora Rayat and bahra Institute of management Hoshiarpur from India Nancy Sahni Lovely professional university Jalandhar from India Abstract The corporate sector all over the world is restructuring its operations through differenttypesof consolidation strategies like mergers andacquisitionsin order to facechallenges posed by the newpattern ofglobalisation,which hasled to thegreaterintegration of national and international markets..
The objective of the study is to analyse andcompare the pre andpost-merger and acquisition financial performance of four firms- Ranbaxy, Dr Reddy, TataSteel and Hindalco through ratio analysis.
• To analyse and compare the pre and post-merger and acquisition performance of the selected cross border deals made by the Indian firms.
b) Research Design: The study on "Cross border mergers and acquisitions by Indian firms - an analysis of pre and post merger performance" is a Descriptive research which is based on authentic secondary source of data available.
e. the null hypothesis is accepted that there is no significant difference between the pre and the post merger and acquisition performance of the companies on the basis of current ratio.
e. the null hypothesis is accepted that there is no significant difference between the pre and the post merger and acquisition performance of the companies on the basis of Debt Equity ratio.
1), we can see that for Ranbaxy and Dr Reddy, the post- acquisition performance on the basis of Debt Equity ratio for all the 3 years has been better than the pre-acquisition period."