Measurement of Long-Term Post-Merger Performance and Method of Payment

Mrs Rashmi, Turamari, R Hyderabad
2017 Journal of Management in Practice   unpublished
Using a sample of mergers between 2000 and 2010, we investigate the long-run performance of Indian acquiring companies. The measurement of long-run performance has been made on the basis of long-run CAR and BHAR using market index and control firms as reference portfolios. The results suggest that in India mergers in the long run bring gains to shareholders of acquiring companies. When the performance is analyzed on the basis of payment method, it can be concluded that in India cash-financed
more » ... ia cash-financed mergers perform better than stock-financed mergers using both long run CAR and BHAR approaches.