Weitere Kapitel dieses Buchs durch Wischen aufrufen
Corporate restructuring is essential for the sustainability and inorganic growth of corporations. Mergers, acquisitions, and takeovers are the prominent strategies, by which companies can restructure their businesses. The chapter focused on 31 large-sized takeover announcements (Open Offers) in India, during the period 2015–2017. The chapter includes only those open offers which have more than Rs. 100 crore payment considerations. For the investigation purpose, standardized event theory was used for the computation of CAARs during the event window of 61 days of selected 24 companies. The study found excessive abnormal returns during the post phase of announcements (0 to +30) as compared to pre-phase of event window (−30 to −1). Further, the findings showed consistent results with the results of prior studies mentioned in the literature. The chapter concluded that shareholders of the target companies can generate excessive returns by rigorously examining the open offer announcements. The chapter also supports the presence of semi-strong form of market efficiency in India.
Bitte loggen Sie sich ein, um Zugang zu diesem Inhalt zu erhalten
Sie möchten Zugang zu diesem Inhalt erhalten? Dann informieren Sie sich jetzt über unsere Produkte:
Agarwal, M., & Bhattacharjea, A. (2006). Mergers in India. A response to regulatory shocks. Emerging Markets Finance and Trade, 42(3), 46–65. CrossRef
Bradley, M., Desai, A., & Kim, E. H. (1988). Synergistic gains from corporate acquisitions and their division between the stockholders of target and acquiring firms. Journal of Financial Economics, 21(1), 3–40. CrossRef
Brown, S. J., & Warner, J. B. (1980). Measuring security price performance. Journal of Financial Economics, 8(3), 205–258. CrossRef
Brown, S. J., & Warner, J. B. (1985). Using daily stock returns: The case of event studies. Journal of Financial Economics, 14(1), 3–31. CrossRef
Bruner, R. F. (2002). Does M&A pay? A survey of evidence for the decision-maker. Journal of Applied Finance, 12(1), 48–68.
Chakraborty, M. (2010). The wealth effects of takeover announcement for firms in the financial services sector in India. Journal of Emerging Market Finance, 9(2), 199–227. CrossRef
Chatterjee, S. (1986). Types of synergy and economic value: The impact of acquisitions on merging and rival firms. Strategic Management Journal, 7(2), 119–139. CrossRef
Datta, D. K., Pinches, G. E., & Narayanan, V. K. (1992). Factors influencing wealth creation from mergers and acquisitions: A meta-analysis. Strategic Management Journal, 13(1), 67–84. CrossRef
Dodd, P. (1980). Merger proposals, management discretion and stockholder wealth. Journal of Financial Economics, 8(2), 105–137. CrossRef
Dodd, P., & Ruback, R. (1977). Tender offers and stockholder returns: An empirical analysis. Journal of Financial Economics, 5(3), 351–373. CrossRef
Dodd, P., & Warner, J. B. (1983). On corporate governance: A study of proxy contests. Journal of Financial Economics, 11(1–4), 401–438. CrossRef
Dyckman, T., Philbrick, D., & Stephan, J. (1984). A comparison of event study methodologies using daily stock returns: A simulation approach. Journal of Accounting Research, 1–30. CrossRef
Fabozzi, F. J., Ferri, M. G., Fabozzi, T. D., & Tucker, J. (1988). A note on unsuccessful tender offers and stockholder returns. The Journal of Finance, 43(5), 1275–1283. CrossRef
Fama, E. F., Fisher, L., Jensen, M. C., & Roll, R. (1969). The adjustment of stock prices to new information. International Economic Review, 10(1), 1–21. CrossRef
Firth, M. (1980). Takeovers, shareholder returns, and the theory of the firm. The Quarterly Journal of Economics, 94(2), 235–260. CrossRef
Franks, J. R., & Harris, R. S. (1989). Shareholder wealth effects of corporate takeovers: The UK experience 1955–1985. Journal of Financial Economics, 23(2), 225–249. CrossRef
Gupta, A. (2006). Impact of earnings announcements on stock prices: Some empirical evidences from India. The ICFAI Journal of Applied Finance, 12(3), 5–13.
Jarrell, G. A., & Poulsen, A. B. (1989). The returns to acquiring firms in tender offers: Evidence from three decades. Financial Management, 12–19. CrossRef
Jensen, M. C., & Ruback, R. S. (1983). The market for corporate control: The scientific evidence. Journal of Financial Economics, 11(1–4), 5–50. CrossRef
Khanra, S., & Dhir, S. (2017). Creating value in small-cap firms by mitigating risks of market volatility. Vision, 21(4), 350–355. CrossRef
Kothari, S. P., & Warner, J. B. (2004). The econometrics of event studies.
Limmack, R. J. (1991). Corporate mergers and shareholder wealth effects: 1977–1986. Accounting and Business Research, 21(83), 239–252. CrossRef
Mallikarjunappa, T., & Nayak, P. (2013). A study of wealth effects of takeover announcements in India on target company shareholders. Vikalpa, 38(3), 23–50. CrossRef
Nangia, V. K., Srinivasa Reddy, K., & Agrawal, R. (2013). Corporate mergers and financial performance: A new assessment of Indian cases. Nankai Business Review International, 4(2), 107–129. CrossRef
Pandey, A. (2001). Takeover announcements, open offers, and shareholders’ returns in target firms. Vikalpa, 26(3), 19–30. CrossRef
Patell, J. M. (1976). Corporate forecasts of earnings per share and stock price behavior: Empirical test. Journal of Accounting Research, 246–276. CrossRef
Ranju, P. K., & Mallikarjunappa, T. (2017). Do acquisitions create value for acquirer companies in India? An empirical study. Indian Journal of Research in Capital Markets, 4(1), 7–18. CrossRef
Rani, N., Yadav, S. S., & Jain, P. K. (2013). Market response to the announcement of mergers and acquisitions: An empirical study from India. Vision, 17(1), 1–16. CrossRef
Rani, N., Yadav, S. S., & Jain, P. K. (2015). Innovative mode of financing and abnormal returns to shareholders of Indian acquiring firms. In Sushil & G. Chroust (Eds.), Systemic flexibility and business agility (Flexible systems management) (pp. 367–383). Springer: New Delhi.
Sharpe, W. F. (1963). A simplified model for portfolio analysis. Management Science, 9(2), 277–293. CrossRef
Singh, A. K., Zaman, M. A., & Krishnamurti, C. (1994). Liquidity changes associated with open market repurchases. Financial Management, 23(1), 47–55. CrossRef
- Impact of Open Offers on Shareholders’ Wealth
Anil K. Mittal
- Springer Singapore
- Chapter 14
Neuer Inhalt/© Stellmach, Neuer Inhalt/© Maturus, Pluta Logo/© Pluta, digitale Transformation/© Maksym Yemelyanov | Fotolia