Evaluating Economic Efficiency in Indian Mergers and Acquisitions: Empirical Insights across Key Industries

Mergers & acquisitions (viz-corporate restructuring) play a pivotal role in improvising financial, social and economic environments across the globe.Predominant strategic goals due to scarcity of time can be accomplished with the aid of mergers and acquisitions with a relatively secure and stable outcome.Significant sectors such as Banking & Finance, Pharmaceuticals, Manufacturing, Telecommunication And Information Technology sectors etc have adopted mergers and acquisitions (M&A) for business expansion and overcoming globalization challenges most importantly.The overall research paper aims to analyze the impact that M&A has on economic efficiency, financial performance and shareholder value using various models and statistical tools and techniques considering the prime current objective as a significant impact of cultural integration of M&A on the performance of the selected sample Indian industries.The study is based on secondary data which was collected from the capital market database called Centre for Monitoring Indian Economy Pvt Ltd (prowess, CMIE) various websites, journals and the Capitaline database.The period under study is 7 years ranging from financial assessment year 2015-16 to 2021-22.Ratio analysis has been used as a prime tool for the computation of the financial performance of the sample companies from the selected sectors under study in the Indian context.The results of the overall analysis depict that chosen explanatory variables (i.e.Liquidity, Operating Efficiency, Profitability and Leverage) in the post-acquisition period had not changed uniformly in all the acquiring sample companies and there is a positive response of cultural integration on the performance of (M&A) in various sectors from the current sample under study.Although there was an apparent increase in the created shareholder value in the post-acquisition period, however, a significant improvement was noted in the case of a few current sample companies.