Journal Press India^®

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The market performance and financial performance are two important measures of evaluating merger failure or success. A positive operating performance also implies a positive short-run and long-run performance as market discounts all future expectations. The world over several research works have been done to analyze the merger performance in post-merger period and the results are mixed. In the present study, we attempt to measure post-merger performance of Indian mergers and find that mergers do well only in the year of merger. In subsequent years, the operating performance falls. Even the control adjusted performance declines. Though the present work is confined to only 16 mergers for want of data, a further analysis of merger performance in post-merger period on the lines of control firm and industry –adjusted methods is required.

Keywords

Operating performance; Acquiring firms; Control firm; Mergers

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