TY - JOUR
T1 - Determinants of merger activity: evidence from India
AU - Agrawal, M.
AU - Sensarma, R.
N1 - Original article can be found at: http://www.inderscience.com/ Copyright Inderscience Enterprises Limited. DOI: 10.1504/IJFSM.2007.016285
PY - 2007
Y1 - 2007
N2 - This study investigates the role of industry level factors in determining merger activity in an emerging economy. The study uses information from India, which has witnessed acceleration in merger activity subsequent to recent economic reforms. Departing from the existing literature, we proxy merger activity by the occurrence of mergers and the number of mergers. The results from logistic and count data regressions suggest that growth opportunity, concentration and cash flow are important determinants of merger activity. However, unlike existing studies, no evidence is found to support the role of mergers as a corporate restructuring activity in response to industry shocks.
AB - This study investigates the role of industry level factors in determining merger activity in an emerging economy. The study uses information from India, which has witnessed acceleration in merger activity subsequent to recent economic reforms. Departing from the existing literature, we proxy merger activity by the occurrence of mergers and the number of mergers. The results from logistic and count data regressions suggest that growth opportunity, concentration and cash flow are important determinants of merger activity. However, unlike existing studies, no evidence is found to support the role of mergers as a corporate restructuring activity in response to industry shocks.
U2 - 10.1504/IJFSM.2007.016285
DO - 10.1504/IJFSM.2007.016285
M3 - Article
SN - 1460-6712
VL - 2
SP - 277
EP - 288
JO - International Journal of Financial Services Management
JF - International Journal of Financial Services Management
IS - 4
ER -