A Study on Mergers & Acquisitions in Oil & Gas Sector in India and Their Impact on the Operating Performance and Shareholders’ Wealth
Shri Chimanbhai Patel Institutes Working Paper Series No. CPI/MBA/2013/0002
31 Pages Posted: 18 Jan 2013
Date Written: January 17, 2013
The objective of this paper is to study, why organizations take the inorganic mode of expansion. However, the main focus is on studying the operating performance and shareholder value of acquiring companies and comparing their performance before and after the merger. To conduct a uniform research and arrive at an accurate conclusion, we restrict our research to only Indian companies. To get a perspective on India, we study oil and gas sector.We will test feasibility that mergers improve operating performance of acquiring companies. However on studying the cases, we conclude that as in previous studies, mergers do not improve financial performance at least in the immediate short term.
Keywords: mergers, corporate restructuring, shareholders wealth, oil and gas, operating profit, inorganic growth
JEL Classification: G34
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