Responding to Opportunities and Challenges Through Mergers and Acquisitions: Evidence from Four Indian Banks
Year: 2016
Type: preprint
Abstract: Banking sector has turned more dynamic over the years. New horizons are opening up and new challenges are also shaping up. In this scenario, banks are attempting to grab many opportunities and are responding to several challenges through their strategic moves of mergers and acquisitions. This study aims to analyze the effectiveness of mergers and acquisitions in the Indian banks. The study has taken four prominent amalgamations of banking sector in the last decade as samples. The analysis was done by taking five years each before and after the amalgamation. The effectiveness of amalgamations was analyzed by considering profitability, liquidity and solvency ratios of the banks. The analytical computations were performed through SPSS. It was observed that amalgamations do not enhance the companies’ profitability significantly. On the other hand, it helps banking companies to escalate their liquidity position and the ability to repay debt.
Source: SSRN Electronic Journal
Author: Abhay Raja
Institution: Shanti Business School
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2483503717