Work

The impact of mergers and acquisitions on performance of firms: A pre- and post-TRIPS analysis of India's pharmaceutical industry

Year: 2023

Type: article

Abstract: This study analyses the impact of mergers and acquisitions on performance of Indian pharmaceutical firms following the implementation of TRIPS in 1995. In order to identify adequately the effect of mergers, we investigate the impact on firm performance of the merged vis-a-vis the non-merged firms in the post-TRIPS period using difference-in-differences and propensity score matching approaches. Our results suggest that firm performance improved in merged firms, following the mergers. We argue that our finding represents the incidence of “positioning” merger (Gorton et al., 2009). Moreover, transfer of technologies and capabilities helped to improve firm performance in merged firms. Our findings have significant policy implications for Asian countries.

Source: Asia and the Global Economy

DOI: 10.1016/j.aglobe.2023.100059

Authors: Indrani Chakraborty, Paul Kattuman

Institutions: Institute of Development Studies Kolkata, University of Cambridge

Language: English

Topic: Corporate Finance and Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: gold

Estimated APC paid: $1,500

OpenAlex ID: W4375858413

FWCI: 8.737

Cites: 46

Cited by: 15

Related to: 10