An Empirical Examination of Efficiency Theory of Mergers in Emerging Market India
Theoretical Economics Letters (TEL)
labor, overheads, tax, interest and sales. We do not find synergy creation at
the end level (i.e. ROA level).
However, we observe synergy creation at tax and interest level and synergy
destruction at labor and overheads level. The performance of different
categories of mergers which are group/non-group mergers, related/unrelated
mergers and BIFR/non-BIFR mergers is also examined. Factors explaining the
post-merger profitability, efficiency and cash flows are also examined.