Mergers and acquisitions are the important business strategies for the growth and development of the companies. Managers have to take various decisions when it comes to company performance in relation to M&A. As an M&A expert and faculty in finance in School of Management, she presented her two research papers in international platform after joining the institute this year.
Dr. N. M. Leepsa of School of Management recently attended the World Finance & Banking Symposium (Singapore) in during December 12-13, 2014. The symposium is held at venue, Nanyang Technological University- Nanyang Business School, 50 Nanyang Avenue, Singapore 639798. She presented a paper titled “Post Mergers and Acquisitions Performance: Review of Research Studies”.
Based on sixty four papers published between 1974 and 2014, the paper portrayed literature review on firm financial performance during post mergers and acquisitions period. Review of M&A articles is based on various aspects of M&A performance like financial, human resources, corporate governance/ ownership, cross border/ culture, merger wave, business cycle, type of deal, type of industry. The paper classifies the existing literature into various sections, identifies the gaps, and suggests the scope for future research. This is a pure review article and throws light on information in relation to wide range of post mergers and acquisitions company performance and shows the aspects of M&A performance that are possibly not touched in researchers.
Dr. N. M. Leepsa of School of Management also attended Annual Symposium on Management and Social Sciences, August 29-31, 2014 Courtyard Seoul Times Square, Seoul, South Korea Organized by Higher Education Forum. She presented a paper titled “An Examination of Success of Mergers and Acquisitions in Manufacturing Sector in India Using Index Score”.
The performance of manufacturing companies is influenced by simultaneous impact of number of factors. From the literatures on M&A, it is found that there are vast number of studies in different countries on the performance evaluation of companies involved in mergers and acquisitions in various sectors. From the literature, it is observed that various financial ratios are used to examine the impact of M&A. Essentially the studies measure the impact in terms of increase or decrease in particular financial ratio in post M&A period compared to pre M&A period. However, it is possible to get mixed results i.e. as per some criteria of performance, the impact can be positive and as per some criteria the impact can be negative. Therefore, the challenge is to develop a scientific approach that would deal with the multiple financial ratios. Thus, the objective of the study is to find out the factors affecting post mergers and acquisition performance of the manufacturing companies in India using a composite score that provide more stable measures of the underlying abilities of financial ratios (Anglim, 2009). In this study, a composite index score is developed using Principal Components Analysis for the pre and post M&A period separately by taking into account different financial ratios. The period of study is from 2000 to 2008. The dependent variable is the index score and the independent variables are M&A Experience, Industry Relatedness, Size of Acquirer, Method of Payment, pre M&A quick ratio, return on capital employed, total debt ratio, and interest coverage ratio. It is found that the determinants of M&A success and failure are the pre M&A return on capital employed, pre M&A total interest coverage ratio and pre M&A quick ratio.
It provided an international platform for me as an academician and researcher in field of finance to exchange my research idea on the management topics from around the world. It was surely a professionally rewarding experience for me to socialize with delegates from other institutions, to hear their presentations and to converse with other researchers. Listening to presentations in the both the conference informed me of what others are doing in field of management and inspired new research ideas that I can carry out in our department. Thanks to the institute to provide me opportunity to go abroad for global experience.