Impact of Mergers on Corporate Performance in India Saini Amarjit*, Dr. Singla Ravi** *Assistant Professor, Lovely Professional University, Jalandhar, India. E-mail: amarjitsaini@in.com **Assistant Professor, University School of Applied Management, Punjabi University, Patiala, Punjab, India. E-mail: singlar@rediffmail.com Online published on 10 March, 2015. Abstract Merger is one of the most common forms used in corporate restructuring across the globe. It is a strategy of inorganic growth. To obtain the optimum utilization of resources, it involves combination of all the competencies of two companies at a common platform. Even in India, thousands of companies follow this route for improving their organizational competitiveness. The present study deals in exploring the impact of domestic mergers on the financial performance of acquiring companies along with its impact on their shareholders’ wealth. When tested on the sample of 100 domestic mergers that took place from 1998–2008 in the Indian corporate sector we find no significant change in the post merger solvency and liquidity position of the acquirer companies from their pre merger position; however we observed a significant decline in the post merger profitability position of the acquirer companies from the pre merger profitability position. Finally the results of 61 days event window reveal the neutral overall market reaction to the merger activity. Top Keywords Domestic mergers, Impact, Financial Performance, Shareholders wealth, Event study, Abnormal Return. Top |