Importance Of Review Of Related Literature

Published Date: 02 Nov 2017

A literature review is an account of what has been published on a topic by accredited scholars and researchers. It can be defined as critical and depth evaluation of previous research which has been done. It can also be defined as summary and synopsis of a particular area of research. It allows establishing the objective of particular research program. A literature review is a body of text that aims to review the critical points of current knowledge including substantive findings as well as theoretical and methodological contributions to a particular topic.

Besides enlarging your knowledge about the topic, writing a literature review lets you gain and demonstrate skills in two areas:

1. Information seeking: the ability to scan the literature efficiently, using manual or computerized methods, to identify a set of useful articles and books

2. Critical appraisal: the ability to apply principles of analysis to identify unbiased and valid studies.

Importance:

It helps in finding out the previous research findings in a particular topic.

It also helps know the methodological approach to conduct the research.

It also helps detect conflicting points of view expressed by different authors in the research paper, which helps in understanding the diverging theories about the topic.

It provides an understanding of the current knowledge on a topic.

2.2 HOW REVIEW HAS BEEN DONE

To do the review of literature first the research paper is selected in accordance with the topic of research. Once the research papers are selected, the problem statement and objective of the research paper are identified. After identifying the objective of the research, the tools used and the methodology used is identified. In the process of doing a literature review, we must see its relevance. At last the conclusion and the limitation of the research are identified.

The development of the literature review has been done in 5 stages:

Objective

Methodology

Tools

Conclusion

Research gap

2.3 STUDIES CONDUCTED ABROAD

Mergers and acquisitions (abbreviated M&A) is an aspect of corporate strategy, corporate finance and management dealing with the buying, selling, dividing and combining of different companies and similar entities that can help an enterprise grow rapidly in its sector or location of origin, or a new field or new location, without creating a subsidiary, other child entity or using a joint venture. The distinction between a "merger" and an "acquisition" has become increasingly blurred in various respects (particularly in terms of the ultimate economic outcome), although it has not completely disappeared in all situations.

Hence a huge scope is available for research as this particular type of finance deal helps in boosting the economy.

2.4 STUDIES CONDUCTED IN INDIA

India in the recent years has showed tremendous growth in the M&A deal. It has been actively playing in all industrial sectors. It is widely spreading far across the stretches of all industrial verticals and on all business platforms. The increasing volume is witnessed in various sectors like that of finance, pharmaceuticals, telecom, FMCG, industrial development, automotives and metals. 

The volume of M&A transactions in India has apparently increased to about 67.2 billion USD in 2010 from 21.3 billion USD in 2009. At present the industry is witnessing a whopping 270% increase in M&A deal in the first quarter of the financial year. This increasing percentage is mainly attributed to the increasing cross-border M&A transactions. Over that increasing interest of foreign companies in Indian companies has given a tremendous push to such transactions. 

As a result of the above factors a lot of studies have been done under the heading of ‘Mergers and Acquisitions’.

2.5 LITERATURE REVIEWS

1. MERGER OF ICICI BANK AND BANK OF RAJASTHAN (International Journal of Multidisciplinary Research Vol.2 Issue 5, May 2012, ISSN 2231 5780)

Objective- To analyse the impact of the merger of both the banks and to determine if there is any value being created by the above merger.

Methodology- Secondary research and analysis of financial statements

Tools- Balance sheet analysis, compare and contrast of various ratios such as capital adequacy ratio, leverage, synergy creation, regulatory framework etc.

Conclusion- The above case of amalgamation will be substantially to enhance ICICI Bank’s branch network, already the largest among Indian private sector banks, and especially strengthen its presence in northern and western India. It would combine Bank of Rajasthan’s branch franchise with ICICI Bank’s strong capital base, to enhance the ability of the merged entity to capitalize on the growth opportunities in the Indian economy.

Research gap- The problem with this particular research is that more statistical tools could be used in order to get a more accurate result. Also no hypothesis testing is done and no studies have been done on shareholder’s wealth creation.

2. MERGERS AND ACQUISITIONS IN INDIAN BANKING INDUSTRY (APJRBM Volume 2, Issue 2 (February 2011) ISSN 2229-4104)

Objective- To evaluate the effectiveness of mergers and acquisitions of the selected merged banks on the basis of selected variables prior and after mergers and acquisitions.

Methodology- Secondary research

Tools- Analysis of pre and post-merger effects

Conclusion- The Indian banking sector is growing at an astonishing pace. A relatively new dimension in the Indian banking industry is accelerated through mergers and acquisitions. It will enable banks to achieve world class status and throw greater value to the stakeholders.

Research gap- No statistical tools used.

3. MERGERS & ACQUISITIONS IN THE INDIAN BANKING SYSTEM-AN OVERVIEW (International Referred Research Journal, August, 2010 ISSN- 0974-2832VoL.II *ISSUE-19)

Objective- The aim of this paper is to probe into the various motivations for mergers and acquisitions in the Indian Banking sector.

Methodology- Secondary research done by data collection from across 45 banks

Tools- A hypothesis was developed, t- tests were done with 1% as well as 5% level of significance

Conclusion- In the case of forced mergers, neither the bidder nor the target banks shareholders have benefited.

Research gap- the research should have been on motivations for the mergers occurring in banking sector. However, the author gave a conclusion with respect to benefits derived out of the merger.

4. IMPACT OF MERGERS ON COST EFFICIENCY OF INDIAN COMMERCIAL BANKS (Eurasian Journal of Business and Economics 2010, 3 (5), 27-50.)

Objective- Examines the cost efficiency of Indian commercial banks by using a non-parametric Data Envelopment Analysis Technique.

Methodology- Non-parametric statistical analysis

Tools- Stochastic frontier approach (SFA), Thick frontier approach (TFA), Mann-Whitney test

Conclusion- Findings of this study suggest that over the entire study period average cost efficiency of public sector banks found to be 73.4 and for private sector banks is 76.3 percent. The findings of this paper suggest that to some extent merger programme has been successful in Indian banking sector. The Government and Policy makers should not promote merger between strong and distressed banks as a way to promote the interest of the depositors of distressed banks, as it will have adverse effect upon the asset quality of the stronger banks.

5. MERGERS, ACQUISITIONS & FIRMS’ PERFORMANCE: EXPERIENCE OF INDIAN PHARMACEUTICAL INDUSTRY (Eurasian Journal of Business and Economics 2010, 3 (5), 111-126.)

Objective- To examine the impact of M&A on financial performance of Indian pharmaceutical companies.

Methodology- Estimated by applying panel data estimation techniques for a set of 52 listed drugs and pharmaceutical companies over the period from 2000-01 to 2007-08. Data collected from prowess.

Tools- Functional modelling, lagged intensities, regression analysis

Conclusion- The profitability of a firm depends directly on its size etc. MA do not have any significant impact on profitability of the firms in the long run.

Research gap- No research gap found

6. TYPE OF MERGER AND IMPACT ON OPERATING PERFORMANCE: THE INDIAN EXPERIENCE (2008, Pramod Mantravadi, A Vidyadhar Reddy, id318239)

Objective- To study the impact of different types of mergers on the operating performance of acquiring/merging corporates in India

Methodology- The research study adopted the methodology of comparing pre- and post-merger performance of merging companies, by using the following financial ratios: – Operating profit margin (profit before depreciation, interest and tax/net sales)– Gross profit margin (profit before interest and tax/net sales)– Net profit margin (profit after tax/net sales) – Return on net worth (profit after tax/net worth)– Return on capital employed (profit before interest and tax/capital employed) and – Debt-equity ratio (book value of debt/book value of equity).

Tools- Ratio analysis

Conclusion- The results suggest that there are minor variations in terms of the impact on operating performance following mergers of different kinds.

Research gap- No control groups have been used in the study.

7. POST-MERGER PERFORMANCE OF ACQUIRING FIRMS FROM DIFFERENT INDUSTRIES IN INDIA (Pramod Mantravadi, International Research Journal of Finance and Economics, ISSN 1450-2887 Issue 22 (2008))

Objective- To study the impact of mergers on the operating performance of acquiring corporates in different industries, by examining some pre- merger and post-merger financial ratios, with the sample of firms chosen as all mergers involving public limited and traded companies in India between 1991 and 2003.

Methodology- Sample included 118 cases of mergers wherein the pre-merger and post-merger averages for a set of key financial ratios were computed for 3 years prior to, and 3 years after, the year of merger completion (or the year of approval when the time of merger completion is not available). The merger completion year was denoted as year 0. The post-merger performance was compared with the pre-merger performance and tested for significant differences, using paired "t" test.

Tools- Hypotheses generation, T-test, Ratio analysis

Conclusion- The results from the analysis of pre- and post-merger operating performance ratios for the acquiring firms in the sample showed that there was a differential impact of mergers, for different industry sectors in India. Type of industry does seem to make a difference to the post-merger operating performance of acquiring firms

Research gap- The study has ignored the impact of possible differences in the accounting methods adopted by different companies in the sample, as the sample included only stock-for-stock mergers. The study has also not used any control groups for comparison (industry average or firms with similar characteristics) as was done in other studies. Future research in this area could be an extension of the present study, by estimating and comparing with industry/sector averages, and the differences, if any, could be explored further to derive further insights. Researchers could also analyse the post-merger returns to shareholders of acquiring firms involved in mergers in India, to correlate with findings of studies indicating poor postmerger performance

8. THE IMPACT OF MERGERS AND ACQUISITIONS ON CORPORATE PERFORMANCE IN INDIA (Emerald 46, (2008)).

Objective- While going for mergers and acquisitions (M&A) management smell financial synergy or/and operating synergy in different ways. But actually are they able to generate that potential synergy or not, is the important issue. The aim of this study is to find out whether the claims made by the corporate sector while going for M&As to generate synergy, are being achieved or not in Indian context.

Methodology- This empirical study is based on secondary financial data and

Tools- Tabulation, ratio analysis, correlation etc. is being used for analysis.

Conclusion- The results indicate that in many cases of M&As, the acquiring firms were able to generate synergy in long run, that may be in the form of higher cash flow, more business, diversification, cost cuttings etc.

Research gap- The research shows that management cannot take it for granted that synergy can be generated and profits can be increased simply by going for mergers and acquisitions. A case study based research parallel to this study could be initiated to get nearer to reality show.

9. INTERNATIONAL MERGERS AND ACQUISITIONS, COOPERATIONS AND NETWORKS IN THE E-BUSINESS INDUSTRY (2007, Michael Jurgen Garbade, id291375)

Objective- To analyse the success factors, goals, motives and valuation of mergers across the e-business sector.

Methodology- Secondary research has been done and data has been collected across the entire sector

Tools- RBV theory, SWOT analysis, Free cash flow

Conclusion- There a considerable number of factors in any merger deal which affect the success of it. Valuation of such deals shows just a measure of financial aspects of the merger, however, satisfaction levels of employees is also a major aspect of such deals.

Research gap- the research fails to use tools like regression analysis which could have been used for the study to get better conclusions.

10. BANK DEREGULATIONS AND ACQUISITION ACTIVITY: THE CASES OF US, ITALY AND GERMANY (Journal of Financial Regulation and Compliance Vol. 15 No. 2, 2007)

Objective- Bank regulators across the world have recently lifted restrictions on where banks can operate and what type of activities they can perform. Following the deregulation of the sector, bank mergers and acquisitions have grown substantially. The purpose of this paper is to outline bank deregulation and acquisition activity, focusing on the USA, Italy and Germany.

Methodology- The paper looks at how changes in the regulatory regime of the USA, Italy and Germany have spurred bank merger activities. For each country, future polices that bank supervisors may adopt in order to benefit from a more integrated financial sector are also critically discussed.

Tools- Valuation of mergers, percentage of bank assets

Conclusion- Over the last two decades, supervisors in the USA, Italy and Germany have begun to deregulate parts of their banking industries, thus, sparking a process of consolidation in their national banking sectors that still has not ended.

Research gap- As the study is confined to Germany and USA, Indian implications of the same cannot be determined.

11. DETERMINANTS OF MERGER ACTIVITY: EVIDENCE FROM INDIA (id902961)

Objective- This study investigates the role of industry level factors in determining merger activity in an emerging economy. The study uses information from India, which has witnessed acceleration in merger activity subsequent to recent economic reforms.

Methodology- Usage of secondary information from Prowess database and media reports collected from the internet.

Tools- Count data regression analysis, Logit regression, Poisson distribution

Conclusion- The results from logistic and count data regressions suggest that growth opportunity, concentration and cash flow are important determinants of merger activity.

Research gap- No evidence is found to support the role of mergers as a corporate restructuring activity in response to industry shocks.

12. MERGERS IN INDIAN BANKING: AN ALAYSIS (M Jaydev & Rudra Sensarma, id902962)

Objective- This paper analyzes some critical issues of consolidation in Indian banking with particular emphasis on the views of two important stake-holders viz. shareholders and managers.

Methodology- Secondary data collected from prowess database and the world wide web

Tools- Event study analysis, Evaluation of shareholders perception, bank loan portfolio valuation, valuation of intangible assets, valuation of equity

Conclusion- The trend of consolidation in Indian banking industry has so far been limited mainly to restructuring of weak banks and harmonization of banks and financial institutions. Voluntary mergers demonstrating market dynamics are very few. More voluntary mergers are possible provided the benefits of mergers are derived by all the stakeholders of the banks. Currently the forced mergers may be protecting the interests of depositors but shareholders of both bidder and target banks are not perceived the benefits of merger.

Research gap- The study fails to include the viewpoint of bank managers and people at the higher level of authority with respect to mergers and its impact on valuation.

13. EFFICIENCY, SCALE ECONOMIES AND VALUATION EFFECTS: EVIDENCE FROM BANK MERGERS IN INDIA (Rudra Sensarma, M. Jaydev, id905447)

Objective- This paper examines two important issues related to bank mergers in India-potential economic gains of state owned banks if they undergo consolidation. The realized impact of bank mergers on shareholders’ wealth.

Methodology- Secondary research

Tools- Stochastic frontier analysis, Event study, abnormal returns

Conclusion- Many Indian banks exhibit potential cost savings from mergers provided they rationalize their branch networks although profit efficiency may not rise immediately. Also, in the case of forced mergers, shareholders of neither the bidder nor the target banks benefited. In the case of voluntary mergers, the bidder banks‟ shareholders gained more than the target banks‟ shareholders.

Research gap- No research gap found

14. MERGERS IN BANKING INDUSTRY OF INDIA: SOME EMERGING ISSUES (Asian Journal of Business and Management Sciences, ISSN: 2047-2528 Vol. 1 No. 2 [157-165])

Objective- To probe the motives of banks for mergers and acquisition with special reference to Indian Banking Industry.

Methodology- Secondary data collection on 17 major mergers in the banking industry in India

Tools- Factors affecting mergers, challenges for mergers

Conclusion- Small and local banks face difficulty in bearing the impact of global economy therefore, they need support and it is one of the reasons for merger. Some private banks used mergers as a strategic tool for expanding their horizons. There is huge potential in rural markets of India, which is not yet explored by the major banks.

Research gap- No statistical tools used

15. MERGERS AND ACQUISITIONS (M&As) IN THE INDIAN BANKING SECTOR IN POST LIBERALIZATION REGIME (International Journal of Contemporary Business Studies Vol: 2, No: 11. November, 2011 ISSN 2156-7506)

Objective- To explore various motivations of Merger and Acquisitions in the Indian banking sector.

Methodology- The data of Merger and Acquisitions since economic liberalization are collected for a set of various financial parameters.

Tools- T distribution and hypothesis testing done on ROE, ROI,

ROCE and profitability.

Conclusion- Results suggest that merged banks can obtain efficiency and gains through Merger and Acquisitions (M&As) and passes the benefits to the equity share holders’ in the form of dividends.

Research gap- Works has been done on trends, policies & their framework, human aspect which is needed to be investigated, whereas profitability and financial analysis of the mergers have not been given due importance.

16. THE CROSS BORDER MERGERS AND ACQUISITIONS WAVE OF THE LATE 1990s (University of Chicago Press Volume ISBN: 0-262-03615-4)

Objective- The nature of the wave of cross-border mergers and acquisitions (M&A) that occurred during the period of rapid globalization in the 1990s

Methodology- Secondary analysis

Tools- Economic analysis, analysis of OECD nations, representation of data through pie-charts, fixed-specific effects equation

Conclusion- in contrast to the general liberalization of policies toward greenfield FDI, national policies toward mergers and acquisitions (both within and across borders) may have become more stringent throughout the 1990s. The specific point made is that there has been an increase in the number of jurisdictions (including both developed and developing countries) with merger review requirements.

Research gap- The two factors mentioned above are not inconsistent, this claim does sit rather awkwardly with the evidence on the magnitude of this merger wave, and appears to deserve further investigation.

17. VALUATION FOR MERGERS, BUYOUTS AND RESTRUCTURING (John Wiley & Sons, New York, 2004, id570631)

Objective- The study presents a comprehensive approach to corporate valuation. It treats in detail the valuation of mergers, acquisitions and leverage buyouts, and the assessment of asset restructuring options and recapitalization plans.

Methodology- Secondary research

Tools- Pre and post-valuation of mergers, value metrics, financing options

Conclusion- The valuation of mergers and acquisitions etc. can be done through mathematical tools as well as certain software’s available.

Research gap- The study is not research centric. It revolves around teaching the valuation techniques for the aforementioned mergers.

18. BANKING IN INDIA: REFORMS AND REORGANISATION (Rajesh Chakrabarti, id649855)

Objective- The banking sector as a whole and particularly the public sector banks still suffer from considerable NPAs, but the situation has improved over time. New legal developments like the SARFAESI Act provide new options to banks in their struggle against NPAs. The adoption of Basel-II norms however imply new challenges for Indian banks as well as regulators is studied under this title.

Methodology- Secondary research

Tools- Capital adequacy ratio, The collapse of the Global Trust Bank, NPA management, concept of under-lending

Conclusion- The reforms in Indian banking have made operational activities of the banks more efficient. Such reforms have provided a centralised control for lending and borrowing facilities with same norms of operations across all the Indian banks.

Research gap- The study is centric to reforms and regulations and is basically concentrating on the fall of one particular bank. More number of such banks could have been taken up to make the study more effective.

19. MEASURING VALUE CREATION IN BANK MERGERS AND ACQUISITIONS (Annalisa Caruso , Fabrizio Palmucci, id676522)

Objective- To perform an event study on mergers and acquisitions between publicly Italian banks.

Methodology- The most common methods used in the literature, then correcting the actual returns with: the market return; the sector index return; the market model expected return with beta calculated using the market index; the market model expected return with beta calculated using the sector index.

Tools- Event study, Creation of market value,

Conclusion- The overall market value creation can even become from negative to positive. Moreover, in Italy private benefits are more likely to drive the bidders’ decisions rather than value creation goals.

Research gap- The study is not centric to India.

20. RETURNS TO SHAREHOLDERS FROM MERGERS: THE CASE OF RIL AND RPL MERGER (A K Mishra, Rashmi Goel, id828706)

Objective- To find out the return generated to the shareholders’ post-merger and its comparison to pre-merger returns.

Methodology- In order to test the hypotheses the study required: announcement date, excess shareholder returns, cumulative excess returns and excess returns of combined firm. Data was collected from prowess.

Tools- Market value created, excess shareholders’ returns, cumulative excess returns, announcement effect.

Conclusion- The study shows that positive excess return occurred to the shareholders of the target company RPL and negative excess returns to the shareholders of the acquiring company, RIL. It was found that in this process of merger, despite the deal appearing to be favourable to the shareholders of RIL they lost and RPL shareholders gained from the deal. This deal was led with the ‘empire building’ motive along with spreading the risk and return more equally among the shareholders of the two companies.

21. CORPORATE MERGER PRACTICES IN INDIA: AN EMPIRICAL STUDY (Neelam Rani, Surendra S. Yadav and P. K. Jain, id2043698)

Objective: investigates motives and trend of merger activities of Indian companies during the period 2003-08.

Methodology: Survey through questionnaire

Tools: Frequency distribution and hypothesis testing.

Conclusion: primary motivation for mergers is to achieve operating synergies. For unlisted wholly owned subsidiary motive of mergers is to achieve consolidation and a response to changing regulatory framework.

22. MERGERS AND ACQUISITIONS AS A STRATEGIC TOOL TO GAIN COPETITIVE ADVANTAGE BY EXPLOTITING SYNERGIES: A STUDY OF MERGING AND NON-MERGING FIRMS IN INDIAN ALUMINIUM INDUSTRY (Dr. Swami Prasad Saxena, Sharmistha Rawat, id2086114)

Objective: Analyze the objectives, benefits, and trends of M&As in post liberalization period in India.

Methodology: Secondary Analysis.

Tools: Fundamental analysis, Economic analysis and comparative study.

Conclusion: M&A’s are the strategic tools leading to the maximization of a company’s growth by enhancing its production and marketing operations. Mergers and acquisitions result in accelerated growth, enhanced profitability, increased operating efficiency and synergy, reduced severity of competition, and increased market power of the company.

23. MERGERS AND ACQUISITIONS IN BANKS (Independent Research Report)

Objective: factors which affect the financial performance with reference to profitability of Indian banking sector

Methodology: Primary data analysis through econometric approach.

Tools: Regression model

Conclusion: The performance of all the banks operating in three different sectors is comparitively well and shown significant improvements in terms of Growth, Capital adequacy to Risk Assets Ratio.

24. DOES POOR QUALITY OF INSTITUTIONS ATTRACT CROSS BORDER MERGERS AND ACQUISITIONS (Poonam Singh, id2133841)

Objective: Determinants of attractiveness of factors affecting CBMA’s in India.

Methodology: Econometric Model

Tools: Hypothesis testing and regression analysis.

Conclusion: FDI flows in the form of cross border mergers and acquisitions (CBMAs) in India share a negative relationship with the gap in quality of institutions between the host and home countries after controlling for market size and market opportunity in the home and host country and infrastructural facilities in the host country.

25. TESTING HUBRIS HYPOTHESIS OF MERGERS AND ACQUISITIONS: EVIDENCE FROM INDIA (Malabika Deo, Aasif Shah, ID2156134)

Objective: Testing Hubris Hypothesis in Indian Banking Sector.

Methodology: Event Study Methodology

Tools: MM Model and Constant Market Model and regression analysis.

Conclusion: Hubris hypothesis which states that that the shareholders of the bidding firms would incur loss on merger announcements does not hold well in the Indian perspective. Contrary results are shown.

Research gap: no gap found

26. DOES CORPORATE GOVERNANCE MATTER IN INDIAN BANKING? POLICY IMPLICATIONS ON THE PERFORMANCE (Dr. A.P.Pati, id877810)

Objective- To identify the linkage between corporate governance and the financial sector, with a special emphasis on banking.

Methodology- Secondary research has been used and data collected has been analysed

Tools- Portfolio valuation, policy implications, correlation analysis, empirical analysis

Conclusion- Policy framework for corporate governance in general has been developed lately in India and for banking it is still evolving. Despite of many irregularities in banking sector culminated through compulsory mergers and recapitalizations, most of the measures are still at recommendatory level indicating a laxity on the part of GOI and RBI. The dominance of GOI on banking sector and its political compulsion of not to open PSU banks for greater public participation are major hurdles in the implementation of best governance practices. Inefficient banking institutions are sustained in India due to political agendas other than efficiency.

Research gap- The study fails to take into consideration banks apart from lead players and RBI.

27. METHODS OF VALUATION FOR MERGERS AND ACQUISITIONS

Objective- To provide steps to valuation of M&A’s in an elaborate mathematical format.

Methodology- Financial analysis of free as well as discounted cash flows where data has been collected from secondary sources.

Tools- DCF,FCFF.FCFE

Conclusion- Discounted value approach is not the only approach to valuation. A lot of other models like market multiples of peer firm, book value, replacement cost, liquidation value, market value and comparable market transactions are also available.

Research gap- The research is based more on a mathematic perspective and also fails to give the most appropriate method for M&A valuation.

28. IMPACT OF M&A ON FIRM PERFORMANCE IN INDIA: IMPLICATIONS FOR CONCENTRATION OF OWNERSHIP AND INSIDER ENTRENCHMENT (Sumon Kumar Bhaumik & Ekta Selarka, id970001)

Objective- To determine the impact of concentration of ownership on firm performance.

Methodology- The data on M&A events were obtained from three different sources, namely, the M&A database of the Centre for Monitoring the Indian Economy (CMIE), the Securities and Exchange Board of India (SEBI) and the Bombay Stock Exchange (BSE).

Tools- Pre and post-merger analysis, univariate analysis of firm, regression analysis, Panel data analysis.

Conclusion- Results indicate that, during the 1995-2002 period, M&A in India led to deterioration in firm performance. It is also found that neither the investors in the equity market nor the debt holders can be relied upon to discipline errant (and entrenched) management. In other words, on balance, negative effects of entrenchment of owner managers trumps the positive effects of reduction in owner-vs.-manager agency problems.

Research gap- Profitability is not accounted for in any of the parts of the study. Also there is very little mention about wealth maximisation.

29. IMPACT OF MERGER ANNOUNCEMENT ON SHAREHOLDERS WEALTH: EVIDENCE FROM INDIAN PRIVATE SECTOR BANKS (Manoj Anand and Jagandeep Singh, id977119)

Objective- This study analyses five mergers in the Indian banking sector to capture the returns to shareholders as a result of the merger announcements using the event study methodology

Methodology- Even study methodology

Tools- Shareholder Wealth Effects, Cumulative Abnormal Returns, Single Factor Model, Two Factor Model.

Conclusion- The merger announcements in the Indian banking industry have positive and significant shareholder wealth effect both for bidder and target banks.

Research gap- Only 5 such mergers are taken into consideration which reduce the scope and accuracy of the study.

30. MOTIVES FOR MERGERS AND ACQUISITIONS IN INDIAN BANKING SECTOR – A NOTE IN OPPORTUNITITES & IMPERATIVES (Jay Mehta, Rajesh Kumar Kakani, id1008717)

Objective- The aim of this paper is to probe into the various motivations for mergers and acquisitions in the Indian Banking sector.

Methodology- Data was collected for the top twenty banks and then the research was carried out.

Tools- Analysis of risk and return

Conclusion- Given the recent advances in electronic technology (especially wireless) makes the traditional occupation of land theory redundant, increasing the importance for the state to intervene and create large sized banks using the M&A route. Hence, it is imperative for the state to create a few large sized banks even at the cost of hurting its other stakeholders including customers.

Research gap- In my view, a regression analysis would have added to the findings of the study.

31. FINANCIAL PERFORMANCE OF PRIVATE SECTOR BANKS IN INDIA – AN EVALUATION. (B.Sathish Kumar, id1044621)

Objective- To make an evaluation of the financial performance of Indian private sector banks.

Methodology- Secondary data has been collected for various banks and an individual analysis is done for each bank.

Tools- the financial performance variables like Business per employee, return on assets, profit per employee, capital adequacy, credit deposit ratio, operating profit and percentage of net Non-performing asset to net advance are taken for analysis.

Conclusion- Indian banking system has under gone a drastic change since liberalization. The new generation private sector bank has best used the technology, utilize the manpower in an effective manner. They are professionally managed. These have made them to attract more customers and made them to grower faster and stronger.

Research gap- Individual research will be done with different variables across different banks. There is a lack of unanimity in the research.

32. RELATIVE SIZE IN MERGERS AND OPERATING PERFORMANCE: INDIAN EXPERIENCE (Pramod Mantravadi, A Vidyadhar Reddy, id1082787)

Objective- This paper studies the impact of mergers on the operating performance of acquiring corporates by examining some pre- and post-merger financial ratios

Methodology- A sample of firms chosen from all mergers involving public limited and traded companies in India between 1991 and 2003.

Tools- Relative size factor analysis, usage of ratios like Operating profit margin, Gross profit margins, Net profit margin, Return on net worth, Return on capital employed, Debt equity ratio.

Conclusion- The results suggest that there are minor variations in terms of the impact on operating performance following mergers, when the acquiring and acquired firms are of different relative sizes, as measured by market value of equity.

Research gap- No hypotheses developed.

33. GLOBAL MERGERS AND NATIONAL SECURITY (Stuart S. Malawer, id1169583)

Objective- To know the implications and process of M&A across the globe

Methodology- Secondary data was collected from Wall street journal and other world reports.

Tools- Analysis done only on theoretical basis.

Conclusion- The global economy seems strong; all of its horses are running. But warning signs are present. Almost a century ago an earlier era of globalization was ended by a single shot. Overreaction today could have the same result.

Research gap- No statistical tools used.

34. INDIAS FINANCIAL SYSTEM (id1261244, Franklin Allen, Rajesh Chakrabarti, Sankar De)

Objective- To understand the Indian financial systems

Methodology- The research is a secondary form of research where data was collected about various kinds of financial institutions across the country

Tools- Modelling done while keeping in mind the Dependence of Indian financial system on certain variables.

Conclusion- The banking sector has seen major changes with deregulation of interest rates and the emergence of strong domestic private players as well as foreign banks. At the same time, there is some evidence of credit constraints for India’s SME firms that rely heavily on trade credit. Corporate governance norms in India have strengthened rapidly in the past few years. Family businesses, however, still dominate the landscape and investor protection, while excellent on paper, appears to be less effective owing to an overburdened legal system and corruption.

Research gap- No statistical tools used in the study.

35. PERFORMANCE VALUATION IN INDIAN BANKING (Sagar Dave, id1276102)

Objective- To find out if comprehensive performance evaluation, can prove to be better than the existing techniques for performance measurement, evaluation and strategic planning for future growth and development of the Indian banks in the light of changing requirements of this sector.

Methodology- Secondary research

Tools- BSC model, Performance driver model

Conclusion- Performance evaluation of an organization asks for a comprehensive system, that encompasses all organizational aspects. In this context, financial aspects alone are an inefficient and insufficient tool for performance evaluation, whereas BSC technique emerges as an all-inclusive and more efficient tool for the purpose. Organization may be able to generate better strategic links between short-term and the long-term objectives based on this technique.

Research gap- The study fails to recognize the returns generated from the banking system in the country.

36. A STUDY OF TECHNICAL EFFICIENCY OF BANKS IN INDIA (MIHIR DASH, CHRISTABEL CHARLES, id1417376)

Objective- To investigate the technical efficiency of Indian banks, segmented in terms of ownership.

Methodology-The data envelopment analysis (DEA) model was used with five input variables (viz. borrowings, deposits, fixed assets, net worth, and operating expenses) and four output variables (advances & loans, investments, net interest income, and non-interest income), and the efficiency scores were calculated for a sample of forty-nine major banks operating in India.

Tools- DEA model

Conclusion- The results of the study show that foreign banks were slightly more efficient than public and private banks, and that there was not much of a difference in the efficiency of public and private banks. There were, however, some significant differences in terms of utilization/underutilization of inputs and under-production of outputs.

Research gap- Technical efficiency has been measured only in terms of efficiency analysis model. However, in my view, a proper technical analysis of stock price movements of listed banks could have been done to add further value to the study.

37. RE-ENGINEERING OF BANKING SECTOR THROUGH MERGERS AND ACQUISITIONS (Dr. Murthy Pamarty, id1460919)

Objective- To study the predominant factors influencing M&A of banks in Indian banking scenario, To analyze the M&A of public sector banks with pre and post periods of M&A, To examine the M&A process private sectors banks with pre and post periods of M&A, To develop an index model to ascertain M&A situation in general in Indian banking scenario, To offer suggestion and recommendation for the effective functioning of bank after M&A.

Methodology- This study based on secondary data alone. Two public sector and private sector banks and M&A scenario in the pre and post periods of six years are taken up as radical data in which pre merger three years and post merger three years in particular two public sector merger and two private sector merger in a particular period 2005-2006 are taken up for the analysis.

Tools- Multiple regression analysis, Status QUO equilibrium, simple linear probabilistic analysis, Paired Z test

Conclusion- Merger seems to lead to financial and strategic growth. The financial and strategic management aspect of merger is to be analyzed from several bases. The present study evaluated financial implications before and after mergers in the banking industry. Further, the reaction of security prices to announcement of M & A decisions are also studied.

Research gap- This study is a descriptive analysis of financial performance and share price reaction to sample banks. While carrying on this study, the researcher has observed certain limitation to cope up with the study.1. The study is based on secondary data and is confined to banking sector, only hence no comparison with other sectors was made. 2. There is an acute deficiency with reference to M&A in India. The CMIE is one of the agencies, which has been publishing data on M&A in India on a regular basis. Hence, the data from CMIE are used in this study.

38. CROSS-BORDER MERGERS AND ACQUISITIONS IN INDIA (Sayantan Gupta, id1461372)

Objective- To find an overview of the cross-border mergers and acquisitions in India, Procedural aspects as to the applicable laws, The overseas direct investment which has been playing a part for the cross border deals.

Methodology- Secondary research

Tools- Analysis of various laws of the country which impact a cross border merger deal

Conclusion- Mergers and acquisitions come in various forms, and investors need to understand what best suits their needs

Research gap- No statistical tools have been used.

39. MERGERS IN INDIAN BANKING SECTOR – MOTIVES AND BENEFITS (AKHIL BHAN, id1467813)

Objective- To attain an insight into the motives and benefits of the mergers in Indian banking sector

Methodology- The data for 8 significant deals which have happened during the period 1999-2006 has been collected as the time series data.

Tools- EVA analysis

Conclusion- In the Indian banking context the effect of mergers in not seen over a short period of time, Economic value added method is a good method to study the long term effect of the efficiencies of the merger, all the banks did do well after the merger and the value was added.

Research gap- Regression analysis could have been used as a tool.

40. A STUDY ON M&A IN INDIAN AVIATION INDUSTRY AND THEIR IMPACT ON THE OPERATING PERFORMANCE AND SHAREHOLDERS WEALTH (Nisarg A Joshi, Jay M Desai, id2025282)

Objective- The objective of this paper is to study, why organisations take the inorganic mode of expansion.

Methodology- The feasibility of such expansions is tested in the study.

Tools- Financial analysis, calculation of synergy

Conclusion- It was be inferred that mergers and acquisitions have not created enough shareholder wealth post-merger.

Research gap- No proper statistical tools were used.