Does Corporate Governance Influence Acquiring Firm Performance? Evidence from IT and Ites Industry
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MURTHY, E N CORPORATE GOVERNANCESummary: The purpose of the study is to investigate the effect of corporate governance mechanism on acquiring firm performance of IT and ITES industries. The study has used a sample of 38 mergers in the IT sector of Indian firms during the period 2004-2014. The abnormal returns of the acquiring firm have been estimated by applying event study methodology and the impact of corporate governance mechanism is analyzed by using cross-sectional regression analysis. The result of the study shows that corporate governance variables, namely, board size, board independence, and CEO duality, do influence the acquiring firm performance. The present study shows that acquiring firm generates positive wealth effect to the shareholders in different window periods. The study also found that leverage of the firm is a significant control variable that influences the acquiring firm performance.
| Item type | Current library | Call number | Vol info | Status | Notes | Date due | Barcode | Item holds | |
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Journal Article
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Main Library | Vol 18. No 2/ 55511149JA1 (Browse shelf(Opens below)) | Available | 55511149JA1 | |||||
Journals and Periodicals
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Main Library On Display | JOURNAL/GEN/Vol 18. No 2/55511149 (Browse shelf(Opens below)) | Vol 18. No 2 (01/05/2019) | Not For Loan | The IUP Jornal of Corporate Governance - April 2019 | 55511149 |
The purpose of the study is to investigate the effect of corporate governance mechanism on acquiring firm performance of IT and ITES industries. The study has used a sample of 38 mergers in the IT sector of Indian firms during the period 2004-2014. The abnormal returns of the acquiring firm have been estimated by applying event study methodology and the impact of corporate governance mechanism is analyzed by using cross-sectional regression analysis. The result of the study shows that corporate governance variables, namely, board size, board independence, and CEO duality, do influence the acquiring firm performance. The present study shows that acquiring firm generates positive wealth effect to the shareholders in different window periods. The study also found that leverage of the firm is a significant control variable that influences the acquiring firm performance.
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