The impact of mergers and acquisitions on performance of firms: A pre- and post-TRIPS analysis of India's pharmaceutical industry
This study analyses the impact of mergers and acquisitions on performance of Indian pharmaceutical firms following the implementation of TRIPS in 1995. In order to identify adequately the effect of mergers, we investigate the impact on firm performance of the merged vis-a-vis the non-merged firms in...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Elsevier
2023-07-01
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| Series: | Asia and the Global Economy |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2667111523000063 |
| _version_ | 1797390350287896576 |
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| author | Indrani Chakraborty Paul Kattuman |
| author_facet | Indrani Chakraborty Paul Kattuman |
| author_sort | Indrani Chakraborty |
| collection | DOAJ |
| description | This study analyses the impact of mergers and acquisitions on performance of Indian pharmaceutical firms following the implementation of TRIPS in 1995. In order to identify adequately the effect of mergers, we investigate the impact on firm performance of the merged vis-a-vis the non-merged firms in the post-TRIPS period using difference-in-differences and propensity score matching approaches. Our results suggest that firm performance improved in merged firms, following the mergers. We argue that our finding represents the incidence of “positioning” merger (Gorton et al., 2009). Moreover, transfer of technologies and capabilities helped to improve firm performance in merged firms. Our findings have significant policy implications for Asian countries. |
| first_indexed | 2024-03-08T23:09:31Z |
| format | Article |
| id | doaj.art-783bdc727b2d4c9d9c3bcff839e8b858 |
| institution | Directory Open Access Journal |
| issn | 2667-1115 |
| language | English |
| last_indexed | 2024-03-08T23:09:31Z |
| publishDate | 2023-07-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Asia and the Global Economy |
| spelling | doaj.art-783bdc727b2d4c9d9c3bcff839e8b8582023-12-15T07:27:02ZengElsevierAsia and the Global Economy2667-11152023-07-0132100059The impact of mergers and acquisitions on performance of firms: A pre- and post-TRIPS analysis of India's pharmaceutical industryIndrani Chakraborty0Paul Kattuman1Professor of Economics, Institute of Development Studies Kolkata, India; Corresponding author.Professor of Economics, Cambridge Judge Business School, University of Cambridge, UKThis study analyses the impact of mergers and acquisitions on performance of Indian pharmaceutical firms following the implementation of TRIPS in 1995. In order to identify adequately the effect of mergers, we investigate the impact on firm performance of the merged vis-a-vis the non-merged firms in the post-TRIPS period using difference-in-differences and propensity score matching approaches. Our results suggest that firm performance improved in merged firms, following the mergers. We argue that our finding represents the incidence of “positioning” merger (Gorton et al., 2009). Moreover, transfer of technologies and capabilities helped to improve firm performance in merged firms. Our findings have significant policy implications for Asian countries.http://www.sciencedirect.com/science/article/pii/S2667111523000063C21C23G34L25L52L65 |
| spellingShingle | Indrani Chakraborty Paul Kattuman The impact of mergers and acquisitions on performance of firms: A pre- and post-TRIPS analysis of India's pharmaceutical industry Asia and the Global Economy C21 C23 G34 L25 L52 L65 |
| title | The impact of mergers and acquisitions on performance of firms: A pre- and post-TRIPS analysis of India's pharmaceutical industry |
| title_full | The impact of mergers and acquisitions on performance of firms: A pre- and post-TRIPS analysis of India's pharmaceutical industry |
| title_fullStr | The impact of mergers and acquisitions on performance of firms: A pre- and post-TRIPS analysis of India's pharmaceutical industry |
| title_full_unstemmed | The impact of mergers and acquisitions on performance of firms: A pre- and post-TRIPS analysis of India's pharmaceutical industry |
| title_short | The impact of mergers and acquisitions on performance of firms: A pre- and post-TRIPS analysis of India's pharmaceutical industry |
| title_sort | impact of mergers and acquisitions on performance of firms a pre and post trips analysis of india s pharmaceutical industry |
| topic | C21 C23 G34 L25 L52 L65 |
| url | http://www.sciencedirect.com/science/article/pii/S2667111523000063 |
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