Mergers and Acquisitions Waves in India
Keywords:
Mergers and Acquisitions, M&A Wave Behavior, Markov Regime Switching ModelAbstract
The wave behavior of Mergers and Acquisitions (M&As) confused the researchers in this field for a long time. This study focused on the merger and acquisitions (M&A) wave hypothesis in India by applying Markov Regime Switching Model (MRSM) will provide a better representation of M&A wave behavior. The study has been used quarterly data collected from SDC Platinum Security database of Thomson Reuters, for the last 16 years starting from the 1999Q4 to 2016Q4. It’s been recognized that there are two distinct regimes viz., the normal M&A regime and wave M&A regime. The study reveals merger activity India had wave behavior. M&As activity witnessed two waves in this period; one is at the period of the subprime financial crisis of 2008 and the Chinese stock market crash of 2015.
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