• ISSN: 2010-023X (Print)
    • Abbreviated Title: Int. J. Trade, Economics and Financ.
    • Frequency: Quaterly
    • DOI: 10.18178/IJTEF
    • Editor-in-Chief: Prof.Tung-Zong (Donald) Chang
    • Managing Editor: Ms. Shira. W. Lu
    • Abstracting/ Indexing:  Crossref, Electronic Journals Library , EBSCO
    • E-mail: ijtef.editorial.office@gmail.com
IJTEF 2012 Vol.3(2): 85-90 ISSN: 2010-023X
DOI: 10.7763/IJTEF.2012.V3.178

Importance of stock index in acquisition of Indian companies

Partha Sen

Abstract—Overall acquisition is very frequent monthly event in India in this higher growth stage. These acquisitions are mostly paid through cash as single medium but presence of stock is low for overall acquisition and very negligible for foreign acquirers. Along with this the existence of FDI and foreign acquisition is also significant. In this article the data set from 2000 to 2010 is compiled for research. During this time frame, researcher has identified the presence of wave of acquisition correlated to index. NIFTY is considered as stock index and which has significantly affected the total number of acquisition, acquisition through stock as medium and foreign acquisition of Indian firms at 0.01% level. This can support the existence of market timing theory in acquisition of Indian firms by local firms and foreign firms.

Index Terms—FDI, acquisitions, NIFTY, Regression, t-test, F-test, ANOVA.

A. Joshi is with Indian Institute of Management, Shillong (email: anurag.joshi2 @gmail.com).

 

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Cite: Partha Sen , "Importance of stock index in acquisition of Indian companies ," International Journal of Trade, Economics and Finance vol. 3, no. 2, pp. 85-90, 2012.

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