Turnaround or Contract Merger: A conceptual model to protect sick and government companies

The prolific competition and unanticipated customer loyalty gave the ideological thought to craft combat strategies among firms, now it became a warriors’ battle. To achieve this, global firms are designing tactics to become a gladiator by choosing merger & acquisition as a synergistic choice. M&A is an opportunity for target firm shareholders in a high premium, on the other hand escalating monopoly by an acquirer in the respective market. These inorganic options will increase the capitalism in mixed economy countries that result in the loss of government control on public sector enterprises and sick industries. Availing this gap, the present conceptual study is aimed to introduce a new weapon for emerging market nations to protect state control and keep public belief. Exclusively, we try to accommodate and suggest a new financial arrangement or scheme against the existing model, i.e. Leveraged buyout (LBO). Finally, this array is supported by the Indian sick industries as case examples which were disappearing now. It also ensures that the economic sustainability and progress of nation would be achieved by the proposed ‘Contract Merger’ model

Determinants of Cross-border Mergers and Acquisitions: A Comprehensive Review and Future Direction

The purpose of this paper is to review and summarize earlier studies analyzing the determinants of cross-border mergers and acquisitions (M&As). We primarily describe the motives of cross-border acquisitions and present the market performance for corporate control transactions over the period 1994-2013. Then, we illustrate the factors affecting cross-border investments and acquisitions in various taxonomies, namely deal-specific factors, firm- and industry-specific attributes, organizational learning and prior-acquisition experience, and country-specific factors. We draw special attention to the country-specific taxonomy for various reasons include economic and financial markets environment, institutional and regulatory framework, political situation (including corruption), tax system, accounting and valuation matters, geographical factors and cultural issues. We also provide a synopsis of earlier studies addressing the diversification motive in M&A decision. We thus propose that a host-country’s institutional laws and regulatory system, accounting and tax provisions, economic performance, financial markets development, investor protection, geographical, political and cultural factors distinctly affect cross-border acquisition’s completion. Lastly, we outline contemporary issues in M&A research, and suggest promising areas for future exploration

Makeup behind the Mirror; Going beyond Delisting? – A Case of NIRMA

The present realistic business case tussles with ‘De-listing and restructuring”. The fact facets, background data and tabular records with graphical preview of low cost producer of detergent from India “NIRMA Limited” discuss in this investigation report. Once upon a time, this is a likeable low cost range of detergent powder in India, now time takes to the place where it can fully streamline to sustain in the competitive prolific arena. Hence it is thriving for sales and hunting for cash flows for balancing its cost-to-benefit secrecy. Though, the man behind detergent chief and historic bore legend, Dr. Patel crafting his psycho views to uphold its market share to be through and entering in to the capital intensive business. There were mishap business announcement took place during Oct 2010, that remarked as thriving entity and on the other hand making high net worth shareholders happy were stirred authors to write this case manuscript

Why do Cross-border Merger/Acquisition Deals become Delayed, or Unsuccessful? – A Cross-Case Analysis in the Dynamic Industries

The purpose of this paper is to analyze three litigated cross-border inbound acquisitions that associated with Asian emerging market-India, namely Vodafone-Hutchison and Bharti Airtel-MTN deals in the telecommunications industry, and Vedanta-Cairn India deal with oil and gas exploration industry. To do so, we adopt a legitimate method in qualitative research, that is, case study method and thereby perform a unit of analysis and cross-case analysis. We suggest that government officials’ erratic nature and ruling political party influence were more in foreign inward deals that characterize higher bid value, listed target company, cash payment, and stronger government control in the industry. Importantly, the liability of foreignness and liability of localness was found to be severe in Indian-hosted deals that describe higher valuation, cash payment and dynamic industry. We eventually propose implications of mergers and acquisitions for extractive industries thus to enhance productivity and improve welfare measures during post-integration phase

Institutional Dichotomy and Cross-Border Inbound Acquisitions: A Study of Three Cases

The extant literature on cross-border mergers and acquisitions suggested that firm-specific, deal-specific, and country-specific determinants affect both negotiation process and post-merger integration. In particular, a great extent of strategy, international business and finance scholars argued that legal and regulatory infrastructure, level of investor protection, financial markets development, international taxation provisions, and macroeconomic indicators have been most important factors significantly affecting the cross-border acquisitions completion. In fact, we found significant knowledge gap on why cross-border acquisitions often litigate, delay and unsuccessful, especially when target firm is associated with developing country. With this in mind, we develop and analyze three litigated cross-border acquisitions connected to the host country-India: (i) Vodafone acquisition of Hutchison in 2007, (ii) unsuccessful cross-border merger between Bharti Airtel and MTN Group in 2008-09, and (iii) Vedanta Resources acquisition of Cairn India in 2010-11. To do so, we adopt qualitative case study research both to test existing theory and to build new theory. Hence, we accomplish research goals based on our new multi-case research design that assist qualitative researchers to overcome institutional barriers accountable for data collection as well as to study the emerging markets phenomenon. Regarding theory testing, we test seventeen theories propounded in management-related literature. Based on limitations of the existing theories and multi-case proofs, we develop new theory and offer lawful propositions for future research that would advance the current knowledge on institutional role in cross-border acquisitions. In addition, we also recommend an alternative foreign market entry model for making successful business entry in developing countries. We therefore conclude that a given country’s weak regulatory system benefits acquirer, target, or both; simultaneously, the behavior would adversely affect on economic benefit of that host country

Higher Education, High-impact Research and University Rankings: A Case of India

Purpose: The purpose of this paper is to discuss the current state of higher education, high-impact research and university rankings in Asian emerging market-India. Firstly, overview of higher education and government schemes for academic research is presented. Secondly, progress of high-impact research in India and China for citable documents, number of citations, cites per document and H-index in three subject categories is assessed. Lastly, we discuss potential challenges in the university education and recommend policy guidelines for betterment of the existing practices. Methodology: Being a qualitative study we have collected data from archival sources and thereby accomplished our goals based on inductive and deductive logics. Findings: Overall, Chinese universities are found to be outperforming Indian universities, especially in citable documents, number of citations, international collaboration, collaborative research projects, publications and editorship, and university rankings. For citable documents in all subjects category, United States is ranked 1st, followed by China 2nd, United Kingdom 3rd …, and India 9th. We therefore suggest that individual-, university- and country-specific factors have significant impact on high-impact research. Research limitations: The study is restricted to India. Hence, conducting a survey among government and private universities with regard to academics and research assessment measures deserves future research. Practical implications: A set of policy guidelines (research funding, collaborative research projects and research assessment council) is suggested for imparting quality academic practices and standards. Originality: This paper indeed is an original attempt while no earlier study links higher education, high-impact research and university rankings in India

Macroeconomic Change, and Cross-border Mergers and Acquisitions: The Indian Experience, 1991-2010

The purpose of this paper is to analyze the market for cross-border mergers and acquisitions (CB-M&A) representing the Asian emerging market-India for the period 1991 through 2010. I also compare the market in India among the BRIC economies (Brazil, Russia and China (including Hong Kong)) for various reasons. To do so, I use statistical data on CB-M&A transactions from UNCTAD’s World Investment Report-2011, and discuss potential changes in the market performance based on inductive and deductive logics and case examples. I check macroeconomic indicators of the BRIC group in order to support the economic, banking and financial reforms in India. Further, I highlight the internationalization process of Indian firms by supporting the data on parent corporations and foreign affiliates. I eventually draw conclusions from India’s share as a percentage of the world economy, developing economies, BRIC group and Asia. All in all, India is next to China for all selected categories

Revisiting and Reinforcing the Farmers Fox Theory: A Study (Test) of Three Cases in Cross-border Inbound Acquisitions

This paper aims to revisit and reinforce the early-development of Farmers Fox theory (Reddy et al. 2014a) through analyzing three cases in cross-border inbound acquisitions stream. A qualitative case method is adopted to explore findings from sampling cases include Vodafone-Hutchison telecom deal, Bharti Airtel-MTN broken telecom deal and Vedanta-Cairn India oil deal. We have highlighted discussions on organizational factors, due diligence issues, deal characteristics and country-specific determinants. Importantly, we have tested various theories propounded in economics and organization’s literature, and thereby established an interdisciplinary setting both to redefine the theory and to reframe the propositions. We thus propose that the government officials’ erratic nature and ruling political party influence was more in foreign inward deals that characterize higher bid value, listed target company, cash payment, and stronger government control in the industry. Lastly, the findings from this case research not only help researchers in strategy and international business but also help multinational managers participating in cross-border negotiations

Why do Cross-border Merger/Acquisition Deals become Delayed, or Unsuccessful? – A Cross-Case Analysis in the Dynamic Industries

The purpose of this paper is to analyze three litigated cross-border inbound acquisitions that associated with Asian emerging market-India, namely Vodafone-Hutchison and Bharti Airtel-MTN deals in the telecommunications industry, and Vedanta-Cairn India deal with oil and gas exploration industry. To do so, we adopt a legitimate method in qualitative research, that is, case study method and thereby perform a unit of analysis and cross-case analysis. We suggest that government officials’ erratic nature and ruling political party influence were more in foreign inward deals that characterize higher bid value, listed target company, cash payment, and stronger government control in the industry. Importantly, the liability of foreignness and liability of localness was found to be severe in Indian-hosted deals that describe higher valuation, cash payment and dynamic industry. We eventually propose implications of mergers and acquisitions for extractive industries thus to enhance productivity and improve welfare measures during post-integration phase

Extant Reviews on Entry-mode/Internationalization, Mergers & Acquisitions, and Diversification: Understanding Theories and Establishing Interdisciplinary Research

This paper aims at accomplishing three objectives while drawing attention to the speed of adapting international management practices in emerging markets. Firstly, we summarize 67 extant review studies on entry-mode/internationalization, mergers and acquisitions (M&A) and diversification. Secondly, a synopsis of 17 theories propounded in different disciplines refer to business organization and management is being presented, namely theory of foreign direct investment, market imperfections theory, theory of transaction cost economics, internalization theory, eclectic paradigm, Uppsala theory of internationalization, long-purse theory, resource-based-view theory, resource dependence theory, theory of competitive advantage, organizational learning theory and learning-by-doing, bargaining power theory, information asymmetry theory, agency theory, institutional theory, liability of foreignness, and market efficiency theory. Lastly, we propose a two-band model both for establishing interdisciplinary research and for promoting more theory building research in global strategic management. Further, we also recommend a few research arguments for potential explorations in entry-mode, M&A and diversification