EVALUATING POST-MERGER AND ACQUISITIONS FINANCIAL PERFORMANCE IN SELECTED INDIAN SECTOR: A TOPSIS STUDY

Abstract

Financial Performance and its analysis are very important because of the fact that the efficiency of the different sectors is crucial for the growth of the economy. In this respect, the present study carried out a performance analysis of 2 sectors namely, the Automobile sector and the Banking sector using TOPSIS technique in order to help decision makers in the country to make better decision. The financial ratio data of the selected companies has been collected for the last 15 years. Secondary data from various sources was used to reach the goal of the study.  The purpose of this paper is to foresee the post-merger effect of mergers and acquisitions activity on major organizations in the Automobile sector during the period 2008-2016 in India, and the effect of mergers and acquisitions in the Banking sector during the period, 2008-2019 in India. The methodology used in the paper is TOPSIS to rank the organizations sector-wise based on selected financial ratio analysis data. It has been interpreted, that Mahindra & Mahindra has the best performance in the merger period, and ranks first among six Automobile companies in recent15 years. Likewise, in the case of Banks, HDFC Bank has been seen as the best-performing Bank in the post-merger period and ranks first among the five selected merged Banks.