Country In Long Run Research Articles

STOCK MARKET REACTIONS TO MERGERS ANNOUNCEMENT: AN EMPIRICAL STUDY ON RECENT 2020’S INDIAN MEGA BANK MERGER

Mergers and acquisitions are being used as strategic tools by Indian Corporate houses especially by Indian banking sector during last three decades of post liberalization era. Banking Sector in India has witnessed a mega merger of 10 Indian public banks into four big banks with effect from 1st April 2020 which definitely attract attention of different stakeholder who are interested to know whether these tie up events are really helpful for improving present scenario of banking industry as well as economic condition of the country in long run. But our concern in this study is to figure out the changes that occurred in shareholders wealth of the acquiring firm in short run around the announcement of merger event by detecting the responses of the share prices of acquiring bank through the procedure of event study methodology. For this study, company specific and market specific secondary data have been collected from the official website of National Stock Exchange as these companies are actively traded on said exchange. To accomplish the objective of this study we relied on figure of Average Abnormal Returns (AAR) and Cumulative Average Abnormal Returns (CAAR) for an event window of 41 days from day -20 to day +20. Return values have been statistically tested through cross sectional t-test. The notable finding of the research is that an under-reaction of market is observed before the announcement but the moment the announcement information becomes effective, investors start reacting from day +2 and the stock price jumps up, providing positive AARs to the investors. But after the positive respond to the merger information, finally investors have under-reacted to the event. CAARs figures also indicate the positive pattern of returns in the beginning of the event window but rapidly it becomes negative from day -16 to the last day of window that might be due to pandemic situation running throughout the world. KEYWORDS: Merger & Acquisition, Event Study, Stock Return, Abnormal Return, Banking Sector

Understanding TQM implementation barriers involving construction companies in a difficult environment

PurposeThe purpose of this paper is to identify the factors that affect TQM implementation in construction companies and it suggests solutions for TQM implementation in a difficult environment.Design/methodology/approachStudies were carried out at six large construction companies who ply their trade in Southern Africa and in-depth investigations were conducted to assess TQM implementation practices and associated TQM barriers. Interviews were conducted on directors and key personnel that play important roles in TQM implementation in their respective organisations. The empirical study also utilised a number of organisational documents which added rigour to the findings.FindingsThis study identified three core categories and ten main barriers affecting TQM implementation in Southern Africa construction companies. The core categories are motivation, infrastructure and penchants and tendencies while the factors are lack of quality support, poor TQM knowledge and TQM awareness, poor information sharing, temporary workers, overdependence on contract document, poor data collection measurement, undefined TQM roles and responsibilities, award to lowest bidder tendency, poor business environment and corruption.Research limitations/implicationsThe study was conducted based on companies plying their trade in Southern Africa and mostly around Malawi, Zambia and Mozambique. It does not study companies in Namibia, Zimbabwe, Angola, South Africa and Botswana.Practical implicationsTQM cannot be exported wholly from another region to a new setting without taking into consideration the local factors associated with that setting. For successful TQM implementation in construction in Southern Africa, characteristics of this region have to be known. This study illuminates a number of TQM implementation barriers associated with construction especially applied to this difficult environment. Application of this knowledge would enhance TQM and heighten competitive advantage initiatives. The proportions highlighted in this study therefore help build up the TQM implementation awareness.Social implicationsAt society level, the findings of this study indicate societal problems such as corruption and business environment which require wide level approaches to deal with these barriers. In addition, if TQM applied in road construction projects, the quality of the roads will be improved, this in turn will have direct impact on quality of life in the society, better roads means easier access to hospitals, schools and public places, better transport and movements of goods and services, etc. It can also save money for the country in long run and economic benefits to the society.Originality/valueThe factors identified in this study are based on current TQM implementation practices at established construction companies in Southern Africa. They provide a practical basis for guiding TQM in construction companies operating in difficult environments.