Determinants of Mergers and Acquisitions in Indian Pharmaceutical Industry
Keywords:Mergers and Acquisitions; Pharmaceutical Industry; Logit Analysis
M&A turned out to be significant form of corporate restructuring in post globalization period in Indian industries. The phenomenon is considered to be the most important strategy for gaining competitive advantage for firms. This study attempts to find out the determinants of M&A in Indian pharmaceutical industry. We use the PROWESS database provided by the Center for Monitoring Indian Economy for the period of 2001-2010. The results of the Logit analysis suggests that large and multinational affiliated firms are investing more in M&A activities. Similarly, firms reporting excess capacity and high R&D investments are relying heavily on M&A to restructure and consolidate their position in the industry.