Investors preference towards acquirer company before deciding about their merger-based investment

This study attempts to find the investors’ preference towards acquirer company before deciding about their merger-based investment. This study also measures the association between investors preference towards industry and acquirer company. Finally, this study analyses the influence of investors expectation about pattern of return on their preference towards acquirer company. This study is based on primary data. Data has been collected from equity investors in Puducherry and Chennai. The statistical packages of Microsoft Excel, SPSS 19, STATA 10 and SmartPLS have been utilized to analyze the collected data. This study reveals that investors wish to invest in shares of acquirer companies striking merger deals with profit making target companies. This study also finds that there is a significant association between investors’ preference of industry for merger-based investment and selection of acquirer company. Finally, this study reveals that the investors expectation about pattern of return is strongly influencing their preference towards acquirer company.