Do outbound mergers & acquisitions affect liquidity of the acquirers: A study of indian acquiring firms

The mergers and acquisitions present a good opportunity to corporates to accomplish financial and operational growth. The aim of this paper is to understand if there is an impact of cross border merger and acquisition on the liquidity position of the acquiring firm. In order to test this assumption, the pre and post-merger liquidity ratios of 30 Indian firms which had acquired a foreign firm during the period April 2008 to March 2018 were compared. The statistical tests for hypotheses that were used to analyze the data were Paired Samples t-Test and Wilcoxon Signed Ranks Test. The study found out that there is a negative impact on the post-merger performance of the acquiring firms.