We study the short term announcement period abnormal returns of acquiring firms in India, using a sample of 1177 transactions, taking place between April 1996 to March 2008. We focus on three determinants of acquirer performance – cash or stock as mode of payment, industry relatedness between...

Though an increasing number of companies worldwide are using EVA as a measure of corporate performance, it is often criticized as being a wrong measure of corporate performance. It is often argued that the market forms expectations on the market value of the company and not on the book value of...

While valuing a company using the DCF approach, we face the well-known circularity problem, where we need to know the cost of capital to value a company, and we need to know the value of the company (in particular the market debt-to-equity ratio) to find the cost of capital. Usually, analysts...

Identifying the historical value drivers of a company proves extremely useful while valuing a company. Knowing why a company has done well (or poorly) in the past is very important to understand how the company is going to perform in the future. In this paper we suggest a spreadsheet model that...

Designing a spreadsheet model to explain the portfolio theory is a highly effective way of teaching portfolio theory at an MBA level. A few of the well-known textbooks on Investments do include these spreadsheet models in the book itself. These models however assume that the number of stocks one...

In this paper, we recommend an alternative performance measure based on the true value added (TVA) of a company. We explain our measure using three Indian companies that currently use EVA-based performance evaluation system. We show that our alternative measure can address most of the...

Using nineteen measures of corporate governance, we develop a corporate governance index in this paper. We find that this corporate governance index is positively associated with financial performance measures like Tobin's Q and industry-adjusted excess stock returns of Indian companies. We find...