PERFORMANCE EVALUATION OF SBI - A COMPARATIVE STUDY OF PRE AND POSTMERGER

A merger precisely means joining of two entities or two companies into one.Changing global scenario and sustainability of banks impedes the amalgamation in the banking industry as a corporate strategy. It boosts their economic and operational power, lift up their worldwide contact, accomplish synergy by unite business activities, increased performance and lessen costs. This paper discusses the six way horizontal merger between SBI with its six associate banks including Bharatiya Mahila Bank. The primary purpose of the paper is to analyse the pre and post-merger financial performance of State Bank of India with the help of different financial parameters such as debt coverage ratios, leverage ratios, investment ratios, management efficiency ratios, profitability ratios and profit and loss account ratios. The study is based on secondary data covering six years annual data of pre and post-merger period. The study evidenced that, the state bank of India is not having significant improvement in the financial performance in the postmerger period.There are several financial constraint have revealed major development during the post-merger period but most of the constraint haven't shown significant improvement during the post-merger period.

Insider Trading, Competition, and Real Activities Manipulation

We consider a setting where managers manipulate the firms’ real activities in anticipation of insider trading opportunities. Managers choose strictly higher production quantities than the quantities chosen absent insider trading, implying lower firm profit but higher consumer surplus. Through comparative statics, we show the overproduction is mitigated by the degree of competition in the industry, the manager’s current equity stake in the firm, and the precision of cost information. We also analyze the effects of insider trading in several extensions including asymmetric ownership structure, potential horizontal merger, and common market maker. This paper was accepted by Shiva Rajgopal, accounting.

Mergers with Differentiated Products: Where Do We Stand?

On the occasion of the 10th anniversary of the 2010 U.S. Horizontal Merger Guidelines, this article provides an overview of the state of economic analysis of unilateral effects in mergers with differentiated products. Drawing on our experience with merger enforcement in Europe, we discuss both static and dynamic competition, with a special emphasis on the calibration of competitive effects. We also discuss the role of market shares and structural presumptions in differentiated product markets.

Judicial Response to the 2010 Horizontal Merger Guidelines

We study how the courts have responded to the 2010 Horizontal Merger Guidelines issued by the U.S. Department of Justice and the Federal Trade Commission. Looking at decided cases, we find that both the government and merging parties rely on the 2010 Guidelines in presenting their cases, each side respectively arguing that it should win if the court properly follows them . The 2010 Guidelines had the strongest effect on the case law in the area of unilateral effects, where a number of courts have embraced them in ways that clearly depart from earlier decisions. The case law now exhibits much greater receptivity to a government showing that the merger will lead to higher prices simply due to the loss of direct competition between the two merging firms. The courts also have followed the 2010 Guidelines by more willingly defining markets around targeted customers. We do not detect any effect on decided cases of the higher concentration thresholds found in the 2010 Guidelines. Both the average pre-merger level of market concentration and the average increase in market concentration alleged by the government in litigated cases to date declined after 2010 .

The 2010 Horizontal Merger Guidelines After 10 Years

This paper introduces the Special Issue of the Review of Industrial Organization that studies the impact of the 2010 Horizontal Merger Guidelines after 10 years On August 19, 2010, the U.S. Department of Justice (DOJ) and the Federal Trade Commission (FTC) issued newly updated Horizontal Merger Guidelines (2010 Guidelines) [See https://www.ftc.gov/sites/default/files/attachments/merger-review/100819hmg.pdf.]. The 2010 Guidelines begin by stating: “These Guidelines outline the principal analytical techniques, practices, and the enforcement policy of the Department of Justice and the Federal Trade Commission (the “Agencies”) with respect to mergers and acquisitions involving actual or potential competitors (“horizontal mergers”) under the federal antitrust laws.” Since the first Merger Guidelines were issued by the DOJ 1968, the merger guidelines have been an important channel by which economic research and learning affects antitrust enforcement. Each iteration of the merger guidelines has reflected the economic thinking of the day. Each iteration also has made a substantial impact on merger enforcement and the development of antitrust law. This special issue examines the impact of the 2010 Merger Guidelines after 10 years.

Improving the Competitiveness of Enterprises Operating in the Construction Services Market

The purpose of the study is to analyze the tools that exist today to improve the competitiveness of companies in the Russian construction and repair services market, which promote their progressive development from the perspective of partnership management. The competitors’ ambition to establish, maintain, develop and utilize their own advantages and to simplify the competitive environment is realized through the establishment of interaction between the competing subjects, which can be legally identified as a competitive partnership. The authors consider the possibility of establishing a competitive partnership in the context of horizontal merger and network associations as part of the investment-and-construction complex. This research describes the proposals for expanding the practical scope of partnership at the construction services market as a factor of improving the competitiveness level of enterprises on the basis of using strategic approaches to managing production and economic activities and improving the marketing business process support.