White‐collar crime: A due diligence issue in India

Byington, J. Ralph; McGee, Jo Ann

doi:10.1002/jcaf.20621

Cited by 8 publications

(7 citation statements)

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“…We thus suggest that acquiring firm managers and M&A advisors should pay attention to the due diligence program of the target firm (Angwin, 2001). In countries like India, white-collar crimes have become a serious considering factor in due diligence and sovereign-related compliances (Byington and McGee, 2010).…”

Section: Analysis Of Sample Casesmentioning

confidence: 99%

The causes and consequences of delayed/abandoned cross-border merger & acquisition transactions

Reddy

Xie

Huang

2016

JOCM

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Purpose Drawing attention to the significant number of unsuccessful (abandoned) cross-border merger and acquisition (M&A) transactions in recent years, the purpose of this paper is to analyze three litigated cross-border inbound acquisitions that associated with an emerging economy – India, such as Vodafone-Hutchison and Bharti Airtel-MTN deals in the telecommunications industry, and Vedanta-Cairn India deal in the oil and gas exploration industry. The study intends to explore how do institutional and political environments in the host country affect the completion likelihood of cross-border acquisition negotiations. Design/methodology/approach Nested within the interdisciplinary framework, the study adopts a legitimate method in qualitative research, that is, case study method, and performs a unit of analysis and cross-case analysis of sample cases. Findings The critical analysis suggests that government officials’ erratic nature and ruling political party intervention have detrimental effects on the success of Indian-hosted cross-border deals with higher bid value, listed target firm, cash payment, and stronger government control in the target industry. The findings emerge from the cross-case analysis of sample cases contribute to the Lucas paradox – why does not capital flow from rich to poor countries and interdisciplinary M&A literature on the completion likelihood of international takeovers. Practical implications The findings have several implications for multinational managers who typically involve in cross-border negotiations. The causes and consequences of sample cases would help develop economy firms who intend to invest in emerging economies. The study also offers some implications of M&A for telecommunications and extractive industries. Originality/value Although a huge amount of extant research investigates why M&A fail to create value to the shareholders during the public announcement and post-merger stages, there is a significant dearth of research on the causes and consequences of delayed or abandoned national and international deals. The paper fills this knowledge gap by discussing an in-depth cross-case analysis of Indian-hosted cross-border acquisitions.

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Section: Analysis Of Sample Casesmentioning

confidence: 99%

The causes and consequences of delayed/abandoned cross-border merger & acquisition transactions

Reddy

Xie

Huang

2016

JOCM

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“…More importantly, Byington and McGee (2010) mentioned serious comments on white-collar crime (WCC) in India. For example, fraud related to the five World Bank health projects that included bid rigging, bribery and manipulated bids during the procurement process; credit card fraud at an Indian call center; and the fraudulent financial statements of the giant outsourcing company Satyam Computer Services, Ltd.…”

Section: Indian Deals -The Dichotomous Experiencementioning

confidence: 99%

Regulatory framework of mergers and acquisitions

Reddy¹

2016

International Journal of Law and Management

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Purpose – The purpose of this paper is to present various institutional laws that refer to mergers and acquisitions (M & As) in India and recommend a few guidelines for institutions and multinational managers participating in foreign investment and acquisition deals. Design/methodology/approach – The study is intended to review, summarize and discuss the legal framework that adheres to M & As, takeovers and foreign investment. Findings – Major observations from the comprehensive review include the fact that higher-valuation inbound deals have been delayed or have failed because of a weak financial infrastructure, erratic nature of government officials and political intervention, and the newly elected government has aimed to attract higher inflow of investments from other developed and emerging markets by easing investment rules and offering tax holidays. Research limitations/implications – This paper, indeed, reflects unseen empirical observation with regard to the characteristics of the market for acquisitions in the given country, which has been left to further research. Practical implications – The comprehensive review of acquisition laws in India and recommendations would help prospective stakeholders, namely, policymakers, M & A advisors, legal consultants, investment bankers, multinational managers and private equity firms. Originality/value – This study presents atypical work, which presents a review of M & A laws in India, and it recommends fruitful guidelines for institutions in general and managers in particular.

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“…In particular, a MNC planning to invest in India through FDI or M&As should also include in their extensive M&A due diligence efforts a search for WCC (Byington and McGee, 2010). In fact, one would argue that India has become less favored or riskiest locations for investment due to information problems, imperfect contract enforcement, inability to enforce property rights, and flawed regulatory structures (Bhaumik and Selarka, 2012;Byington and McGee, 2010;Khanna and Palepu, 2000;Nayyar, 2008 Reddy et al, 2012Reddy et al, , 2014a.…”

Section: Indian Deals-the Dichotomous Experiencementioning

confidence: 99%

“…In fact, one would argue that India has become less favored or riskiest locations for investment due to information problems, imperfect contract enforcement, inability to enforce property rights, and flawed regulatory structures (Bhaumik and Selarka, 2012;Byington and McGee, 2010;Khanna and Palepu, 2000;Nayyar, 2008 Reddy et al, 2012Reddy et al, , 2014a. To the best of our knowledge, Vodafone should be free from tax allegations raised by income tax department.…”

Section: Indian Deals-the Dichotomous Experiencementioning

confidence: 99%

Institutional Laws, and Mergers and Acquisitions in India: A Review/Recommendation

Reddy

2015

SSRN Journal

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The paper intends to review, summarize and discuss various institutional laws refer to mergers and acquisitions (M&A) in India, and thereby recommend fruitful policy guidelines for institutions and managers participating in foreign investment and acquisition deals.Further, we also show the market for value of foreign inbound and outbound deals representing India for the period 2004 through 2013. The major observations include, higher valuation inbound-deals had delayed or failed due to weak financial infrastructure, erratic nature of government officials and political intervention, and the newly elected government has aimed to attract higher inflow of investment from other developed and emerging markets by easing investment rules and offering tax holidays. The study eventually would help policy makers, M&A advisors, legal consultants and investment bankers in assorted issues, and private equity firms and multinational firms intending to invest in Indian business.

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White‐collar crime: A due diligence issue in India

Abstract: fe a t u r e a r t i c l e

Cited by 8 publications

References 0 publications

The causes and consequences of delayed/abandoned cross-border merger & acquisition transactions

The causes and consequences of delayed/abandoned cross-border merger & acquisition transactions

Regulatory framework of mergers and acquisitions

Institutional Laws, and Mergers and Acquisitions in India: A Review/Recommendation

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