Mergers and Acquisitions scenario started changing in India after the introduction of liberalization process in 1991.The policy initiatives of the Government led to a structural transformation in the Indian industries. This industrial transformation has provided a launch pad for the corporate to grow and expand through Mergers and Acquisitions strategy. Corporate governance broadly refers to a set of practices that are designed to govern the behaviour of corporate enterprises. In the backdrop of several American corporate debacles, corporate governance has been increasingly seen as a means to promote healthier corporate practices and to check the errant enterprises. In this context, Mergers and Acquisitions serves as a vital instrument of corporate governance to increase corporate efficiency.
Corporate governance in the context of a company, deals with laws, procedures, practices and implicit rules that determine a company’s ability to take managerial decisions vis-a-vis its stakeholders. In this paper, an attempt has been made to present the relationship between corporate governance and mergers and acquisitions. Further, an exploratory attempt has been made to analyse the impact of Mergers and Acquisitions on share price behaviour to identify the important issues, which could improve the corporate governance practices of enterprises.
