This paper explores the role of institutional ownership on key aspects of merger and acquisition (M&A) activity in India, an increasingly important emerging market. Using a comprehensive sample of 545 Indian M&A deals, our findings reveal that institutional ownerships are positively associated with superior post-acquisition performance, reflecting their disciplining role in monitoring corporate performance. The study also suggests the important role of institutional ownership for a higher propensity for cross-border deals and shorter completion deal timelines. By distinguishing between investor types and evaluating multiple outcomes, Overall, the results underscore the growing governance role of institutional investors in emerging markets and offer valuable insights for managers, regulators, and investors alike.

Keywords

Mergers and Acquisitions, Institutional ownership, Acquirer performance, DII, FII, India