VIDYASAGAR UNIVERSITY JOURNAL OF COMMERCE
VIDYASAGAR UNIVERSITY JOURNAL OF COMMERCE
VIDYASAGAR UNIVERSITY JOURNAL OF COMMERCE
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ENHANCING PR<strong>OF</strong>ITABILITY AND SHAREHOLDER VALUE THROUGH MERGER – A CASE STUDY <strong>OF</strong> ICICI BANK<br />
Closing market capitalization 36.41 27.26 81.59 180.74 290.67 524.24 759.26<br />
(Rs. bn.)<br />
Firm Value (Rs. bn.) 48.68 115.18 166.92 268.62 442.33 793.77 759.26<br />
EVA (Rs. bn.) 1.42 -1.97 21.82 14.45 15.12 25.19 71.55<br />
Change in EVA (%) - -238.73 -1207.61 -33.78 4.64 66.61 184.02<br />
MVA (Rs. bn.) 34.21 25.06 75.46 174.61 283.30 515.34 420.30<br />
Change in MVA (%) - -26.75 201.13 131.41 62.25 81.90 -18.44<br />
Table-3: Results from Bi-variate Correlations<br />
Pearson’s MVA EVA MCap CapEmp Rel. Pr. Yield RoNW<br />
MVA 1.000 0.679 0.916 0.918 0.575 -0.874 0.307<br />
Sig. Level . 0.047** 0.002* 0.002* 0.088 0.005* 0.252<br />
(1-tailed)<br />
Kendall's<br />
MVA 1.000 0.714** 0.905* 0.810* 0.551** -0.714** 0.048<br />
Sig. Level . 0.012 0.002 0.005 0.045 0.012 0.440<br />
(1-tailed)<br />
Spearman's<br />
MVA 1.000 0.857* 0.964* 0.929* 0.673** -0.857* 0.143<br />
Sig. Level . 0.007 0.000 0.001 0.049 0.007 0.380<br />
(1-tailed)<br />
N 7 7 7 7 7 7 7<br />
* Correlation is significant at the 0.01 level (1-tailed).<br />
** Correlation is significant at the 0.05 level (1-tailed).<br />
*** Correlation is significant at the 0.10 level (1-tailed).<br />
Table-4: Coefficients of Regression equations<br />
Constant EVA MCap CapEmp Rel. Pr. Yield Ro<br />
NW<br />
MVA 104.18 5.41***<br />
(1.29) (2.07)<br />
42.54 -5.62 1.08**<br />
(1.31) (-2.55) (5.60)<br />
25.18 -5.42 0.90 0.41<br />
(0.46) (-2.15) (1.82) (0.42)<br />
-254.04 -2.47 0.34 1.08 2237.3<br />
(-1.44) (-0.91) (0.65) (1.20) (1.64)<br />
-1761.61 -2.25 -0.15 2.88 5302.15 108.32<br />
(-7.21)<br />
-2528.55<br />
(-)<br />
(-3.72)<br />
-0.62<br />
(-)<br />
(-1.09)<br />
-0.67<br />
(-)<br />
(8.21)<br />
4.10<br />
(-)<br />
(9.18)<br />
6800.75<br />
(-)<br />
(6.25)<br />
160.59<br />
(-)<br />
2.47<br />
(-)<br />
Adj.<br />
R 2<br />
F<br />
0.35 4.27***<br />
0.91 30.71*<br />
0.88 16.30**<br />
0.93 19.76**<br />
1.00 324.69**<br />
1.00 -<br />
76 Vidyasagar University Journal of Commerce
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