Manohar Kapse

This study assesses the impact of mergers and acquisitions on Environmental, Social, and Governance (ESG) performance and market value of acquiring companies operating in India. Data were collected and analyzed from 69 M&A announcements from January 2010 to June 2023, sourced from the Bloomberg database. The analysis reveals a positive correlation between the post-merger market value of acquiring firms and their ESG performance, indicating that an improvement in ESG factors is associated with increased market value after mergers. Additionally, a positive correlation was identified between acquiring companies’ post-merger ESG performance and their target firms’ pre-merger ESG performance. This finding suggests that when acquiring a target firm with high ESG performance, the acquirer is likely to experience an improvement in its own post-merger ESG performance. Moreover, both the post-merger market value and ESG performance of the acquirer are likely to improve with the profitability and size of firms but will have a negative impact based on the leverage components of the acquiring firms. 

Type of the article: Research Article

Abstract
This study examines how advertising strategies, namely, content, media, and design, influence brand-building efforts in rural markets, with a specific focus on the mediating role of content relevance. Anchored in the Elaboration Likelihood Model (ELM), the research recognizes that rural consumers often process advertising through the peripheral route, relying on visual, linguistic, and cultural cues rather than rational evaluation. Data were collected through a structured survey of 498 rural consumers across thirteen towns in Madhya Pradesh. Using covariance-based structural equation modelling, the study finds that advertising content (β = 0.353), media (β = 0.253), and design (β = 0.298) significantly affect brand perceptions. More importantly, content relevance emerges as a key mediator, with indirect effects ranging from β = 0.180 to 0.243 (p < 0.01), indicating that rural consumers are more likely to engage with advertising that aligns with their values, language, and lifestyle. Theoretically, the study extends the ELM framework to low-involvement consumer settings and highlights the nuanced role of cultural relevance in shaping brand engagement. Practically, the findings offer marketers a roadmap for creating locally adapted and emotionally resonant campaigns that move beyond urban-centric models. This research underscores the importance of designing inclusive advertising strategies that build lasting brand relationships with India’s diverse rural population.

Type of the article: Research Article

Abstract
Sustainable innovation has become an important driver of corporate value creation in emerging economies like India, where firms increasingly align their operations with Environmental, Social, and Governance (ESG) practices and Sustainable Development Goal 9 (SDG-9). Despite this rising importance, the financial impact of ESG and SDG-9 innovations on firm performance remains underexplored in the Indian context. This study aims to empirically examine the impact of ESG and SDG-9 innovations on firm value, profitability, and shareholder returns among the top 100 listed Indian companies during the period 2019–2023. Using panel data drawn from the Bloomberg and Refinitiv databases, the study applies multiple regression models and random-effects estimations to evaluate the relationships between innovation indicators (ESG and SDG-9 scores) and financial metrics such as Tobin’s Q, Return on Assets (ROA), and Return on Equity (ROE). The findings reveal that ESG innovation scores do not have a statistically significant effect on firm value and profitability. In contrast, SDG-9 innovation exhibits a positive and significant relationship with both ROA and ROE, indicating that companies integrating infrastructure, industrialization, and innovation goals achieve superior financial performance. On average, firms reporting SDG-9 innovations show a 4.27-point higher ROE and 0.51-point improvement in ROA than non-reporting firms. These results highlight that SDG-9 aligned innovation contributes directly to financial value creation, whereas ESG innovation yields more intangible or long-term benefits, offering critical insights for managers, investors, and policymakers promoting sustainable business growth in India.