Effect of Mergers and Acquisitions on Performance of Enterprise Value
Journal Title: MUDRA: Journal of Finance and Accounting - Year 2018, Vol 5, Issue 2
Abstract
In this study, we have made an analysis on the impact of Mergers and Acquisitions (M&A) on the performance of Enterprise Value in the post-merger period. For this purpose, ten firms were selected based on the adequacy of data for a period of ten years on a year-to-year basis from 2006-2007 to 2016-2017. The firms, which had gone into the M&A process during the financial year 2011–2012 are also considered for the study. Paired samples t-test is applied to study the mean difference in performance of Enterprise Value of the acquiring firms in the pre-and post-merger periods. From the analysis, it has been found that the acquiring firms drastically improved in stock price and business performance. As a result the acquiring firms are visible among competitors with a capacity to develop into something big in the future and merged firms feel that they have chosen a good acquirer firm. Hence, most of the acquiring firms have significant change in the performance of Enterprise Value in the post-merger period.
Authors and Affiliations
T. Sathishkumar, P. N. Assai Tamby
Keywords
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- EP ID EP625780
- DOI 10.17492/mudra.v5i2.14330
- Views 198
- Downloads 0
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