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
Related Articles
- EP ID EP625780
- DOI 10.17492/mudra.v5i2.14330
- Views 199
- Downloads 0
Effect of Demographic Profile and Investors Preferences on Investment in Mutual Funds
Investment objectives vary from individual to individual and Mutual Funds present a great number of schemes to cater to all type of investors. The ambit of services includes equity funds, debt funds, liquid funds, gilt f...
Risk Information Practices in Annual Reports: An Indo-German Collaborative Comparison
This paper looks at the information given on risks as disclosed in Indian and German annual reports. Such annual reports are a method for overcoming the information asymmetry between investors and managers by gaining inf...
Factors affecting Abnormal Returns around Bonus Issue Announcements: An Empirical Analysis of CNX 500 companies
The purpose of this paper is to find the determinants affecting the abnormal returns from bonus announcements for the period 2006 through 2014. The paper uses regression model for the study. The findings reveal that the...
Financial Risk Identification- A Taxonomy based Study
Risk taking is the foundation of business activity. Quantifying it in an accurate manner such that the magnitude, impact, and point in time effect is recognized financially is critical for efficiency in business. Both un...
Shareholders’ Value Creation and Market Price of Share: A Study in Indian Context
Shareholders’ value creation has become a matter of concern in the world of financial management in recent times. Shareholders’ value creation refers to the net value addition for the shareholders. In the present corpora...