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 201
- Downloads 0
Demonetisation and Indian Stock Market
Demonetisation of 500 and 1000 bank notes was announced by PM Modi on 8th Nov 2016. There were number of speculation relating to its effects on general public and different sectors of Indian economy. This paper studies t...
Financial Soundness and Shareholder Value of Private Banks in India
Financial strength and wealth maximisation are the two main aspects, important for growth and development of an organisation which is highly applicable to the financial sectors. Banks are the major part of financial sect...
Analysing Green Purchasing Behaviour through Subjective Norms and Perceived Behaviour Control
The motive behind the research is to find and analyse the impact of subjective norms and perceived behaviour control on the purchasing pattern of consumers while selecting eco-friendly products. The increase in consumer...
Impact of Capital Structure on Financial Performance: A Study of Select Automobile Companies in India
There exists a debate as to whether capital structure variables and financial performance are associated or not. This study aims to understand the movement of shareholders return in the context of capital structure compo...
Cryptocurrency: A Comparative Study of Top Five Digital Currencies in India
This paper aims to draw a comparison among the top 5 cryptocurrencies available in India based on the market capitalisation rate. It also aims to highlight the pros and cons of each category of cryptocurrencies and prefe...