Impact of Mergers and Acquisitions on Financial Performance a study of Select Indian Companies

Authors

  •   Samiya Mubeen Canara Bank School of Management Studies
  •   Y. Nagaraju Canara Bank School of Management Studies, Bangalore-560001

DOI:

https://doi.org/10.21095/ajmr/2017/v10/i2/141487

Keywords:

Mergers, Acquisition, Financial Performance, Ratio Analysis, profitability, liquidity

Abstract

Many studies revealed the fact that Mergers and Acquisitions (M&A) are a risky business. The corporate evaluations show that most of the companies which completed M&A transactions disappoint to deliver on promised financial performance. But, it is an investment and the highest risks produce the highest results - whether they're success or failure. The aim of this paper is to study the impact of M&A on the financial performance of select acquirer companies in India. The objective is to analyze the impact of M&A on profitability, growth and liquidity position. The analysis is done based on the financial performance of select Indian companies for five years pre- and post-merger. The selected ten Indian Companies which have undergone M&A during 2006-2016 is taken as sample size. The secondary data for five years pre- and post-merger collected from annual audited financial statements from 2000-2017. To assess the profitability, growth and liquidity position in the select companies,appropriate financial ratios have been used. The data analysis is made with the help of a statistical tool , for the data analysis paired t test used by SPSS software to test the significance level. The findings of this study show that there is no improvement in financial performance of acquirer companies after M&A.

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Published

2018-09-18

How to Cite

Mubeen, S., & Nagaraju, Y. (2018). Impact of Mergers and Acquisitions on Financial Performance a study of Select Indian Companies. Adarsh Journal of Management Research, 10(2), 46–55. https://doi.org/10.21095/ajmr/2017/v10/i2/141487

Issue

Volume 10, Issue 2, September 2017

Section

Articles
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