Impact of Merger and Acquisition Ex-Ante and Ex-Post Performance of Pakistani Firms

Author(s)

Bilawal Ali Soomro , Faheem-ul-Hussain Dehraj , Abdul Naveed Tariq , Zaheer Abbas Awan ,

Download Full PDF Pages: 99-111 | Views: 918 | Downloads: 262 | DOI: 10.5281/zenodo.3510091

Volume 8 - September 2019 (09)

Abstract

The research in this study looks at the Mergers and Acquisitions (M&A) and highlight insight about the  performance impact  of  both financial and non-financial firms in Pakistan by using three financial ratios of Sixteen M&A in different industries have been observed from 2006-2013 reported on Karachi Stock Exchange (KSE).For quantitative techniques,SPSS 18 and data average method was used for analysis.Annual published reports of acquiring firms for the period of six years (3 years before M&A and 3 years after) combine have been used. while the acquired or merged small firms have been excluded due to the un -aviability of data concern .The study concludes that all the hypotheses of the financial performance of firms' have been rejected and identified declinig in post-M&A performance ratios. Result shows there is significant negative decline in ROA and ROE but some significant positive improvement is shown in NPM and size of firms after combination while increase in mean of  both size and inflation rate has an significant negative effect on firms ROA and ROE ratios declined post M&A period.Over all result reveals the significant negative effect of M&A on the  efficiency of firms in the post-M&A period.It can be said that better performance after M&A is not mandatory

Keywords

Mergers, Acquisitions, Financial Performance 

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