Company performance before and after a merger

Beverly, Cicilia; Sutejo, Bertha Silvia; Murhadi, Werner Ria

doi:10.2991/insyma-19.2019.8

Cited by 6 publications

(10 citation statements)

References 2 publications

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“…The post-merger shareholder earnings also improve in the post-merger because most government policies favour the food and agriculture industries because of their significant contribution to economic growth; for example, in terms of GDP. The results are in line with studies of other Indian industries both in case of domestic and international [8,18,20,28,39,[51][52][53][54][55]. It can be inferred that M&A produces results in the long term.…”

Section: Discussionsupporting

confidence: 88%

A Study on Impact of Merger and Acquisition on Financial Performance of Agri-Food Companies

Gupta¹,

Raman

2022

jour

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The purpose of this study is to explore the expansion of merger and acquisition (M&A) literature in the context of Indian studies and examine the impact of mergers and acquisitions on various financial performance parameters of India’s Agri-Food companies. The period of study is from 2011 to 2019, and Wilcoxon Sign Rank methodology has been used. The study hypothesized that there is significant growth in Indian literature of M&A and there is a significant difference in the operating performance, financial performance and shareholders’ return of acquiring firms during the period of pre-M&A and post-M&A. The study findings state that the literature of M&A in India increases significantly, and the operating ratio, financial ratio, and shareholder return also exhibit a significant improvement whereas the expense ratio related to the operating ratio shows no improvement in performance. The study concludes that the India Agri-Food company’s financial performance has improved overall for the acquiring firms during the post-M&A period.

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Section: Discussionsupporting

confidence: 88%

A Study on Impact of Merger and Acquisition on Financial Performance of Agri-Food Companies

Gupta¹,

Raman

2022

jour

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“…Their findings showed that the operating performance, financial performance and shareholders' wealth increased during the post-M&A period but were statistically insignificant. Beverly et al (2019) analysed the financial performance of Indonesian non-financial companies, from 2010 to 2014, using 14 major ratios related to profitability, leverage, efficiency and liquidity. They found that merging firms had outperformed during the post-merger period.…”

Section: Literature Reviewmentioning

confidence: 99%

Impact of Merger and Acquisition on Financial Performance: Evidence from Construction and Real Estate Industry of India

Gupta

Raman

Tripathy

2021

FIIB Business Review

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This article aims to examine the impact of mergers and acquisitions (M&A) on the financial performance of the construction and real estate industry, using the broad spectrum of financial ratios. The period of study is from 2011 to 2020, and paired t-test methodology has been used. It is hypothesized that there is a significant difference in the pre-M&A period and post-M&A period. The study findings conclude that profitability ratio and liquidity ratio have improved significantly, whereas leverage ratio exhibits no change in performance. In the efficiency ratio, the fixed-assets turnover ratio substantially improves, but the total asset turnover ratio and current asset turnover ratio show a slight improvement. The study concludes that the Indian construction and real estate company’s financial performance has improved overall for the acquiring firms during the post-M&A period. The study implies that the construction sector supports the synergy hypothesis, stating that M&A will improve synergy during the post-M&A period because of the consolidation of two firms’ resources.

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“…After the results appeared from different tests, the next step was to draw conclusions. The basis for drawing conclusions from these statistical results is if the probability is less than α, then the research hypothesis was not rejected, Beverly [12]. This means there is a significant difference between bank performance, credit, market, liquidity, operational, and bank capital level before and after the merger.…”

Section: The Results Of Analysis Of Bank Performance Tests Before And...mentioning

confidence: 98%

The Impact of Mergers on the Performance of Conventional Banks in Indonesia

Ekadjaja,

Siswanto,

Rorlen

2022

Proceedings of the Tenth International Conference on Entrepreneurship and Business Management 2021 (ICEBM 2021)

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Merger is one of the efforts to increase the company's growth non-organically which requires large costs and better management capabilities. This study aimed to determine the impact of mergers on bank performance, which indirectly affects the bank health level. The subjects of this research were 12 conventional banks in Indonesia which have merged horizontally from 2007 to 2019. The variables in this study are those related to bank performance improvement, such as risk-based bank-rating ratio. The results show that there is no difference between bank performance, credit level, operational level, and capital level between before and after the merger. By conducting the merger, it turns out that the average bank performance does not have a positive impact, and this is related to the increase in credit level, operational level, and liquidity level, which are not aligned with an increase in market risk and bank capital level.

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Company performance before and after a merger

Cited by 6 publications

References 2 publications

A Study on Impact of Merger and Acquisition on Financial Performance of Agri-Food Companies

A Study on Impact of Merger and Acquisition on Financial Performance of Agri-Food Companies

Impact of Merger and Acquisition on Financial Performance: Evidence from Construction and Real Estate Industry of India

The Impact of Mergers on the Performance of Conventional Banks in Indonesia

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