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

2021 ◽  
pp. 231971452110534
Author(s):  
Isha Gupta ◽  
T. V. Raman ◽  
Naliniprava Tripathy
Keyword(s):  
Real Estate ◽  
Financial Performance ◽  
Real Estate Industry ◽  
Leverage Ratio ◽  
Turnover Ratio ◽  
Test Methodology ◽  
Significant Difference ◽  
Current Asset ◽  
Asset Turnover ◽  
The Impact

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.

Debt Financing and Agency Cost on Profitability: Are Real Estate Firms’ Performance in India Getting Affected?

2021 ◽  
Vol 17 (1-2) ◽  
pp. 43-56
Author(s):  
Pradip Kumar Mitra ◽  
Omkar Naik
Keyword(s):  
Real Estate ◽  
Phase I ◽  
Financial Performance ◽  
Phase Ii ◽  
Negative Relationship ◽  
Agency Cost ◽  
Debt Financing ◽  
Leverage Ratio ◽  
The Impact ◽  
The Relationship

This article tries to understand the relationship between agency cost, debt financing and Indian real estate companies’ performance. The study attempts to document the effect of debt on the firm’s profitability and then explores the reason behind such an impact by introducing the agency cost as a parameter. The study is conducted in two phases. Phase I is carried out to establish the relationship between debt financing and the firm’s financial performance. In Phase II, the study is conducted to understand the impact of agency cost on debt financing. Firms from the BSE Realty Index were selected for the period 2011–2018. Profitability is measured through return on equity (ROE), whereas debt financing is measured through the firm’s leverage ratio. The agency cost is measured through the asset utilisation ratio and general expense to sales ratio. Panel regression method is used to understand the impact of debt financing and agency cost on the firms’ profitability. The result of Phase I suggests a significant negative relationship between debt financing and the ROE and the result of Phase II suggests a positive relationship between the agency cost and debt financing. This means that reduction in agency cost will lead to lesser amount of debt financing thereby improving the firm’s financial performance.

scholarly journals Environmental Information Disclosure and Financial Performance – Empirical Evidence from Heavily Polluting Industries in China

2021 ◽  
Vol 261 ◽  
pp. 04038
Author(s):  
Jianfei Shen ◽  
Yidan Chen
Keyword(s):  
Financial Performance ◽  
Information Disclosure ◽  
Multiple Regression Model ◽  
Environmental Information ◽  
Environmental Accounting ◽  
Development Capacity ◽  
Current Asset ◽  
Environmental Information Disclosure ◽  
Asset Turnover ◽  
The Impact

Focusing on the quality of corporate environmental accounting information disclosure (EID), this paper attempts to explore the impact of financial performance on environmental information disclosure. We take listed companies in Chinese heavily polluting industries as the research object, and construct a multiple regression model for data analysis via SPSS. According to Chinese practice, we divide the financial indicators into four areas: solvency, operating capacity, profitability and development capacity, and select four indicators to represent them. The empirical results show that net working capital, current asset turnover and equity growth rate are positively correlated with EID, and return on total assets is negatively correlated with EID. This result means that the solvency, operating ability and development ability in financial performance can promote the improvement of EID, but profitability cannot.

scholarly journals The Impact of COVID-19 Pandemic on the Financial Performance of Firms on the Indonesia Stock Exchange

2020 ◽  
Vol 23 (2) ◽  
Author(s):  
Sunitha Devi ◽  
Ni Made Sindy Warasniasih ◽  
Putu Riesty Masdiantini
Keyword(s):  
Financial Performance ◽  
Activity Ratio ◽  
Stock Exchange ◽  
Rank Test ◽  
Short Term ◽  
Public Companies ◽  
Leverage Ratio ◽  
The Public ◽  
Significant Difference ◽  
The Impact

The COVID-19 pandemic has harmed the national economy and caused a decline in various businesses' financial performance. This study aims to examine the impact of the COVID-19 pandemic on firms' financial performance listed on the Indonesia Stock Exchange. The research samples included 214 companies, which were divided proportionally into nine sectors or 49 sub-sectors. Data analysis used was the Wilcoxon Signed Rank Test. The results show an increase in the leverage ratio and short-term activity ratio but a decrease in the public companies' liquidity ratio and profitability ratio during the COVID-19 pandemic. There was no significant difference in the liquidity ratio and leverage ratio. However, the public companies' profitability ratio and short-term activity ratio differed significantly between before and during the COVID-19 pandemic. The sector that experienced an increase in liquidity ratio, profitability ratio, and short-term activity ratio but a decrease in the leverage ratio was the consumer goods sector. In contrast, the sectors experiencing a decrease in the liquidity and profitability ratios were property, real estate and building construction, finance, trade, services, and investment sectors.

PERBEDAAN FINANCIAL PERFORMANCE PASCA SECONDARY OFFERINGS

Wahana ◽  
2019 ◽  
Vol 22 (1) ◽  
pp. 41-49
Author(s):  
Djaja Perdana ◽  
Herbowo Herbowo
Keyword(s):  
Financial Performance ◽  
Stock Exchange ◽  
Hypothesis Test ◽  
Poor Performance ◽  
Rank Test ◽  
Growth Ratio ◽  
Significant Difference ◽  
Before And After ◽  
Signed Rank Test ◽  
Asset Turnover

This study aims to examine the differences in corporate financial performance before and after secondary offerings. The financial performance is proxied by WCR, DER, Solvency, ROA, ROE, Asset Turnover (ATO) and Growth ratio which representing the value of liquidity, financing, activity, performance and growth of the firm. The study involved 67 samples of the companies listed on the Indonesia Stock Exchange conducting secondary offerings during 2008-2013 period and selected through purposive random sampling method and using Financial Statement data from 2005-2016 period. Hypothesis test is performed using Wilcoxon Signed Rank test. The results of this study indicate that there is no significant difference in the ratio of Solvency, ROA and ROE between before and after secondary offerings, but there are significant differences in the ratio of WCR, DER, Asset Turnover and Growth. WCR ratio after secondary offerings increased, while DER ratio after secondary offerings decreased, the condition of both ratios showed better performance. While the indication of poor performance seen in decreasing asset turnover ratio and growth ratio.Keywords : agency theory, financial performance, secondary offerings

ANALISIS KINERJA KEUANGAN PERUSAHAAN PROPERTI YANG TERDAFTAR DI BEI SEBELUM DAN SESUDAH KEBIJAKAN LOAN TO VALUE

2019 ◽  
Vol 4 (1) ◽  
pp. 79-90
Author(s):  
Ghaniy Ridha Prima ◽  
Hermanto Siregar ◽  
Ferry Syarifuddin
Keyword(s):  
Real Estate ◽  
Financial Performance ◽  
Stock Exchange ◽  
Sample Selection ◽  
Test Analysis ◽  
Asset Return ◽  
Return On Equity ◽  
Analysis Technique ◽  
Significant Difference ◽  
Before And After

The purpose of this study is to provide empirical evidence of the effects of the Loan to Value (LTV) policy on the financial performance of property and real estate companies listed on the Indonesia Stock Exchange (IDX). The sample selection uses a purposive sampling method of 42 property and real estate companies that meet the criteria. The research period is divided into 2 namely before the Loan to Value policy (2013-2014) and after the Loan to Value policy (2016-2017) with the Paired Sample t Test analysis technique. The test results show if the current ratio, Return on Asset, Return on Equity and Debt to Asset have significant differences between before and after the LTV policy is applied. While the fast ratio, cash ratio, net profit margin and Debt to Equity did not show a significant difference. Keywords: Financial Performance, Loan to Value, Property and Real Estate, Profitability Ratio, Liquidity Ratio, Solvability Ratio.

scholarly journals Analysis of Pre and Post Merger and Acquisition Financial Performance of Banks in Pakistan

2014 ◽  
Vol 6 (4) ◽  
pp. 177-190
Author(s):  
Qamar Abbas ◽  
Rashid Saeed . ◽  
Ehsan-Ul-Hassan . ◽  
Muhammad Shahzad Ijaz .
Keyword(s):  
Financial Performance ◽  
Banking Sector ◽  
Merger And Acquisition ◽  
Business Environment ◽  
Study Data ◽  
Financial Statement ◽  
Acquisition Performance ◽  
Significant Difference ◽  
Insignificant Difference ◽  
The Impact

Merger and Acquisition is a strategy adopted by the organizations globally to meet the needs of dynamic business environment. This strategy also has much importance in Pakistan mostly in banking sector. Therefore, the objective of the study is to assess the impact of M&A on the financial performance of banks in Pakistan. The accounting and financial data of 10 banks were used in this study. Data was taken from the financial statement analysis (FSA) by State Bank of Pakistan from the period of 20062011. For the analysis of pre and post Merger and Acquisition performance 15 financial ratios were used in the study. To compare the results Paired sample t-Test was used to measure the significant difference between pre and post M&A financial performance. The overall results show that there is no significant difference in financial performance. It is concluded that there is insignificant difference between pre and post M&A performance of banks in Pakistan.

Does the commercial real estate industry need “more pussy on the block?”

2019 ◽  
Vol 37 (5) ◽  
pp. 627-637 ◽  
Author(s):  
Dustin C. Read
Keyword(s):  
Real Estate ◽  
Gender Bias ◽  
Second Generation ◽  
Commercial Real Estate ◽  
Real Estate Industry ◽  
Structured Interviews ◽  
Content Type ◽  
Local Chapter ◽  
Professional Credibility ◽  
The Impact

Purpose In a controversial 2018 interview, commercial real estate mogul Sam Zell insinuated that companies should promote their employees based exclusively on merit and avoid purposefully taking steps to get “more pussy on the block” in the name of gender equality. The comment was criticized not only for its crassness, but also for its failure to recognize the challenges many women working in the commercial real estate industry face in their efforts to obtain the same opportunities, compensation and status as similarly-qualified men. In an effort to overcome these disparities, the purpose of this paper is to focus on the pervasiveness of second-generation gender bias and stereotyping in the field through a qualitative analysis. Design/methodology/approach Semi-structured interviews were conducted with 39 women serving as local chapter presidents of a prominent commercial real estate trade group to explore the impact of gender on their career advancement and their experiences with second-generation gender bias. Findings The findings suggest unintentional discrimination often influences women’s careers by drawing their communication skills, professional credibility and commitment to the organizations for whom they work into question. Originality/value The research contributes to the existing literature by offering additional evidence that unintentional discrimination is common in male-dominated industries, such as commercial real estate. It also provides clear examples of social cues women perceive to heighten tension along gender lines and impinge upon their ability to ascend to leadership positions.

scholarly journals Dampak Privatisasi BUMN Terhadap Kinerja Keuangan BUMN Indonesia

2020 ◽  
Vol 30 (1) ◽  
pp. 1
Author(s):  
Tapi Omas Annisa ◽  
Jeffits Khusnu Alif
Keyword(s):  
Financial Performance ◽  
Quantitative Research ◽  
Hypothesis Test ◽  
Profit Margin ◽  
Return On Assets ◽  
Turnover Ratio ◽  
Operating Profit ◽  
Total Debt ◽  
Asset Turnover ◽  
Equity Ratio

This study aims to examine the differences in state-owned companies before privatization and after privatization is conducted in terms of the company’s financial perfomance. The company’s financial performance uses 10 financial of Gross Profit Margin, Operating Profit Margin, Net Profit Margin, Return On Assets, Return on Investment, Current Ratio, Total Debt to Total Asset Ratio, Total Debt to Equity Ratio, Fix Asset Turnover Ratio, Net Asset Turnover Ratio. This study method uses quantitative research. Data analysis uses mann-whitney different test. The sample of  state-owned companies with a period consisting of 4 years before privatization and 4 years after privatization. Hypothesis test results show that the financial performance of state-owned companies after privatization is better than before privatization.

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