Measuring Post Merger Performance – A Study of Metal Industry

2016 ◽  
Vol 2 (8) ◽  
Author(s):  
Sonia Sharma
Keyword(s):  
Mergers And Acquisitions ◽  
Financial Performance ◽  
International Markets ◽  
Significant Decline ◽  
Metal Industry ◽  
Integration Process ◽  
Paired Sample ◽  
Long Run ◽  
The Difference ◽  
The Impact

In today's globalised economy, mergers and acquisitions activity has gained importance caused by intensifying competition liberalization and globalization, integration of national and international markets. The aim of this paper is to study the impact of merger on the financial performance of merging companies by examining some pre- merger and post- merger financial ratios. The sample consists of 9 BSE listed companies of metal industry involved in mergers during the year 2009-10. Paired sample t-test is carried out to assess the difference in performance between post-merger and pre-merger periods. The findings showed a marginal but not significant improvement in case of liquidity and leverage but the profitability results showed significant decline in RONW and ROA which are contrary to our hypothesis. The results of this study suggest that in case of M&A, synergy can be generated in long run with the careful usage of the resources. The success of M&A deals depends on post integration process, timely action and to keep check on the costs of integration process.

ANALISIS PENGUKURAN KINERJA KEUANGAN PASCA MERGER DAN AKUISISI PADA PERUSAHAAN YANG TERDAFTAR DI BEI

2017 ◽  
Vol 2 (3) ◽  
pp. 230
Author(s):  
Edi Edi ◽  
Sylvia Rusadi
Keyword(s):  
Financial Performance ◽  
Merger And Acquisition ◽  
Significant Decline ◽  
T Test ◽  
Return On Assets ◽  
Current Ratio ◽  
Net Worth ◽  
Paired Sample ◽  
Purposive Sampling ◽  
Equity Ratio

<p><em>This paper examinea</em><em>n</em><em>effect of the financial performance of post-merger and acquisition. The financial performance is measured by using ratios, such as return on net worth, return on assets, current ratio, quick ratio, and debt to equity ratio.The samples are firms which did merger and acquisition activity during the years 200</em><em>3</em><em>-2011 and that listed on Indonesia Stock Exchange. Data which used in this research is the annual financial report three years before and three years after the mergers and acquisitions by using purposive sampling method. Analysis of the data used to test the hypothesis using paired sample t-test</em>. <em>The results of this study indicate merger firms are having decline performance, debt to equity ratio show significant decline, and other ratios also got decline, though not significant. On the other side, return on net worth and return on assets has significant decline after acquisition, except for current ratio which have insignificant decline after acquisition. </em><em>Quick</em><em> ratio and debt to equity ratio has insignificant improvements after acquisition.</em><em></em></p><br />Artikel ini meneliti pengaruh kinerja keuangan pasca merger dan akuisisi. Kinerja keuangan diukur dengan menggunakan rasio, seperti <em>return on net worth</em>,<em> return on </em><em>asssets, current ratio, quick ratio, </em>dan <em>debt to equity ratio.</em>Sampel yang digunakan adalah perusahaan yang melakukan aktivitas merger dan akuisisi selama tahun 2003-2011 dan yang terdaftar di Bursa Efek Indonesia. Data yang digunakan dalam penelitian ini adalah laporan keuangan tahunan 3 tahun sebelum dan 3 tahun sesudah merger dan akuisisi dengan menggunakan metode <em>purposive sampling</em>. Analisis data yang digunakan untuk uji hipotesis menggunakan <em>paired sample t-test</em>.Hasil dari penelitian ini menunjukkan bahwa perusahaan merger mengalami penurunan kinerja, <em>debt to equity ratio</em> menunjukkan penurunan yang signifikan, dan rasio lainnya juga mendapat penurunan, meskipun tidak signifikan. Di sisi lain<em>, return on net worth</em> dan <em>return on assets</em> memiliki penurunan yang signifikan setelah akuisisi, kecuali untuk <em>current ratio</em> yang memiliki penurunan yang tidak signifikan setelah akuisisi. <em>Quick ratio</em> dan <em>debt to equity ratio</em> memiliki peningkatan yang tidak signifikan setelah akuisisi.

scholarly journals Dampak Pandemi Covid-19 terhadap Kinerja Keuangan Perusahaan Sektor Jasa di BEI

2021 ◽  
Vol 7 (2) ◽  
pp. 227-233
Author(s):  
Maria J F Esomar ◽  
Restia Christianty
Keyword(s):  
Financial Performance ◽  
Hypothesis Testing ◽  
Sampling Method ◽  
Stock Exchange ◽  
Paired Sample ◽  
Empirical Results ◽  
Significant Difference ◽  
Before And After ◽  
The Impact ◽  
Profitability Ratios

The Covid-19 pandemic has caused many hotels, restaurants and tourism activities to be temporarily closed. It has an impact on the financial performance towards the companies engaged in this sub-sector. The objective of this study is to analyze the impact of Covid 19 towards the financial performance of companies engaged in the sub-sector of hotel, restaurant and tourism. Financial performance is measured using several ratios, namely liquidity ratios, solvability ratios, profitability ratios and market ratio. The ype of research is descriptive quantitave. The population in this study is 35 all companies in the sub-sector of hotel, restaurant and tourism listed on the Indonesia Stock Exchange in 2019-2020 period. Samples are collected from 30 companies using purposive sampling method. Hypothesis testing is conducted using the Paired Sample t-Test. The empirical results show that, in the liquidity ratio, and market ratio there is no significant difference between the periods of before and after the first recorded Covid-19 case in Indonesia. Meanwhile, in the solvability ratio and profitability ratio, there are significant differences between the two periods.

scholarly journals PENGARUH PELANTIKAN KABINET KERJA HASIL RESHUFFLE JILID II TERHADAP HARGA SAHAM LQ-45

2017 ◽  
Vol 13 (1) ◽  
pp. 1
Author(s):  
Aulia Hatmanti ◽  
Bambang Sudibyo
Keyword(s):  
Event Study ◽  
Stock Prices ◽  
Abnormal Return ◽  
T Test ◽  
Good News ◽  
Political Event ◽  
Paired Sample ◽  
The Difference ◽  
Adjusted Model ◽  
The Impact

Abstrak: Pengaruh Pelantikan Kabinet Kerja Hasil Reshuffle Jilid II terhadap Harga Saham LQ-45. Tujuan dari penelitian ini adalah untuk melihat pengaruh peristiwa politik-pelantikan Kabinet Kerja hasil reshuffle jilid II-terhadap harga saham yang terdaftar dalam kelompok saham LQ-45. Penelitian ini menggunakan metode studi peristiwa untuk melihat adanya reaksi pasar yang dapat dilihat dari adanya abnormal return pada saham. Abnormal return pada penelitian ini dihitung menggunakan mean-adjusted model. Berdasarkan hasil uji beda t-test satu sisi, terdapat abnormal return positif yang signifikan pada event day (t) dan t+3. Uji beda rata-rata menggunakan paired sample t-test yang dilakukan untuk melihat perbedaan rata-rata abnormal return pada 5 hari sebelum dan 5 hari sesudah peristiwa tidak menunjukkan adanya hasil yang signifikan. Berdasarkan hasil tersebut, dapat disimpulkan bahwa peristiwa politik berupa pelantikan Kabinet Kerja hasil reshuffle jilid II merupakan good news bagi investor. Kata kunci: studi peristiwa, abnormal return, LQ-45, peristiwa politik Abstract: The Impact of the Inauguration of 2nd Reshuffled Cabinet on LQ-45 Stock Prices. The purpose of this research is to observe the impact of the political event the inauguration of 2nd reshuffled cabinet-to LQ-45 group’s stock prices. This study used event study method to identify the market reaction that can be seen from the abnormal return on the stock prices. The abnormal return is calculated using mean-adjusted model. T-test indicates that there is a significant positive abnormal return on event day (t) and t+3. Besides, paired sample t-test was conducted to see the difference in the average abnormal return in 5 days before and five days after the events didn’t show any significant results. Based on these results, it can be concluded that the inauguration of 2nd reshuffled cabinet is good news for investors. Keywords: event study, abnormal return, LQ-45, political events

scholarly journals Impact of Demonetization Process on the Performance of Nifty

2021 ◽  
Vol 2 (1) ◽  
pp. 16-30
Author(s):  
Mohd. Shamim
Keyword(s):  
Statistical Significance ◽  
T Test ◽  
Descriptive Statistics ◽  
Periodic Review ◽  
Paired Sample ◽  
Long Run ◽  
Negative Impacts ◽  
Future Policy ◽  
The Impact ◽  
Statistical Results

This paper investigates the impact of demonetization process on the performance of Nifty 50 and its Sectorial Indices. The study uses data of closing prices from 28 June 2016 up to 20 March 2017. The study employs descriptive statistics, paired sample T test and ANOVA to evaluate the impact of demonetization process on the performance of Nifty 50 and its Sectorial Indices. It has found that there is statistical significance at the level of 5% that Nifty 50 dropped after the demonetization event as compared to the pre demonetization event. Further, the results reveal that most of Sectorial Indices of Nifty 50 sloped downward post demonetization event and the significance of the statistical results are varied from one sector to another. It is recommended that periodic review of the policy should be made to iron out the negative impacts of demonetization. Also, it is imperative to evaluate the impact of demonetization on the short, medium, and long run to avoid any grey areas for any future policy regarding cashless economy or demonetization.

scholarly journals Cross Border Mergers and Acquisitions by Indian firms- An Analysis of Pre and Post Merger performance

2013 ◽  
Vol 4 (2) ◽  
pp. 227-236
Author(s):  
Kanika Sahni ◽  
Nancy Sahni
Keyword(s):  
Mergers And Acquisitions ◽  
Financial Performance ◽  
International Markets ◽  
Rank Test ◽  
Ratio Analysis ◽  
Cross Border ◽  
Signed Rank ◽  
Different Types ◽  
Before And After ◽  
Signed Rank Test

The corporate sector all over the world is restructuring its operations through different types of consolidation strategies like mergers and acquisitions in order to face challenges posed by the new pattern of  globalisation, which has led to the greater integration of national and international markets.. The intensity of cross-border operations recorded an unprecedented surge since the mid-1990s and the same trend continues (World Investment Report, 2000).The objective of the study is to analyse and compare the pre and post-merger and acquisition financial performance of four firms- Ranbaxy, Dr Reddy, Tata Steel and Hindalco through ratio analysis. For this, the data was being collected for three years before and after the acquisition from Capitaline database. Then to compare the changes, SPSS tool- Wilcoxon Signed Rank Test  was being applied. The study concluded that cross-border Mergers and Acquisitions of the selected firms have resulted in no significant change in the financial  performance of these firms.

scholarly journals Mergers, Acquisitions and Financial Performance: A Study of Selected Financial Institutions

2019 ◽  
Vol 9 (1) ◽  
pp. 36-44
Author(s):  
Tarila Boloupremo ◽  
Samson Ogege
Keyword(s):  
Mergers And Acquisitions ◽  
Capital Structure ◽  
Financial Performance ◽  
Financial Institutions ◽  
Significant Relationship ◽  
Positive Relationship ◽  
Cost Control ◽  
Control Variable ◽  
Negative Relationship ◽  
The Impact

The aim of the study is to examine the impact of mergers and acquisition on financial performance in the Nigerian financial system. The study examined selected financial institutions in the banking sector. Specifically, some financial indicators such as asset profile, credit risk, capital structure, liquidity, size and cost control ratios, were extracted from the audited financial reports of the selected banks for the period 2000-2010 to compare the performance of the selected financial institutions in the ex-ante period and compare these performance with the ex post period of their mergers and acquisitions. Longitudinal and time series analyses were employed to observe the performance of the selected banks. Results from the analysis suggest that credit risks showed a better post merger performance, but were statistically insignificant and negatively related with the performance of the selected financial institution pre-merger. Asset profile was found to be significant and positively related with post-merger in relation to the performance of the selected financial institutions, but it was insignificant and negatively related to the financial performance of the selected firms pre-merger. Capital structure of the selected firms was found to be significant and positively related to the performance of the firms’ pre-merger, but insignificant and negatively related to the performance of the firms post-merger. Liquidity of the firms indicated a significant and positive relationship with the performance of the banks pre-merger. However, post merger result indicates that, there was no significant and positive relationship between the liquidity of the firms and financial performance post-merger. The size of the selected banks indicated a significant relationship with their performance in both the pre-merger and post-merger periods. The cost control variable indicated a statistically significant and negative relationship with the performance of the banks post-merger period, but showed no significant relationship with performance of the banks in the pre-merger period. Finally, the results indicate that mergers and acquisitions can have significant impact on the performance of the selected financial institutions in Nigeria.

Impact of Mergers and Acquisitions on Accounting-based Performance of Acquiring Firms in India

2019 ◽  
pp. 097215091985200
Author(s):  
Puja Aggarwal ◽  
Sonia Garg
Keyword(s):  
Mergers And Acquisitions ◽  
Service Sector ◽  
Manufacturing Firms ◽  
Medium Term ◽  
Paired Sample ◽  
Similar Comparison ◽  
Acquiring Firms ◽  
Restructuring Strategy ◽  
Work Done ◽  
The Impact

Purpose: Merger is a corporate restructuring strategy that affects the performance of the company on many parameters. This study aims to examine the growth of M&A transactions in India in last two decades and the impact of merger on the accounting-based performance of the acquiring company. Methodology: The data of 68 mergers during the year 2007-08 - 2011-12 is analysed to capture the said impact. The accounting-based performance is measured on seven variables divided into three categories- profitability, liquidity and solvency. The accounting-based performance five years’ pre-merger is compared with five years’ post-merger. The similar comparison is done for 3 years pre and post-merger. Average of all the 7 parameters pre and post-merger are compared arithmetically and then using paired sample ‘t’test. The firms were also divided into manufacturing and service sector firms to see the impact of merger on different categories of firms. Findings: We found that merger has significantly impacted profitability and liquidity of the acquiring firm positively in five years but had no significant impact on solvency position of the company. Service sector firms have outperformed manufacturing firms and started showing significant improvement in accounting variables in medium term. Originality: We assure the originality of the work done in this article.

Vulnerabilities of Women in Extractive Industries

2017 ◽  
Vol 2 (1) ◽  
pp. 24-31 ◽  
Author(s):  
Rebecca Adamson
Keyword(s):  
Financial Performance ◽  
Indigenous Peoples ◽  
Women's Rights ◽  
Social Performance ◽  
Women’S Rights ◽  
Global Epidemic ◽  
The Difference ◽  
Analytical Tools ◽  
The Impact ◽  
Oil Gas

Perhaps it should not be surprising that sex crimes, the sex trade and anti-woman violence, have become major and predictable by-products of oil, gas and mining extraction operations. After all, mining and drilling camps attract hundreds, even thousands of mostly male workers, typically housed in makeshift ‘man camps’. It is a global epidemic. This article looks at the market trends among investors who look at social performance as well as financial performance. It includes a case study on the difference in financial performance between the oil, gas and mining companies that uphold Indigenous peoples’ rights and those companies that do not. The results indicate that for the extractive industry and its investors, doing what is right and doing what pays are one and the same when it comes to Indigenous peoples’ rights. This article proposes that it would be the same for women’s rights and that as governments increasingly prove incapable or unwilling to protect women, we need to turn to the market and make our voices heard. What is needed are the metrics and analytical tools for assessing the impact and financial risks a company can incur, when it fails to recognize women’s rights.

Effective Use of Information Systems/Technologies in the Mergers and Acquisitions Environment

2012 ◽  
pp. 140-160
Author(s):  
Hung W. Chu ◽  
Minh Q. Huynh
Keyword(s):  
Information Systems ◽  
Mergers And Acquisitions ◽  
Financial Performance ◽  
New Products ◽  
Theory Of The Firm ◽  
Growth Strategies ◽  
Overall Efficiency ◽  
Effective Use ◽  
The Impact ◽  
Resource Based Theory

In this study, the authors examine the effects of information systems/technologies (IS/T) on the performance of firms engaged in growth strategies based on mergers and acquisitions (M&A). A model derived from a resource-based theory of the firm is developed to predict the influence of IS/T on performance of firms. Data on the financial performance of 133 firms are used to gauge the impact of IS/T on various M&A objectives. The results suggest that IS/Ts implement M&A objectives that seek to increase overall efficiency better than those that seek to introduce new products or efforts to increase sales. Future studies to examine the process of introducing new products from resource-based theory are suggested.

Nexus of Green Management, Green Marketing, Sustainability, and Financial Performance

2021 ◽  
pp. 353-373
Author(s):  
Adenike Oyelola Soogun
Keyword(s):  
Financial Performance ◽  
Environmental Sustainability ◽  
Financial Services ◽  
Marketing Strategies ◽  
Green Marketing ◽  
Green Management ◽  
Firm Financial Performance ◽  
Long Run ◽  
Holistic Practice ◽  
The Impact

Consumer and organizational awareness of environmental sustainability is ever increasing. In the era of global warming and climate change, organizations need to move away from traditional marketing strategies to green marketing strategies and green management to remain sustainable. The objectives of this chapter are to provide stakeholders with the overview and importance of green marketing, establish the link between green marketing mix and strategic green marketing, and reveal what organizations should focus on in developing green management to remain competitive and profitable. Green marketing strategies activities for financial services were highlighted, and lastly, the authors examined the impact of green management on firm financial performance. The chapter offers a holistic practice and recommendation of going green for both financial services and other businesses. Practical implications for managers were pointed out through commitment to green marketing and management to yield positive outcomes on firm financial performance in the long run.

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