The Effect of Macroeconomic Variables and The Stock Market on The Financial Performance of Companies Two Years After The Merger and Acquisition

This paper analyzes long-term equilibrium relationships between a group of macroeconomic variables and the Karachi Stock Exchange Index. The macroeconomic variables are represented by the industrial production index, the consumer price index, M1, and the value of an investment earning the money market rate. We employ a vector error correction model to explore such relationships during 1973:1 to 2004:4. We found that these five variables are cointegrated and two long-term equilibrium relationships exist among these variables. Our results indicated a "causal" relationship between the stock market and the economy. Analysis of our results indicates that industrial production is the largest positive determinant of Pakistani stock prices, while inflation is the largest negative determinant of stock prices in Pakistan. We found that while macroeconomic variables Granger-caused stock price movements, the reverse causality was observed in case of industrial production and stock prices. Furthermore, we found that statistically significant lag lengths between fluctuations in the stock market and changes in the real economy are relatively short.

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Macroeconomic Variables, Volatility and Stock Market Returns: A Case of Nairobi Securities Exchange, Kenya

SSRN Electronic Journal ◽

10.2139/ssrn.2400424 ◽

2014 ◽

Author(s):

Evans Kirui ◽

Nelson H.W. Wawire ◽

Perez O. Onono

Keyword(s):

Stock Market ◽

Market Returns ◽

Stock Market Returns ◽

Macroeconomic Variables

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

Jurnal Benefita ◽

10.22216/jbe.v2i3.1435 ◽

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

This paper examineaneffect 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 2003-2011 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. 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. Quick ratio and debt to equity ratio has insignificant improvements after acquisition. Artikel ini meneliti pengaruh kinerja keuangan pasca merger dan akuisisi. Kinerja keuangan diukur dengan menggunakan rasio, seperti return on net worth, return on asssets, current ratio, quick ratio, dan debt to equity ratio.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 purposive sampling. Analisis data yang digunakan untuk uji hipotesis menggunakan paired sample t-test.Hasil dari penelitian ini menunjukkan bahwa perusahaan merger mengalami penurunan kinerja, debt to equity ratio menunjukkan penurunan yang signifikan, dan rasio lainnya juga mendapat penurunan, meskipun tidak signifikan. Di sisi lain, return on net worth dan return on assets memiliki penurunan yang signifikan setelah akuisisi, kecuali untuk current ratio yang memiliki penurunan yang tidak signifikan setelah akuisisi. Quick ratio dan debt to equity ratio memiliki peningkatan yang tidak signifikan setelah akuisisi.

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Financial Performance of Non-oil Manufacturing Companies Listed on the Libyan Stock Market (LSM): Mixed Methods Study

International Journal of Accounting and Financial Reporting ◽

10.5296/ijafr.v9i4.15730 ◽

2019 ◽

Vol 9 (4) ◽

pp. 77

Author(s):

Khalifa Mohamed Khalifa Omar

Keyword(s):

Statistical Analysis ◽

Stock Market ◽

Financial Performance ◽

Manufacturing Companies ◽

Analysis Method ◽

Affecting Factors ◽

Structured Interviews ◽

Turnover Ratio ◽

Statistical Effect ◽

Statistical Analysis Method

The major objective of this study is to assess the financial performance and identify the affecting factors in this performance of non-oil manufacturing companies from 1999 to 2008. The study sample consisted of all non-oil manufacturing companies' enlisted at Libyan stock market which count (8). The data collected was analyzed by using statistical analysis method such as descriptive statistics, correlation test, Multiple- regression, as well as semi-structured interviews method. The results regarding to the statistical analysis method (net working capital, inventory turnover ratio, selling and general administrative expenses ratio, and company size and company age), have a positive statistical effect on the financial performance(ROA), while the variables of (current ratio, quick ratio and account receivable turnover ratio), have a negative statistical effect on the financial performance (ROA). The results regarding to semi-structured interviews method, reveal that the respondents in the interviews were confirmed that the selected factors have a significant effect on financial performance (ROA). The researcher recommended that the selected companies must consider the listed decision on the Libyan stock market; even when their financial performance is good.

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