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Financial Implication of Merger and Acquisition on the Performance of Companies

International journal of financial management, 2022-01, Vol.12 (1), p.1

Copyright Publishing India Group 2022 ;ISSN: 2229-5682 ;EISSN: 2229-5690

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  • Title:
    Financial Implication of Merger and Acquisition on the Performance of Companies
  • Author: Vipin, H ; Manmadhan, Mithra
  • Subjects: Corporate profits ; Current liabilities
  • Is Part Of: International journal of financial management, 2022-01, Vol.12 (1), p.1
  • Description: Mergers and acquisitions is the process of merging companies or assets through various financial transactions, such as mergers, acquisitions, consolidations, and management buyouts. Therefore, similar companies in an industry might be used to value a company objectively. The study takes five Indian companies: Sun Pharmaceuticals, TCS, Reliance, Infosys, and Thomas Cook. The companies have undergone mergers and acquisitions in 2014-2015. The researcher focuses on finding whether there is a change in the shareholder’s wealth, liquidity position, and profitability because of the mergers and acquisitions. Various financial ratios like EPS, current ratio, quick ratio, net profit ratio, and gross profit ratio were analysed. The study only focused on the secondary data since it was the only one needed. The secondary data were obtained from the company websites and other finance-related websites like money control. With the data thus received, the study was conducted. By carrying out paired sample t-test, the various hypotheses were accepted or rejected. The paired sample t-test was done with the help of SPSS. The trend analysis of current assets and current liabilities were also carried out. The study showed that mergers and acquisitions significantly impacted at least one factor considered for the study for each company. The researcher could only conduct the study with the data available, and the unavailability of various secondary data limited the study to a certain extent.
  • Publisher: New Delhi: Publishing India Group
  • Language: English
  • Identifier: ISSN: 2229-5682
    EISSN: 2229-5690
  • Source: AUTh Library subscriptions: ProQuest Central

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