An empirical study and state of play of the link between m&a operations and performance of companies
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Autores: Sarra Kaiss
- Localización: International Journal of Professional Business Review: Int. J. Prof.Bus. Rev., ISSN 2525-3654, ISSN-e 2525-3654, Vol. 9, Nº. 7, 2024 (Ejemplar dedicado a: Continuous publication; e04860)
- Idioma: inglés
- Enlaces
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Resumen
Objective: The objective of this study is to investigate the impact of external growth on firm's performance, with the aim of verify the changes that performance may have before and after M&A operation.
Theoretical Framework: In this topic, the main concepts and theories that underpin the research are presented. Efficiency theory, Value theory stand out among theories that better justify reasons why shareholders choose to deal with M&A, and thus provid a solid basis for understanding the context of the investigation.
Method: The methodology adopted for this research comprises regression analysis of Return of assets of selected firms. Data collection was carried out through CapitalIQ5 platform based in firms that belong to MENA region and carried out M&A operations between 01/01/2022 and 31/12/2022 Results and Discussion: The results obtained revealed the global evolutions of effect on the short term of the M&A operations on the companies’ performance, represented by the RoE, is globally negative by the linear hypothesis considered. In the discussion section, these results are in lign with general expectations of the operations that are basically long term.
Research Implications: The practical and theoretical implications of this research proove the negative short term impact of the M&A operations on financial performance of firms which allowed us to judge that a study spread over time will lead us to more meaningful conclusions.
Originality/Value: This study contributes to the literature by trying to study the impact of M&A opperations on financial perfomance in theoretical and empircal ways. The relevance and value of this research are evidenced by using regressions and t test statistics in order to deduct the impact of M&A operations.
