The Impact of Acquisitions on Corporate Performance Results During the Period of Economic Slowdown: Case of Lithuania

Lakštutienė, Aušrinė; Stankevičienė, Jurgita; Norvaišienė, Rasa; Narbutiene, Jurgita

doi:10.1016/j.sbspro.2015.11.433

Cited by 10 publications

(11 citation statements)

References 10 publications

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“…Previous studies indicated that there were no statistical difference before the merger and after the merger, and others have confirmed that the financial ratios (ROA, ROE, and NPM) have decreased after the merger (Lakstutiene et al, 2015). The absence of the significant impact of the merger may be due to the economic slowdown in the Jordanian market.…”

Section: Discussionmentioning

confidence: 92%

“…These have yielded various results about the impact of mergers on the performance of companies. Some of them concluded that mergers had a positive impact on the performance (Siqueira et al, 2017;Yanan et al, 2016), whilst others found that mergers had negative impact (Bianconi & Tan, 2019;Lakstutiene et al, 2015). However, still others have shown no significant impact on the performance of companies (Pervan et al, 2015;Abu-Abbas et al, 2014).…”

Section: Literature Reviewmentioning

confidence: 99%

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The Impact of Mergers on the Financial Performance of Jordanian Public Shareholding Companies

Ayoush¹,

RABAYAH²,

JIBREEL³

2020

JAFEB

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This study examines the impact of mergers on the financial performance of the Jordanian public shareholding companies. The study employs data collected for a sample of 10 Jordanian non-financial public firms that were engaged in legal horizontal merger deals between 2000 and 2013. The data was collected from the published annual financial reports of the merging companies and comparative companies for three years before the merger and three years after the merger. Event study methodology was applied to examine the data. Four measures of financial performance (FP) were used, which are return on assets (ROA), return on equity (ROE), earnings per share (EPS), and net profit margin (NPM). Two methods were used in the analysis-the change model and the intercept model using financial performance raw data and industry-adjusted data. The findings in general showed no significant impact of mergers on the financial performance of merging firms using the change model. However, by using the intercept model, significant impact of mergers on the financial performance was found on the sample of the study. The significant impact was found for mergers on the raw ROE of the merging firms, and on the ROA and NPM of the industry-adjusted firms.

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Section: Discussionmentioning

confidence: 92%

Section: Literature Reviewmentioning

confidence: 99%

The Impact of Mergers on the Financial Performance of Jordanian Public Shareholding Companies

Ayoush¹,

RABAYAH²,

JIBREEL³

2020

JAFEB

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“…On the other hand, Patel (2018) studied the impact of merger and acquisition on the banks' performance and found that ROA, ROE, net profit ratio, the yield on investment and yield on advance has negatively affected the banks performance. In another similar study of the impact of merger and acquisition on performance found mergers and acquisitions negatively affected performance were merger deals failed to improve performance and the results showed a decrease in profitability levels (Kemal, 2011;Lakstutiene et al, 2015;Vulanovic, 2017).…”

Section: The Relationship Between Merger and Acquisition And Bank's Performancementioning

confidence: 99%

Does Bank Recapitalization Affect the Performance of the Banking Sector? The Empirical Evidence

Dikko¹,

Alifiah²,

Abdullahi³

2021

JSSM

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Over the last decade, financial institutions, especially the banking sector across emerging markets, have been faced with forceful recapitalizations as a result of numerous global financial crises. The study aims to investigate the effect of bank recapitalization approaches such as mergers and acquisitions, equity issues and interventions (bailouts) on the performance of the Nigerian banking sector. The notion that bank recapitalization heats up has been discussed and still does not present a proper consensus in the available literature. Therefore, topics that involve research on the strategies of recapitalization and their effects on bank performance are of interest in the literature. A survey method was used to gather data and the responses received from the regional, branch and senior managers in the banking sector were used to analyse and check to see if bank recapitalization actually affects the performance of the banking sector.Structural equation modelling (SEM) results indicated that bank recapitalization is positively related to bank performance. The results further revealed that all the recapitalization approaches have a positive and significant effect on bank performance. Thus, the use of recapitalization mechanisms for undercapitalized banks during crises or normal times is highly encouraged for sustainability and in the banking sector, as the backbone of the economy of any nation. Further suggestions for future research directions are also offered.

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“…Its concluded that a long-run improvement in financial performance of merging companies especially profitability ratios and that merger and acquisition is considered effective corporate restructuring method, and should become an Indian longterm business strategy of corporates. Lakstutiene et al (2015) [33] drew attention to a long scientific debate in many countries that is created from the economic results and consequences of corporate acquisitions cases which are executed under different economic conditions and by the use of various business strategies in Lithuania. The study concluded that both economic values added and profitability ratios have been decreased during the shortterm period after the acquisition transaction in most of the cases.…”

Section: Profitability Analysismentioning

confidence: 99%

Exploring Improvements of Post-Acquisitions Corporate Performance in Industrial Sector in the Egyptian Stock Market

Abdelrahman¹

2019

JFA

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The purpose of this study is to examine the impact of Egyptians Acquisitions on the post-performance of the acquired companies from the period of 2003 to 2015 by the use of event study methodology. This is done by studying the financial post-performance (includes: liquidity, activity, profitability and capital structure ratios) of a sample consists of 17 companies from the industrial sector as dependent variables, and comparing their results with the pre-performance and the acquisition event as an independent variable. By using a non-parametric Mann-Whitney-Test that can replace the unpaired ttest in the case of small samples, in addition to the factor analysis. The Study tests the significant difference between performance of the acquired companies before and after the acquisition. Empirical results for the whole sample showed a negative significant difference between both the profitability and the capital structure performance of the acquired companies before and after the acquisition. On the other hand, it showed an insignificant difference between both the liquidity and the activity performance of the acquired companies before and after the acquisition. Studying the sub-industrial sectors shows that the Industry Sector has an impact on the performance of the acquired companies and that appears in The Basic Resources and Utilities Sub-sector liquidity, profitability and capital structure performance and has no impact on financial activity performance. For the Construction and Materials Sub-sector there is no impact on the liquidity, profitability and financial activity performance. However, there is a significant impact on the capital structure. For the Personal and Household Products Sub-sector, there is a significant impact on profitability performance, and there is no impact on liquidity, financial activity, and capital structure performance. For the Food, Beverages and Pharmaceutical Sub-sector there is no impact on the liquidity, profitability and financial activity performance and there is a significant impact on capital structure performance. By studying the impact of the Capital Issued on the post-performance of the acquired companies, the researcher showed that there is an impact on the capital structure performance for the acquired companies below 50 M and on profitability performance above 50 M issued capital. On the other hand, there is no impact on the other performance measures for companies above and below 50 M issued capital. Finally, the study results introduced some useful recommendations for the acquisition events in the Egyptian Market.

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The Impact of Acquisitions on Corporate Performance Results During the Period of Economic Slowdown: Case of Lithuania

Cited by 10 publications

References 10 publications

The Impact of Mergers on the Financial Performance of Jordanian Public Shareholding Companies

The Impact of Mergers on the Financial Performance of Jordanian Public Shareholding Companies

Does Bank Recapitalization Affect the Performance of the Banking Sector? The Empirical Evidence

Exploring Improvements of Post-Acquisitions Corporate Performance in Industrial Sector in the Egyptian Stock Market

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