Skip to content
Research Article Open access CC BY 4.0

Relationship of Mergers and Acquisitions with Financial Performance: Indian Evidence

Khurshid Ali, Khalid Ashraf Chisti, Moh-Ud-Din Sangmi, Irshad Ahmad Malik

Journal of Economics, Management and Trade · pp. 1–6 · Published 27 Sep 2022

10.9734/jemt/2022/v28i1130455

Abstract

In this paper an attempt has been made to investigate the level of relationship between acquisitions/mergers and operating financial performance by making the pre and post-merger comparison of operating financial performance. The researchers have studied various aspects such as Return on Capital Employed (ROCE), Debt Equity Ratio, Return on Net worth (RONW), Net Profit Margin (NPM), Operating Profit Margin (OPM), Gross Profit Margin (GPM), Earning per Share (EPS) and Price to Earnings Ratio (P/E) so as to ascertain the relationship between pre and post-merger operating financial performance of the acquirers. For this purpose two industries are taken into consideration such as, aviation industry and oil and gas industry. The reference period of five years has been taken for every firm. The findings put forth by the study affirm that the inorganic growth decisions have not gone well, particularly, in the aviation industry for the financial performance has gone from bad to worse, however, the oil and gas industry has put forth mixed results.

Mergers acquisitions ROCE RONW NPM OPM

References (18)

  1. 1 Chapter 12: What does the Anthropocene hold for citizenship? [DOI]
  2. 2 Glamour, value and the post-acquisition performance of acquiring firms [DOI]
  3. 3 Operating Performance and the Method of Payment in Takeovers [DOI]
  4. 4 Post‐merger corporate performance: an Indian perspective [DOI]
  5. 5 An Introduction to the Methods of Inquiry in Social Sciences [DOI]
  6. 6 Productivity and operating performance of Japanese merging firms: Keiretsu-related and independent mergers [DOI]
  7. 7 The Long-Run Performance of Mergers and Acquisitions: Evidence from the Canadian Stock Market
  8. 8 Accounting measures of operating performance outcomes for Australian mergers [DOI]
  9. 9 Mergers in Indian public sector banks: can human resource practices ensure effective implementation of change? [DOI]
  10. 10 The Measurement of Post-Acquisition Performance Using EVA
  11. 11 Effects of Private and Public Canadian Mergers [DOI]
  12. 12 Corporate mergers and financial performance: a new assessment of Indian cases [DOI]
  13. 13 Are Mergers and Acquisitions Necessarily Anti-competitive? Empirical Evidence from India’s Manufacturing Sector [DOI]
  14. 14 Glamour, Value and the Post-Acquisition Performance of Acquiring Firms
  15. 15 Nankai Business Review International [DOI]
  16. 16 Comparative Models of Inquiry [DOI]
  17. 17 Productivity and operating performance of Japanese merging firms : keiretsu-related and independent mergers
  18. 18 Quest for Efficiency: Assessing the Impact of Mergers on Performance in the US Telecommunications Industry [DOI]

Cited by 1

Impact of Mergers and Acquisitions on Profitability and Solvency in the Indian Petrochemical Sector: Evidence from Reliance Industries Ltd.

B. Dutta · International Journal For Multidisciplinary Research · 2026

Related research

Article metrics

Real usage data collected on this platform.

42

Page views

0

PDF downloads

19

Outbound clicks

1

Citations

Views over time

Views by country

Approximate, from request IP at view time — not citizenship or institution. Countries with fewer than 5 views are grouped as "Other".

Traffic sources

Referring site, by host.

Views and downloads exclude known bots/crawlers. Citations combines this platform's own DOI-resolved index with each external source's own reported total — see Cited by above for individually listed citing works. Last refreshed 0 seconds ago.