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Performance Evaluation of UK Acquiring Companies in the Pre and Post-Acquisitions Periods
Asian Journal of Economics and Empirical Research
View Archive Info| Field | Value | |
| Title |
Performance Evaluation of UK Acquiring Companies in the Pre and Post-Acquisitions Periods
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| Creator |
Ali, Khurshid
Khan, Zeeshan Khan, Numan Alsubaie, Abdul-Hamid Ibrahim Subhan, Fazal Kanadil, Moumen |
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| Description |
This paper has two objectives: first, it examines the financial performance of twenty UK based acquiring companies over the period of five years (2009-2013) using financial ratios of Liquidity, Profitability and Solvency in order to empirically determine whether there is any significant financial performance changes in the operation of the underlying companies as a result of acquisitions. Both average ratio and paired t-test analysis have been conducted. The analysis concludes that none of the ratios proved statistical significance which shows that the underlying acquisitions did not influence changes in the financial performance of the acquiring companies. The paper also examines whether shareholders make short-term gain while opting for acquisitions by analyzing stocks return over 58 days window period i.e. 29 days prior to acquisition announcement and 29 days after acquisition announcement by applying CAPM model and AAR and CAAR analysis. The analysis concludes that none of the results show statistical significance which further asserts that UK shareholders do not make gain in the short-term as a result of the acquisition activities they have undertaken.
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| Publisher |
Asian Online Journal Publishing Group
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| Date |
2016-12-01
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| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion Peer-reviewed Article |
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| Format |
application/pdf
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| Identifier |
http://www.asianonlinejournals.com/index.php/AJEER/article/view/220
10.20448/journal.501/2016.3.2/501.2.130.138 |
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| Source |
Asian Journal of Economics and Empirical Research; Vol 3 No 2 (2016); 130-138
2409-2622 2518-010X |
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| Language |
eng
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| Relation |
http://www.asianonlinejournals.com/index.php/AJEER/article/view/220/197
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