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The Influence Of Mergers On The Medium-Term Financial Performance Of Romanian Companies

Author

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  • Anca-Simona HROMEI

    (Doctoral School of Economics and Business Administration, ‘Alexandru Ioan Cuza' University of Iasi, Romania)

Abstract

At the level of Romania, very few studies approach the issue of how mergers can influence the medium-term financial performance of the participating companies. International studies often obtain contradictory results when measuring the impact of mergers on the financial performance. This study aims at analysing the merger transactions that took place in Romania during the year 2011, in the trading sector. A total of 87 companies involved in merger deals were included in the sample. As measurements for the financial performance, the net turnover, the net profit and the return on sales rate have been chosen. The results show that mergers din not have a positive impact on the financial performance of the absorbing companies for the three years following the reorganizing operation. It has been identified a decrease in terms of profitability for the absorbing companies, only the level of net turnover recording significant increases in the medium term.

Suggested Citation

  • Anca-Simona HROMEI, 2014. "The Influence Of Mergers On The Medium-Term Financial Performance Of Romanian Companies," SEA - Practical Application of Science, Romanian Foundation for Business Intelligence, Editorial Department, issue 5, pages 333-340, November.
    • Handle: RePEc:cmj:seapas:y:2014:i:5:p:333-340
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    Cited by:

    1. Anca-Simona HROMEI, 2015. "Do Romanian Mergers Really Create Value?," SEA - Practical Application of Science, Romanian Foundation for Business Intelligence, Editorial Department, issue 9, pages 59-62, December.

    More about this item

    Keywords

    Mergers; Financial performance; Turnover; Net Profit; Return on Sales;
    All these keywords.

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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