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The Impact of Consolidation Industrial Jordanian Companies on Profitability and Liquidity Ratios

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  • Rana M. Airout

Abstract

This research aims to explore and concentrated on the impact of consolidate industrial Jordanian companies, on financial performance reflect on profitability and liquidity ratios and made a comparison between pre consolidate and post consolidate companies, for four industrial consolidate companies were included in the sample. Three years pre and post-consolidation data is used to test the effect. The Data took from the annual financial statements for these companies, and the data was processed by using SPSS program. The findings indicated that there are significant differences in the profitability of consolidated industrial companies before and after consolidation and there are significant differences in the liquidity of consolidated industrial companies before and after consolidation.

Suggested Citation

  • Rana M. Airout, 2017. "The Impact of Consolidation Industrial Jordanian Companies on Profitability and Liquidity Ratios," International Business Research, Canadian Center of Science and Education, vol. 10(4), pages 183-190, April.
    • Handle: RePEc:ibn:ibrjnl:v:10:y:2017:i:4:p:183-190
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    References listed on IDEAS

    as
    1. Carline, Nicholas F. & Linn, Scott C. & Yadav, Pradeep K., 2009. "Operating performance changes associated with corporate mergers and the role of corporate governance," Journal of Banking & Finance, Elsevier, vol. 33(10), pages 1829-1841, October.
    2. Kwoka, John & Pollitt, Michael, 2010. "Do mergers improve efficiency? Evidence from restructuring the US electric power sector," International Journal of Industrial Organization, Elsevier, vol. 28(6), pages 645-656, November.
    3. Owolabi & Sunday Ajao & Ogunlalu & Adewale Emmanuel, 2013. "Banking Industry Consolidation and Financial Performance of Selected Quoted Banks in Nigeria," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 3(3), pages 1-16.
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    More about this item

    Keywords

    profitability ratios; liquidity ratios; consolidation;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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