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The Evolution Of The Return Rates In The Case Of Romanian Merged Companies

Author

Listed:
  • Anca-Simona HROMEI

    (Doctoral School of Economics and Business Administration, ‘AlexandruIoanCuza’ University of Iasi, Romania)

Abstract

Nowadays, merger transactions are more and more popular, even at the level of Romania. Together with this trend, the need to identify whether these restructuring operations lead to the expected results becomes increasingly evident. This paper aims at analysing the financial performance of 87 Romanian companies from the trading sector, which participated in merger deals during the year 2011. It was considered that the three years’ evolution of the return on equity (ROE) and the return on assets (ROA) rates could offer a complete image of the financial condition of the companies and the way these were influenced because of participating in the merger. These return rates were also compared with the medium levels recorded nationally for the same activity sector. It was found that in terms of both ROE and ROA the absorbing companies were negatively influenced, the medium-term financial performance being affectedbecause of the restructuring, their majority even failing to reach the average sectorial levels.

Suggested Citation

  • Anca-Simona HROMEI, 2015. "The Evolution Of The Return Rates In The Case Of Romanian Merged Companies," SEA - Practical Application of Science, Romanian Foundation for Business Intelligence, Editorial Department, issue 7, pages 283-288, April.
    • Handle: RePEc:cmj:seapas:y:2015:i:7:p:283-288
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    More about this item

    Keywords

    Mergers; Financial performance; Return on Assets; Return on Equity;
    All these keywords.

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General

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