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M&As and Corporate Financial Performance: An Empirical Study of DAX 40 Firms

Author

Listed:
  • Alessia Rufolo

    (Lumis Living DE GmbH, 10117 Berlin, Germany)

  • Tetiana Paientko

    (Business School, HTW Berlin, 10318 Berlin, Germany)

  • Katrin Dziergwa

    (Business School, HTW Berlin, 10318 Berlin, Germany)

Abstract

This study examines the impact of mergers and acquisitions (M&As) on the financial performance of firms listed in Germany’s DAX 40 index. Although M&As are a widely used strategic tool intended to create value through synergies and market expansion, existing research provides conflicting evidence about their effectiveness. Using an empirical approach, we analyze the financial data of acquiring companies before and post-M&A transactions to evaluate changes in profitability, liquidity and solvency. Our findings suggest that financial performance does not universally improve following acquisitions. Instead, results vary significantly based on deal characteristics and internal management factors. These results suggest that, while M&A can be a pathway to growth, success depends heavily on the quality of execution and organizational integration. This paper contributes to the ongoing debate about the effectiveness of M&As and provides insights for corporate decision-makers, investors, and policy stakeholders.

Suggested Citation

  • Alessia Rufolo & Tetiana Paientko & Katrin Dziergwa, 2025. "M&As and Corporate Financial Performance: An Empirical Study of DAX 40 Firms," FinTech, MDPI, vol. 4(3), pages 1-41, August.
    • Handle: RePEc:gam:jfinte:v:4:y:2025:i:3:p:43-:d:1724935
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    References listed on IDEAS

    as
    1. Maryjane R. Rabier, 2017. "Acquisition Motives and the Distribution of Acquisition Performance," Strategic Management Journal, Wiley Blackwell, vol. 38(13), pages 2666-2681, December.
    2. Ulrike Malmendier & Enrico Moretti & Florian S Peters, 2018. "Winning by Losing: Evidence on the Long-run Effects of Mergers," The Review of Financial Studies, Society for Financial Studies, vol. 31(8), pages 3212-3264.
    3. Cornaggia, Jess & Li, Jay Yin, 2019. "The value of access to finance: Evidence from M&As," Journal of Financial Economics, Elsevier, vol. 131(1), pages 232-250.
    4. Strobl, Andreas & Bauer, Florian & Matzler, Kurt, 2020. "The impact of industry-wide and target market environmental hostility on entrepreneurial leadership in mergers and acquisitions," Journal of World Business, Elsevier, vol. 55(2).
    Full references (including those not matched with items on IDEAS)

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