IDEAS home Printed from https://ideas.repec.org/a/kap/rqfnac/v20y2003i2p115-26.html
   My bibliography  Save this article

Firm Financial Performance Following Mergers

Author

Listed:
  • Ramaswamy, K P
  • Waegelein, James F

Abstract

This study, using a sample of 162 firms and industry-adjusted cash flow returns on market value of assets as performance criteria, examines the financial performance of the combined target and acquiring firms over a 5-year post-merger period in relation to the corresponding pre-merger period. We find that post-merger performance is negatively associated with relative target size and positively associated with long-term incentive compensation plans. Firms that are in dissimilar industries also show improved performance, as do firms that merged prior to 1983. Copyright 2003 by Kluwer Academic Publishers

Suggested Citation

  • Ramaswamy, K P & Waegelein, James F, 2003. "Firm Financial Performance Following Mergers," Review of Quantitative Finance and Accounting, Springer, vol. 20(2), pages 115-126, March.
  • Handle: RePEc:kap:rqfnac:v:20:y:2003:i:2:p:115-26
    as

    Download full text from publisher

    File URL: http://journals.kluweronline.com/issn/0924-865X/contents
    File Function: link to full text
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. André Betzer & Markus Doumet & Marc Goergen, 2015. "Disentangling the link between stock and accounting performance in acquisitions," The European Journal of Finance, Taylor & Francis Journals, vol. 21(9), pages 755-771, July.
    2. repec:dug:actaec:y:2017:i:2:p:220-233 is not listed on IDEAS
    3. repec:eee:advacc:v:37:y:2017:i:c:p:122-139 is not listed on IDEAS
    4. Jeffrey Harrison & Matthew Hart & Derek Oler, 2014. "Leverage and acquisition performance," Review of Quantitative Finance and Accounting, Springer, vol. 43(3), pages 571-603, October.
    5. Bogan, Vicki & Just, David, 2009. "What drives merger decision making behavior? Don't seek, don't find, and don't change your mind," Journal of Economic Behavior & Organization, Elsevier, vol. 72(3), pages 930-943, December.
    6. Reddy, K. Srinivasa & Nangia, Vinay Kumar & Agrawal, Rajat, 2012. "Corporate mergers and financial performance: A new assessment of Indian cases," MPRA Paper 60425, University Library of Munich, Germany, revised 2013.
    7. repec:eee:jocaae:v:12:y:2016:i:1:p:1-14 is not listed on IDEAS
    8. Thomas Canace & Steven Mann, 2014. "The impact of technology-motivated M&A and joint ventures on the value of IT and non-IT firms: a new examination," Review of Quantitative Finance and Accounting, Springer, vol. 43(2), pages 333-366, August.
    9. Kin Lee & Baruch Lev & Gillian Yeo, 2008. "Executive pay dispersion, corporate governance, and firm performance," Review of Quantitative Finance and Accounting, Springer, vol. 30(3), pages 315-338, April.
    10. Carol Lin & Yu-Chen Wei, 2006. "The Role of Business Ethics in Merger and Acquisition Success: An Empirical Study," Journal of Business Ethics, Springer, vol. 69(1), pages 95-109, November.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:rqfnac:v:20:y:2003:i:2:p:115-26. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla) or (Rebekah McClure). General contact details of provider: http://springer.com .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.