Do M&As of Greek listed firms before the economic crisis improved their current liquidity and profitability?
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Ημερομηνία
2014
Τίτλος Εφημερίδας
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Εκδότης
Δικαιώματα
Attribution-NonCommercial-NoDerivatives 4.0 Διεθνές
Άδειες
Παραπομπή
Παραπομπή
Περίληψη
This study examines the impact of mergers and acquisitions (M&As) on
liquidity as long as the profitability of listed companies at the ASE
(Athens Stock Exchange) in Greece at the beginning of the economic
crisis. Using accounting data (financial ratios), the post-merger
performance of a sample of Greek companies, listed on the Athens Stock
Exchange that executed one merger or acquisition in the two-year-period
from 2008 to 2009 as acquirers, is investigated in order to study how
firms administer liquidity and profitability before the outbreak of the
sovereign debt crisis and during the following years of economic crisis
in Greece (2010 and 2011) and if the merger decision improve their
performance. For the purpose of the study, a set of financial ratios is
employed, in order to measure firms’ performance and to compare preand
post-merger performance for two years before and after the M&As
announcements (with accounting data analysis from 2006 to 2011). The
question that tries to analyse this paper is if in the merger procedure
of Greek listed firms their decision have as business priority to
achieve higher profits and they failed to secure their viability
through their liquidity. The results revealed that M&As had a negative
impact on the post-merger performance of merger-involved firms, and
more analytically concerning the profitability ratios, but not their
liquidity levels due to the M&As events. Last, different post-merger
performance results are observed among the examined firms according to
a business industry categorization and are revealed slightly better
results for the firms with business activities in the industry of
metals, mining and constructions.
Περίληψη
Περιγραφή
JEL Classification: G34, M40