Accounting measures of operating performance outcomes for Australian mergers
Alex Proimos and
Journal of Applied Accounting Research, 2008, vol. 9, issue 3, 168-180
Purpose - The purpose of this paper is to analyse success at the corporate level for 72 Australian mergers between publicly listed firms during the period 1999-2004, and to reassess evidence in earlier Australian studies that contrasts findings from other countries which report a decline in post-merger operating performance. Design/methodology/approach - A number of accounting operating performance measures for profitability, cash flow, efficiency, leverage and growth are used to proxy for the success of the merger, which is defined in terms of an improvement in each merged firm's industry-adjusted operating performance between the pre and post-merger period. Both non-parametric and parametric comparisons of these measures are presented. Findings - Some evidence that mergers improve the operating performance of the post-merger firm is found. Industry adjusted profitability, cash flows, efficiency and leverage measures were higher in the post-merger period. Research limitations/implications - The findings of this study are limited by the small sample size, the focus on listed firms, and the use of only operating financial measures of merger success. Future research could examine more mergers over a longer time period, use alternative methods of performance benchmarking, and use alternative measures of merger success, such as share price performance. Originality/value - Australian mergers led to improved corporate performance during the period 1999-2004. This result is consistent with findings in other countries but has not been found in prior Australian research.
Keywords: Operations management; Acquisitions and mergers; Cash flow; Australia (search for similar items in EconPapers)
References: Add references at CitEc
Citations Track citations by RSS feed
Downloads: (external link)
http://www.emeraldinsight.com/10.1108/096754208109 ... RePEc&WT.mc_id=RePEc (text/html)
Access to full text is restricted to subscribers
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eme:jaarpp:v:9:y:2008:i:3:p:168-180
Ordering information: This journal article can be ordered from
Emerald Group Publishing, Howard House, Wagon Lane, Bingley, BD16 1WA, UK
http://emeraldgroupp ... journals.htm?id=jaar
Access Statistics for this article
Journal of Applied Accounting Research is currently edited by Julia Mundy
More articles in Journal of Applied Accounting Research from Emerald Group Publishing
Series data maintained by Virginia Chapman ().