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

Alessia Rufolo, Tetiana Paientko () and Katrin Dziergwa
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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

FinTech, 2025, vol. 4, issue 3, 1-41

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.

Keywords: M&A; financial performance; profitability; liquidity; shareholders’ value (search for similar items in EconPapers)
JEL-codes: C6 F3 G O3 (search for similar items in EconPapers)
Date: 2025
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