 Impact of Merger and Acquisition on Financial Performance: Evidence from Construction and Real Estate Industry of IndiaIsha Gupta, T. V. Raman and Naliniprava Tripathy FIIB Business Review, 2023, vol. 12, issue 1, 74-84 Abstract: This article aims to examine the impact of mergers and acquisitions (M&A) on the financial performance of the construction and real estate industry, using the broad spectrum of financial ratios. The period of study is from 2011 to 2020, and paired t -test methodology has been used. It is hypothesized that there is a significant difference in the pre-M&A period and post-M&A period. The study findings conclude that profitability ratio and liquidity ratio have improved significantly, whereas leverage ratio exhibits no change in performance. In the efficiency ratio, the fixed-assets turnover ratio substantially improves, but the total asset turnover ratio and current asset turnover ratio show a slight improvement. The study concludes that the Indian construction and real estate company’s financial performance has improved overall for the acquiring firms during the post-M&A period. The study implies that the construction sector supports the synergy hypothesis, stating that M&A will improve synergy during the post-M&A period because of the consolidation of two firms’ resources. Keywords: Mergers and acquisitions (M&A); real estate; construction industry; paired t-test; ratio analysis (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:sae:fbbsrw:v:12:y:2023:i:1:p:74-84 DOI: 10.1177/23197145211053400 Access Statistics for this article More articles in FIIB Business Review |
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