The Effects of Mergers and Acquisitions on Corporate Management and Financial Performance

Guijiayi He ()
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Guijiayi He: Durham University, Department of ECONFIN

A chapter in Proceedings of the 2022 International Conference on Economics, Smart Finance and Contemporary Trade (ESFCT 2022), 2022, pp 871-877 from Springer

Abstract: Abstract Over the past thirty-five years, there have been more than one million M&A cases worldwide, but the failure rate is 70–90%. Although mergers and acquisitions are useful approaches for corporations to expand the scale, it is double-edged. Therefore, it is important to critically examine its influence on corporate performance on both positive and negative sides, in order to warn companies not to choose M&A blindly. This paper firstly emphasizes that the volatility of staff turnover rate will negatively affect corporate managerial performance after consolidation. After that, this paper points out that how will the probability, liquidity and stock price will change due to the announcement of M&A. Furthermore, the paper explains how M&A will bring different effects to the business, owing to the distinction between different M&A instruments. The whole research mainly collects secondary data from previous studies and analyses it further with reference to LVHM’s consolidated financial statements.

Keywords: M&A; Managerial effects; Financial effects (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-052-7_99

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DOI: 10.2991/978-94-6463-052-7_99

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