International M&As of Greek listed firms at south-east Europe : effects on their accounting performance
Part of : MIBES Transactions : international journal ; Vol.5, No.1, 2011, pages 105-120
Issue:
Pages:
105-120
Abstract:
This study examines the international mergers and acquisitions (M&As) of Greek firms in South-Eastern European countries. The main objective of this paper is to evaluate the post-merger performance of Greek listed firms in the Athens Stock Exchange that executed as acquirers one merger or acquisition in a five-year-period (from 1998 to 2002). For the purpose of the study, a set of twenty ratios is employed, in order to measure firms' post-merger performance and to compare pre- and post-merger accounting data for three years before and after the M&As events. The selected countries of South-Eastern Europe for the research sample are the three countries with the larger Greek investments in that period: Romania, Bulgaria and Albania. The results revealed that the international M&As activities of the Greek listed sample firms in the selected countries of this research have not lead them to enhanced postmerger performance, but, in general, to an accounting performance deterioration that also have a negative impact on three profitability examined ratios. Also, the most interesting that is revealed is that the worsening of the two years after the M&As is greater in the next period (three years after the examined event) and there is no negative or positive ratio significant change in the first year after the international M&As. Last, the study further analyses these ratio results with the method of payment of the acquiring firms: cash and stock exchange (with minor cash amounts) ; the conclusion for this is that the method of payment has no impact on the post-merger accounting performance of the examined firms.
Subject (LC):
Keywords:
merger, acquisition, international business strategies
Notes:
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