Email this article 
Hide
Show all
IMPACT OF MERGERS AND ACQUISITIONS ON CORPORATE PERFORMANCE: A CASE STUDY OF SILKNET COMPANY
Abstract
In this paper, we examine the impact of mergers and acquisitions on corporate financial performance in Georgian company using data from financial reports. The paper suggests literature overview of mergers and acquisitions and shows Georgian company example. Our article represents and analyses JSC Silkne’s merger and acquisitions strategy, industry selections and aim of the new acquisitions. Based on the portfolio analyze, mergers and acquisition benefits are find out, as a consequence product diversification is one of the strategy used to broaden business portfolio in the case of JSC Silknet. Moreover, our research suggests financial performance trends, based on return on Equity, Return on Assets, return on Sales. The results show, if the financial performance changed positively to the company’s favor while the company was merging and acquiring new firms.
Â
Keywords
References
Andrey Golubov, Dimitris Petmezas, Nickolaos G. Travlos, (2012), Empirical mergers and acquisitions research: A review of methods, evidence and managerial implications, Handbook of Research Methods and Applications in Empirical Finance edited by Adrian Bell, Chris Brooks and Marcel Prokopczuk to be published by Edward Elgar; https://cefr.uel.edu.vn/Resources/Docs/SubDomain/cefr/Empirical%20MA%20handbook.pdf
Caldeira A., Moysés G.L., Costantin P.D., Lex S., Bertoncello S.L., (2005), Vertical Integration and Corporate Diversification Strategies – Study Based on Brazilian Industries, Conference at Instituto de Emresa, Madrid, May 25-28, The Business Association of Latin American Studies,
Cavalcanti M. et al. (2003) Gestão estratégica de negócios: evolução, cenários, diagnostico e ação. São Pau Paolo SP-Thomson Learning.
Deloitte, (2018), The State of the Deal, M&A trends 2018, https://www2.deloitte.com/content/dam/Deloitte/us/Documents/mergers-acqisitions/us-mergers-acquisitions-2018-trends-report.pdf.
Fatima, T., & Shehzad, A. (2014). An Analysis of Impact of Merger and Acquisition of Financial Performance of Banks: A case of Pakistan. Journal of Poverty, Investment and Development, 5, 29-36.
Mergers and Acquisitions: A Conceptual Review (PDF Download Available). Available from: https://www.researchgate.net/publication/283044556_Mergers_and_Acquisitions_A_Conceptual_Review [accessed May 13 2018].
Floyd A., Littleton E., (2017), MANAGING MERGER AND ACQUISITION RISKS, International Risk management institute Inc, IRMI Construction Risk Conference, November 5-8.
Furfine C., Richard J. Rosen, (2011), sites, searching, https://insight.kellogg.northwestern.edu/article/mergers_can_be_risky_business , accessed November 30, 2011.
Kotsogiannis, Constantinos, Mergers and Acquisitions: Benefits For Acquiring and Target Firms (December 1, 2008). Available at SSRN: https://ssrn.com/abstract=1465340 or http://dx.doi.org/10.2139/ssrn.1465340
Kumar, Anil & Arora, Mani. (2012). A Study on Mergers and Acquisitions – Its impact on Management and Employees.
Langhe, T.E., Ooghe, H., (2001). Are Acquisitions Worthwhile? An Empirical Study of the Post-Acquisition Performance of Privately Held Belgian Companies Involved in Take-Overs. Paper 12, Ghent University, Belgium.
Lars Bengtsson, Rikard Larsson, (2012), Researching Mergers & Acquisitions with the Case Study Method: Idiographic Understanding of Longitudinal Integration Processes, Center for Strategic Innovation Studies (CSIR) Blekinge Institute of Technology, Edward Elgar Publishing, March;
Malik, Faizan. (2014). Mergers and Acquisitions: A Conceptual Review. International Journal of Accounting and Financial Reporting. 4.
Reuben M. Badubi, (2017), Dynamic Assessment of Mergers and Acquisitions Risks in Botswana, Journal of International Business Research and Marketing Volume 2, Issue 4;
Rumelt R., 1982. Diversification Strategy and profitability, Strategic Management Journal, Volume 3, Issue 4 (Oct-Dec.);
S. Chui, B. (2011). A Risk Management Model for Merger and Acquisition. International Journal of Engineering Business Management. 3. 10.5772/50935.
Teece D. J. 2002. Dynamic capabilities. In: Lazonick W. (ed.). The In¬ternational Encyclopedia of Business and Management. Thomas Learning Publishers: London; 1497-1512.
Teece D. J. 2005. Explicating Dynamic Capabilities: Innovation Processes, Investment Decision-Making and Asset Cospecialization/Orchest ration in an (Economic) Theory of (Strategic) Management. University of California, Berkeley. (Unpublished manuscript)
Teece D. J., Pisano G. 1994. The dynamic capabilities of firms: An in¬troduction. Industrial and Corporate Change 3 (3): 537-556.
This work is licensed under a Creative Commons Attribution 3.0 License.