Analysis on financial performance and efficiency changes of companies for pre and posta cquisitions activity / Norsyazni Mohamad Sulaiman

• Main Author: Mohamad Sulaiman, Norsyazni
• Format: Student Project
• Language: English
• Published: 2012
• Subjects: Liquidity; Profits. Corporate profits; Investment, capital formation, speculation; Financial leverage
• Online Access: http://ir.uitm.edu.my/id/eprint/40954/1/40954.pdf; http://ir.uitm.edu.my/id/eprint/40954/

The objective of this study to find out whether the companies deal in acquisitions had achieved performance efficiency during the post acquisition period namely in the area of profitability, liquidity, activity and leverage ratio performance. There were 45 companies in Malaysia done the acquisition activity for the year 2005 until 2007 involved in this study. The period considered being measurement for pre and post acquisition was the average of 3 years before and the average of 3 years after the acquisitions deal. In conduct this study, the ratios involved in this study were ROA, ROA, current ratio, quick ratio, net working capital, inventory turnover, debt to equity, debt to total asset and times interest earned. The method used in this was done by pairing the sample t-test of all ratios to determine the significance differences in financial performance pre and post acquisition activity. The result of Paired Sample T Test in this study shows that majority of ratios was significantly different after the deal except quick ratio which is the mean of quick ratio for post performance higher than the mean of quick ratio for pre performance