Assistant Professor and HOD of, Department of Commerce, P. R. L. S. Government Post Graduate College, Alapur, Ambedkar Nagar, Uttar Pradesh. E-mail id: rai_shreeprakash@rediffmail.com or, rai.shreeprakash239@gmail.com
Online published on 21 September, 2016.
The present study analyses the impact of M&As on long-term operating performance preand post-merger of the combined entity on completion of M&A deals during 2000–2010 using the cash flow returns on operating assets at book as well as market value. The changes in operating performance attributable to merger and acquisition are measured by comparing the post and pre-merger operating cash flows scaled by the operating assets three years before and after the year of M&A. This study uses a sample of 51 pairs of acquiring and target firms involved in M&As during the period April 1, 2000 to March 31, 2010. M&As as strategy of growth is found not helping in improving corporate performance for the combined firm in the long term based on evaluation of long term operating performance The difference between AIACFi, POST and AIACFi, PRE is found insignificant based on both the book as well as the market value.
Mergers, acquisitions, acquirers, targets, combined entity, operating performance, cash flow returns
