A study on impact on the firm's return on equity for the pre and post merger and acquistion in Indian company

The paper is about impact of merger and acquisition on Return on Equity in Indian company, by examining the data of three years pre-merger and post-merger financial performance, with the sample of firms chosen between the years 2006–2008. As it is stated that the study is going to undertake for Post-Merger period also after 2007 the study needs at least three years (up to 2010) to analysis the financial performance. ROE indicates how well the firm has used the resources of owners. The earning of a satisfactory return is most desirable objective of the business. The ROE reflects the extent to which this objective has been accomplished. This ratio is thus, of great interest to present as well as the prospective share holders and also of great concern to management. The present study is mainly based on secondary data. The study found that in India merging companies were taken over by companies with reputed, well known and out of most 30 huge mergers happened between 2006 and 2008. In order to evaluate the financial performance ratio analysis mean, standard deviation and ‘t’ test have been used as tools of analysis.