The Impact of Merger and Acquisition On. Performance of Financial and Non Financial Sector of Pakistan

Abstract

In Pakistan the Merger and Acquisition trend expanded after 2002 because of. Strong competition in the business environment. Merger and acquisition is a tactic or the strategy which companies adopt to sustain their position and compete their competitors. Therefore, the main reason of this study is to highlight the effect of merger and acquisition on perfonnance of the financial and non-financial sectors of Pakistan. The data was taken from the financial statements of those companies _who had done merger and acquisition in Pakistan after 2005.Total two years data to be collected, two years before the merger and acquisition and two years after merger and acquisition. All companies are listed in Pakistan stock exchange and competitive commission of Pakistan. The data of the companies is collected from concerned websites of these companies and state bank of Pakistan. The variables which are used in this research are profitability ratio,efficiecy ratio, liquidity ratio and leverage ratio.lmplying t-test on the financial ratios ,we come to know about whether there is a positive impact of merger and acquisition on the perfonnance of the company or there is no impact on the financial performance of the company. This study gives us the complete picture about the impact of merger and acquisition on the performance of financial and non-financial sector of Pakistan by using different variables and applying different techniques in order to find the result.