[PDF][PDF] The impact of merger and acquisition on the profitability of medium sized technology companies listed on New York Stock Exchange
S Rafaqat, S Rafaqat, S Rafaqat, D Rafaqat - Journal of Academic Finance, 2021 - ajol.info
S Rafaqat, S Rafaqat, S Rafaqat, D Rafaqat
Journal of Academic Finance, 2021•ajol.infoObjective: The purpose of the study is to identify the influence of merger and acquisition on
the technology companies' profitability. Method: Therefore, the five medium-sized
technology companies, listed on New York Stock Exchange, and profitability ratios, including
return on assets, return on equity, and earnings per share, have been selected. The
Independent sample T-test is used for this study. The financial data that has been gathered
from the US Securities and Exchange Commission, companies' annual reports, and …
the technology companies' profitability. Method: Therefore, the five medium-sized
technology companies, listed on New York Stock Exchange, and profitability ratios, including
return on assets, return on equity, and earnings per share, have been selected. The
Independent sample T-test is used for this study. The financial data that has been gathered
from the US Securities and Exchange Commission, companies' annual reports, and …
Abstract
Objective: The purpose of the study is to identify the influence of merger and acquisition on the technology companies’ profitability.
Method: Therefore, the five medium-sized technology companies, listed on New York Stock Exchange, and profitability ratios, including return on assets, return on equity, and earnings per share, have been selected. The Independent sample T-test is used for this study. The financial data that has been gathered from the US Securities and Exchange Commission, companies’ annual reports, and NASDAQ website over the period from 2003 to 2020.
Results: The results indicate that the earnings per share ratio increased while both returns on assets and return on equity ratios deteriorated. However, the earnings per share ratio significantly improved and the return on equity significantly declined while there was no significant impact on return on assets. The study concludes that the overall profitability decreased whereas the earnings per share faced a significant rise and return on equity ratios was found to be decreased significantly.
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