An empirical investigation on the change in the impact of cost efficiency, sales growth, liquidity and leverage on financial performance after merger and acquisition of selected publicly listed companies in the Philippines

• Main Author: Estores, Clarice April
• Format: text
• Language: English
• Published: Animo Repository 2018
• Subjects: Consolidation and merger of corporations > Philippines
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/5826
• Institution: De La Salle University

This paper examines the financial performance selected publicly listed companies in the Philippines following the merger event. There are two periods of analysis: (1) five years prior to merger, and (2) five years immediately after merger. The period of empirical analysis covered from 2007 to 2017, 2012 being the year of the merger and acquisition. Major hypothesis has been tested whether there have been significant changes in the effects of cost efficiency, sales growth, liquidity and leverage to financial performance following the merger event by comparing the coefficients of the dependent variables before and after the merger and acquisition. The study population was twenty-four (24) companies that entered into merger and acquisition on year 2012. The study used total enumeration sampling method. Companies with no data found will be removed from the sample. Twenty-two (22) total companies have completed data and therefore subjected to this study. The findings show that there is a significant difference between the effects of cost efficiency, sales growth and liquidity on return on equity hence, null hypothesis was rejected. For return on asset, only change in the effects of sales growth and liquidity displayed significant difference.