English (United Kingdom)

https://curated-unify.zendy.io/wp-json/zendy-region/v1/featured_content/oa?rat=en

https://curated-unify.zendy.io/wp-json/zendy-region/v1/highlighted_journal/

Global: Zendy Plus annual

Presents the access of premium content as premium feature

Premium Content

Presents the keyphrase highlighting as premium feature

Keyphrase Highlighting

Presents the summarisation as premium feature

Summarisation

Insights

Presents the pdf analysis as premium feature

PDF Analysis

Presents the zaia usage as premium feature

ZAIA

Global: Zendy Tools annual

Global: Zendy Free Plan

Global: Zendy Tools monthly

Global: Zendy Plus monthly

This paper explores the influence of M&A transactions on the financial performance of US and European companies. We have studied the sample of 138 M&A transactions performed within these two regions during the period between 2014 and 2018. We investigate the correlation between return on sales (ROS) and such variables as equity-to-enterprise value ratio. Moreover, we observe the impact of the financial crisis and industry-relatedness to M&A parties on the performance of a merged company. Most of the corporations studied both in the USA and in Europe were profitable, and remained so after mergers and acquisitions. However, despite the fact that positive values were found for the studied variables, tests for the analysis of average values in the sample show a significant deterioration in ROS in both regions. At the same time, in the USA the change in the EBIT/Total Revenue ratio averaged –6.8 %, and in the European countries –5.3 %. Regression analysis did not reveal a significant relationship between mergers and acquisitions and company performance Received: March, 2019 1st Revision: January, 2020 Accepted: May, 2020 DOI: 10.14254/20718330.2020/13-2/3 Journal of International Studies S ci en ti fi c P a pe rs © Foundation of International Studies, 2020 © CSR, 2020 Alex Borodin, Sayabek Ziyadin, Gulnara Islyam, Galina Panaedova Impact of mergers and acquisitions on companies’ financial performance 35 indicators, and the difference in values by region can be interpreted by the fact that the US entered the crisis at an earlier point in time. The significance and the sign of the EVEQ coefficient indicate that, ceteris paribus, an increase in the “attractiveness” of target companies leads to an increase in ROS. The results do not indicate any particular impact of M&A on post-M&A performance in the companies considered.