ANALYSIS OF POST-MERGER PERFORMANCE OF MERGED ENTITY: A STUDY OF SELECT FINANCIAL SECTOR DEALS

Mergers and acquisitions are considered to be significant business plans among all other options of expansion that help a company develop outside and provide it a strategic edge. In the last half-century, this field has created a great volume of research and literature, particularly in the industrialized countries. Available literature evaluating long-term success of businesses after mergers in both established and emerging markets have not yet been likely to assess a definitive and assertive conclusion regarding whether combinations improved or hampered company profitability. This study undertook a sample of 23 companies merging between 2005 to 2015 where the target or acquirer is from the financial sector. PCA have applied to reduce the number of variables used in the analysis because of high correlation among the variables and paired T-test have been used to assess the impact of mergers. Significant change in results can only be seen for just a few companies and finding could not lead to concrete conclusion.