The Impact of Mergers on the Financial Performance of Jordanian Public Shareholding Companies

Abstract

This paper attempts to analyze post-merger impact on financial performance of merger firms in Jordanian industrial sector. Seven industrial companies involved in merger deals between 2000 and 2014 were included in the sample. Two years pre and post-merger data is used to test the significant. Paired sample t-test statistics is applied on financial ratios with the help of statistical software SPSS. The results indicate that Jordanian companies do not differ from the companies in other parts of the world. On the basis of findings, it is concluded that overall financial performance of merger industrial companies improved insignificantly in post- merger period. The profitability, efficiency, liquidity and market prospect performance variables insignificantly improved while the leverage deteriorated in post-merger period. It is concluded that merger impact on different industries of Jordanian industrial sector differently.