Year of Graduation
The Influence of Mergers and Acquisitions on Company Performance in the USA and Europe: Comparative Analysis
The effectiveness of corporate mergers and acquisitions has been the subject of the scientific community for many years. This paper explores the influence of M&A transactions on the financial performance of US and European companies. It contains a review of a sample of 138 M&A transactions made within the two mentioned regions during the period from 2006 to 2008. The results of regression models and additional tests indicate a significant deterioration of the observed measures after the deal. The model did not reveal the impact of M&A transactions on the change of financial performance of selected companies. However the research revealed the influence of crisis on performance of US companies. This study also allowed to compare different methods of payment in terms of their influence on financial performance.