THE EVOLUTION OF THE RETURN RATES IN THE CASE OF ROMANIAN MERGED COMPANIES
Nowadays, merger transactions are more and more popular, even at the level of Romania. Together with this trend, the need to identify whether these restructuring operations lead to the expected results becomes increasingly evident. This paper aims at analysing the financial performance of 87 Romania...
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| Format: | Article |
| Language: | English |
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Romanian Foundation for Business Intelligence
2015-04-01
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| Series: | SEA: Practical Application of Science |
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| Online Access: |
http://seaopenresearch.eu/Journals/articles/SPAS_7_39.pdf
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| _version_ | 1818584669169385472 |
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| author | Anca-Simona HROMEI |
| author_facet | Anca-Simona HROMEI |
| author_sort | Anca-Simona HROMEI |
| collection | DOAJ |
| description | Nowadays, merger transactions are more and more popular, even at the level of Romania. Together with this trend, the need to identify whether these restructuring operations lead to the expected results becomes increasingly evident. This paper aims at analysing the financial performance of 87 Romanian companies from the trading sector, which participated in merger deals during the year 2011. It was considered that the three years’ evolution of the return on equity (ROE) and the return on assets (ROA) rates could offer a complete image of the financial condition of the companies and the way these were influenced because of participating in the merger. These return rates were also compared with the medium levels recorded nationally for the same activity sector. It was found that in terms of both ROE and ROA the absorbing companies were negatively influenced, the medium-term financial performance being affectedbecause of the restructuring, their majority even failing to reach the average sectorial levels. |
| first_indexed | 2024-12-16T08:24:51Z |
| format | Article |
| id | doaj.art-67156eae759d41e194872560dd4af3f5 |
| institution | Directory Open Access Journal |
| issn | 2360-2554 |
| language | English |
| last_indexed | 2024-12-16T08:24:51Z |
| publishDate | 2015-04-01 |
| publisher | Romanian Foundation for Business Intelligence |
| record_format | Article |
| series | SEA: Practical Application of Science |
| spelling | doaj.art-67156eae759d41e194872560dd4af3f52022-12-21T22:38:02ZengRomanian Foundation for Business IntelligenceSEA: Practical Application of Science2360-25542015-04-01III7 (1/2015)283288seapas:y:2015:i:7:p:283-288THE EVOLUTION OF THE RETURN RATES IN THE CASE OF ROMANIAN MERGED COMPANIESAnca-Simona HROMEI0 Doctoral School of Economics and Business Administration, ‘AlexandruIoanCuza’ University of Iasi, Romania Nowadays, merger transactions are more and more popular, even at the level of Romania. Together with this trend, the need to identify whether these restructuring operations lead to the expected results becomes increasingly evident. This paper aims at analysing the financial performance of 87 Romanian companies from the trading sector, which participated in merger deals during the year 2011. It was considered that the three years’ evolution of the return on equity (ROE) and the return on assets (ROA) rates could offer a complete image of the financial condition of the companies and the way these were influenced because of participating in the merger. These return rates were also compared with the medium levels recorded nationally for the same activity sector. It was found that in terms of both ROE and ROA the absorbing companies were negatively influenced, the medium-term financial performance being affectedbecause of the restructuring, their majority even failing to reach the average sectorial levels. http://seaopenresearch.eu/Journals/articles/SPAS_7_39.pdf MergersFinancial performanceReturn on AssetsReturn on Equity |
| spellingShingle | Anca-Simona HROMEI THE EVOLUTION OF THE RETURN RATES IN THE CASE OF ROMANIAN MERGED COMPANIES SEA: Practical Application of Science Mergers Financial performance Return on Assets Return on Equity |
| title | THE EVOLUTION OF THE RETURN RATES IN THE CASE OF ROMANIAN MERGED COMPANIES |
| title_full | THE EVOLUTION OF THE RETURN RATES IN THE CASE OF ROMANIAN MERGED COMPANIES |
| title_fullStr | THE EVOLUTION OF THE RETURN RATES IN THE CASE OF ROMANIAN MERGED COMPANIES |
| title_full_unstemmed | THE EVOLUTION OF THE RETURN RATES IN THE CASE OF ROMANIAN MERGED COMPANIES |
| title_short | THE EVOLUTION OF THE RETURN RATES IN THE CASE OF ROMANIAN MERGED COMPANIES |
| title_sort | evolution of the return rates in the case of romanian merged companies |
| topic | Mergers Financial performance Return on Assets Return on Equity |
| url |
http://seaopenresearch.eu/Journals/articles/SPAS_7_39.pdf
|
| work_keys_str_mv | AT ancasimonahromei theevolutionofthereturnratesinthecaseofromanianmergedcompanies AT ancasimonahromei evolutionofthereturnratesinthecaseofromanianmergedcompanies |