The study by financial ratios of impact of mergers and acquisitions on the financial performance of corporates

The aim of this study is to investigate if merger and acquisition activities would cause any changes on firms? financial performance. In addition, it also is investigated that the level and direction of financial performance of such corporates would be explained in a meaningful way by which of those financial ratios that are selected from various areas like liquidity, efficiency, capital structure, profitability and market performance. Within that context, the merger and acquisition transactions of 17 enterprises from manufacturing industry that are listed in the Istanbul Stock Exchange in the years of 2004 and 2005 were studied. At the end of ratio analysis, it was seen an increase on return on equity parameter which is an indicator of financial performance after the merging operation. Methodologically, the analysis was done by using the method of panel data regression analysis. According to the findings, the acid-test ratio, asset turnover, inventory turnover and debt ratio are important determinants of enterprises? financial performance.