Factors Influencing the Performance of Acquisition Companies

Subject Areas : Journal of Investment Knowledge

Mohammad Reza Eghbal ¹ , Seyed Ali Nabavi Chashmi ² , Naser Yadollahzadeh Tabari ³

1 - Ph.D. Student of Financial Engineering, Babol Branch, Islamic Azad University, Babol, Iran
2 - Department of Finance, Babol Branch, Islamic Azad University, Babol, Iran.
3 - Department of Finance, Babol Branch, Islamic Azad University, Babol, Iran.

Received: 2020-01-24 Accepted : 2020-11-04 Published : 2023-03-21

Keywords: Rate of Return on Assets, Rate of Return on Equity, Acquisition,

Abstract :

Moving toward globalization is one of the most contemplative and challenging issues of today. One of the best strategies for the growth and development of companies that operate in a changing environment and always be ready to respond is acquisition. The purpose of this study is to investigate the factors affecting the performance of the acquirer companies. The study population is all companies listed in the Tehran Stock Exchange that were in the acquisition process from 2013 to 2016, and 48 of them were identified as acquisition companies and the statistical sample of the present study. The results indicated that the acquisition variable, intangible assets, and size of companies were positively correlated with ROA. In addition, the acquisition and size variables have a positive relationship with corporate performance with respect to ROE.

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