tailieunhanh - The effect of acquisitions on firm performance: Evidence Tehran Stock Exchange

The present study explored the impact of acquisition on performance of Iranian target companies listed in Tehran Stock Exchange. The results of testing research hypotheses showed that performance of target companies did not significantly increase after acquisition, suggesting a decreasing trend in the performance of the target companies after acquisition compared with the period before acquisition. | The effect of acquisitions on firm performance Evidence Tehran Stock Exchange Accounting 2 2016 93 102 Contents lists available at GrowingScience Accounting homepage ac The effect of acquisitions on firm performance Evidence Tehran Stock Exchange Farhad Hanifia and Shahram Vahedib a Faculty Member of Islamic Azad university Tehran Iran b . Student of Financial Management Islamic Azad University UAE Branch CHRONICLE ABSTRACT Article history Nowadays mergers and acquisitions are stated as favorable strategies and as free flows of Received December 5 2015 capital applied by managers for the optimal implementation of resources and assets. Received in revised format Acquisition is associated with a condition where two businesses are placed under one shelter February 16 2016 and are run like members of a group or are merged as a single corporate. In mergers two Accepted March 2 2016 Available online businesses are combined in a new form based on the mutual interests of both parties. The shares March 2 2016 of the two businesses are usually exchanged so that they could take part in the new business as Keywords shareholders. In acquisition a business begins to control another business effectively by Mergers purchasing parts of its ownership. The present study explored the impact of acquisition on Acquisitions performance of Iranian target companies listed in Tehran Stock Exchange. The results of Return on equity testing research hypotheses showed that performance of target companies did not significantly Return on asset increase after acquisition suggesting a decreasing trend in the performance of the target Financial and strategic companies after acquisition compared with the period before acquisition. acquisitions 2016 Growing Science Ltd. All rights reserved. 1. Introduction In economics financial and strategic management mergers and acquisitions are regarded as favorable strategies and as free flows of capital used by managers for .