Mergers and Acquisitions and Corporate Performance in Japan
ICFAI Journal of Mergers & Acquisitions, Vol. 4, No. 3, pp. 36-45, September 2007
Posted: 4 Dec 2007 Last revised: 24 Apr 2017
Abstract
This paper investigates how mergers and acquisitions affect corporate performance for three years after their implementation. The corporate performance of 162 mergers and acquisitions that took place in Japan from 2001 to 2003, is analyzed by using Wilcoxon singed-rank tests. We find that overall effects of mergers and acquisitions on corporate performance are statistically insignificant, compared to the corporate performance of other companies within the same industry with similar pre-acquisition performance. Regression analyses show that complete acquisitions, smaller size, and restructuring efforts may improve post-acquisition performance of acquiring companies.
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