The Impact of Mergers and Acquisitions on Firm Performance

Abstract

This research examines the influence of corporate mergers and acquisitions on their market worth. M&A are a fast increasing group of organizations, and that employ specialized business methods. At the same time, financial researchers do not fully comprehend the implications of mergers. The study's major goal is to examine the quantitative influence of M&A transactions on firm performance while accounting for the dynamics of the buyer's share quotes. The first chapter presents an introduction of concepts and qualities, market behavioral methods, and market positioning elements for these organizations. The second chapter examines current literature and financial research on mergers and acquisitions, as well as potential approaches for determining the impact of takeovers on the company's performance. The third chapter examines cost estimation methods and analyzes the effectiveness of different approaches. The following illustrates how an event analysis is performed to discover signs of anomalous returns in the M&A announcement date frame. The first sample comprises of many Kazakhstani enterprises. Event windows are projected to reveal abnormal profits from chosen equities that are much greater in absolute size than the absolute magnitude of abnormal earnings for conventional corporations. Furthermore, due to market profile peculiarities, the Kazakhstan market is projected to see greater levels of abnormal returns from acquiring businesses following the announcement of M&A. Following that, conduct a regression analysis to see how much it affects the stock and come up with a hypothesis. In conclusion, the key findings of the analysis are presented