Unveiling The Impact Of International Mergers And Acquisitions On Corporate Profitability
Keywords:
International Mergers, Acquisitions, Corporate Profitability, Cross-Border M&AAbstract
This study explores the effect of international mergers and acquisitions (M&As) on corporate profitability, focusing on both short-term performance shifts and long-term financial outcomes. Using a comprehensive dataset of cross-border M&As from various industries, the research employs quantitative analysis to assess pre- and post-merger financial indicators such as return on assets (ROA), earnings per share (EPS), and net profit margins. The findings reveal that while initial integration phases may cause temporary fluctuations, successful M&As often result in enhanced profitability through synergies, market expansion, and operational efficiency. However, the study also underscores the role of strategic fit, cultural alignment, and regulatory environments as critical determinants of post-merger success. These insights offer valuable implications for corporate decision-makers, investors, and policymakers aiming to evaluate the economic viability of international consolidation strategies.
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Copyright (c) 2024 Prof. Rebecca J. Collins, Dr. Ahmed M. Al-Khatib
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