THE ANALYSIS OF COMPANIES' ACCOUNTING PERFORMANCE RATIOS FROM MERGERS AND ACQUISITION

This study measures the impact of mergers and acquisitions (M&As) on the performance of companies in Romania. To achieve this, we analysed the pre-merger and post-merger financial rates for companies listed on Bucharest Stock Exchange who made at least one merger or acquisition in the period 2006-2011. A set of three rates (ROA, ROE and ROS) was analysed in order to measure the economic performance of companies before and after the M&A announcement was made. Moreover, a logit model was realized where the influence of ROA, ROE and ROS was observed. In many cases, results showed that the performance of companies it could be significantly influenced by the M&A announcement. Moreover, a conclusion about the value of the company can be subtracted by analysing the results obtain in our logit model.