This study examines the merger decisions from a sample of Greek listed companies in the economic crisis period and shortly after its end, by employing various quantitative and qualitative variables of mergers that signalize different levels of risk. The results revealed that the performance subsequent of mergers is not significantly different for the merged companies.
events signalize different performance levels during and after the crisis: mergers that took place when there was no economic crisis are far more profitable and lead to better performance from mergers during the period of economic crisis. Last, regarding the industry relatedness of the merged firms, the industry type and the merger combination of merged companies, there is not any impact from them on the post-merger performance in the examined accounting measures. The study proposes for companies that during crisis periods maybe merger be the only way to survive and provide a stable profitability and accounting performance for shareholders.
Keywords: mergers, accounting measures, financial ratios, performance, economic crisis, Greece.
Grigorieva, 2020; Rodionov and Mikhalchuk, 2020). They are a common occurrence in several industries, geographical areas and time periods, while in some other cases they occur with less frequency and intensity (Mueller, 1980; Jensen and Ruback, 1983; Ramaswamy and Waegelein, 2003; Martynova and Renneboog, 2008; Harrison, 2005).
Their execution is associated with particular risks in relation to how they are implemented, due to the chosen business strategy and the characteristics of the merger by any company that wants to do a merger transaction (Lev and Mandelker, 1972; Amihud and Lev, 1981; Harford et al., 2009; Furfine and Rosen, 2011; Jandik and Lallemand, 2014; Harrison et al., 2014; Alhenawi and Krishnaswami, 2015). Merger decisions during periods of crisis are a special area of research to study, due to the current interest it presents nowadays (Rao-Nicholson and Salaber, 2013; Rao-Nicholson et al., 2016; Pantelidis et al., 2018; Pazarskis et al., 2021; Lois et al., 2021).
The macroeconomic environment affects directly the motives, but mainly plays an important role in the success of mergers, in any economy worldwide (Ibrahim and Raji, 2018). Over time, there have been a few studies that have examined the implementation of mergers in periods of economic crisis, but still there is a certain scarcity of studies. It is therefore of particular interest to implement a study that will investigate mergers during an economic crisis in any geographical area.
As a result, it is evident that examining the effects of the economic crisis on merger decisions in developed countries and EU members in the Eurozone that accept the provision of a ‘support mechanism’ is extremely fascinating.
empirically the implementation of mergers by companies in Greece during the recent economic crisis. or Peer Review Only 2 in this country and after the recession of economic crisis.
More specifically, the business performance of all listed companies in the Athens Stock Exchange that made mergers for a recent period of five years (2014-2018) is investigated by analyzing the accounting measures and compared before and after the merger. In addition, sub-samples are created to examine the particular merger characteristics that are assessed with different aspects of managerial past decisions, and compared with the relevant literature. Also, mergers are evaluated periodically based on the time period in which they took place: during the crisis, after its end or without the existence of the economic crisis.
the conclusions are stated.
Rodionov and Mikhalchuk, 2020). However, it is generally accepted that the ability of a researcher to express an opinion on a subject of study is a direct function of the fact that it is certified by an existing and reliable. Consequently, the methodology followed determines the prestige of his final achievement that he demonstrates methodology (Chatterjee and Meeks, 1996; Pazarskis et al., 2014).
Depending on the size of the sample of companies to be examined, the applied methodologies are divided into case studies and large sample studies that aim to draw a new or more general conclusion about the current business situation.
The methodology of surveys of executives is recommended and applied by examining senior business executives either through interviews or through questionnaires. In this case, the researcher must either be experienced enough to accurately diagnose the type of answers in a structured