A comparative study of the financial performance among merger and acquisition (case study for the Malaysian companies) / Ku Mohd Fairus Ku Ahmad

Today, growth in economy performance is strongly correlated with merger and acquisition. Hence, companies are aiming for merger and acquisition because the high value creates from merger lead to better position for company to compete in the competitive market. The result is high increase in financial strength. Therefore, a firm cannot create valuable synergy without creating proper merger and acquisition with right a firm.
Nowadays, all companies have found themselves facing more aggressive competition, uncertainty and unlimited opportunities. Most of the large company such as Sime Darby Bhd, Cimb Bank Bhd, and Yen Holdings Berhad and so like now open their wing which is “value creation theories,” that offers increased performance motive to target company
This paper explored the benefit gained from company’s performance after merger and acquisition in Malaysia. The study focused on three factors such as liquidity, leverage and profitability as independent variables that are believed can be used to analyze the data. Annual report of a company before and after merger were collected and analyzed.
The result that used to analyses performance of the company that obtained from the annual report can be used to describe about the effect of the companies performance before and after the merger.