Tag Archives: Stock Return

The Influence of Mergers and Acquisitions on Financial Performance and Stock Return of Indonesian Banks (Published)

Business environment has changed rapidly due to dynamic changes in the current global era. Merger and acquisition activities are not a new phenomenon in the business world, and it’s an important business phenomenon. One of the changes that can be seen from the merger and acquisition activities are company’s financial performance and stock return. The purpose of this study is to analyze banks financial performance with financial ratios before and after mergers and acquisitions, analyze the effect of mergers and acquisitions on bank financial performance and analyze the factors that influence the success of mergers and acquisitions. This research used Kolmogorov-Smirnov normality test and Wilcoxon test and logistic regression. The results showed that ROA, OER, NPL, NIM and LDR improved after mergers and acquisitions. Mergers and acquisitions also affect the differences in ROA, OER, NPL, NIM, and LDR before and after mergers and acquisitions. Factors that affect the success of mergers and acquisitions are foreign ownership, acquisition percentage and firm size when viewed the success of merger and acquisition from bank’s ability to increase its net profit. In addition, when viewed from the stock returns obtained factors that affect the success of a merger and acquisition are foreign ownership, the percentage of acquisitions and industry relatedness.

Keywords: Financial Performance, Merger and Acquisition., Stock Return

The effect of Risk and Stock Market Volatility on stock return: a study of listed Pharmaceutical Companies in Pakistan (KSE). (Review Completed - Accepted)

This study explores the relationship between risk and return; the quantitative analysis has been carried out on all the Pharmaceutical companies listed on KSE. The research has been conducted on the basis of secondary data. The daily data has been used for analysis of last 10 years. Dependent variable is return, independent variables are market volatility which is measured by beta and the other is risk which is measured by Standard deviation. More than one thousand observations have been taken and analyzed. Results show that there is positive relationship between return and market volatility which means when volatility is higher than the return will also be higher. When Market risk premium is positive then company’s stock return will also be positive and when market risk premium is negative then return of company’s stock will also be lower. Results also show that there is positive relationship between risk and excess return

Keywords: Market Volatility, Pharmaceutical Companies (KSE), Risk, Stock Return