Post-Merger and Acquisition Consequences on Stock Prices of Textile Firms in Pakistan

Abstract

Due to globalization and increased competition in world market firms have motive to expand their size and market share, for this purpose they go through the Merger and Acquisition, and this practices effect the size, market share, profitability, growth, stock prices and etc. This research was conducted to analyze the effect of merger and acquisition on the stock prices of merged firms in Pakistan. The aim of this study was to find out the significant and insignificant effect of merger and acquisition on stock prices of merged firms. For this purpose different textile firms of Pakistan were selected to examine and analysis through Independent Samples Test. It was found after Independent Samples Test analysis of the Historical data of stock prices of merged firms in textile sector of Pakistan that there is a significant impact of merger and acquisition on the stock prices of merged firms. The study was only about the Textile sector of Pakistan that merged from 2001 to 2012.