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The primary goal of this study was to determine the impact of mergers and acquisitions (M&A) and the environmental, social, and governance (ESG) sustainability scores of companies. In this regard, efforts to measure and analyze the evolution of a company’s performance, taking into account financial and non-financial measures using a score function, are adapted to the pharmaceutical sector. The sample consisted of 100 leading pharmaceutical companies, ranked by stock market capitalization, who registered 30% (n = 492) of the total M&A transactions over the study period (2010–2020). There was a direct and positive link between the M&A process and the evolution of company performance. The ESG score, as an indicator for measuring sustainability, has a positive and direct impact on company performance, indicating that a high ESG score determines an increase in company performance. A similar impact is identified for companies involved in M&A processes, meaning that companies in the pharmaceutical sector tend to register a performance improvement.
Diana Mihaiu; Radu-Alexandru Șerban; Alin Opreana; Mihai Țichindelean; Vasile Brătian; Liliana Barbu. The Impact of Mergers and Acquisitions and Sustainability on Company Performance in the Pharmaceutical Sector. Sustainability 2021, 13, 6525 .
AMA StyleDiana Mihaiu, Radu-Alexandru Șerban, Alin Opreana, Mihai Țichindelean, Vasile Brătian, Liliana Barbu. The Impact of Mergers and Acquisitions and Sustainability on Company Performance in the Pharmaceutical Sector. Sustainability. 2021; 13 (12):6525.
Chicago/Turabian StyleDiana Mihaiu; Radu-Alexandru Șerban; Alin Opreana; Mihai Țichindelean; Vasile Brătian; Liliana Barbu. 2021. "The Impact of Mergers and Acquisitions and Sustainability on Company Performance in the Pharmaceutical Sector." Sustainability 13, no. 12: 6525.
Mergers and acquisitions (M&A) market is a barometer of the attractiveness of the national economy for the foreign capital but also for the local capital to develop its businesses. In recent years, worldwide, foreign investments have resulted mainly in M&A transactions than in green field investment. The objective of this article is to analyze the financial performance of companies in Romania which went through a M&A transaction, before and after this transaction. The purpose of this research is to determine if the financial performance of these companies has improved after a M&A transaction. The financial performance of M&A transactions in Romania will be analyzed, during the 2010–2013 period, taking into consideration a sample of ten transactions from several industries. The objective of the study is to analyze the impact of M&A transaction on the financial performance of the companies involved. We consider that a M&A transaction is efficient in financial terms if it generates growth in profit and if it generates an increase in value for shareholders, compared to previous values before the transaction. Financial performance measurement method used in this study is accounting-based measure, using financial indicators analysis. Through this method, it will be established: the impact of M&A transaction on the profitability of companies and the impact of M&A transaction on the value created for shareholders.
Diana Marieta Mihaiu. Financial Synergies of Mergers and Acquisitions: Between Intentions and Achievements. Sustainable Transport Development, Innovation and Technology 2018, 237 -252.
AMA StyleDiana Marieta Mihaiu. Financial Synergies of Mergers and Acquisitions: Between Intentions and Achievements. Sustainable Transport Development, Innovation and Technology. 2018; ():237-252.
Chicago/Turabian StyleDiana Marieta Mihaiu. 2018. "Financial Synergies of Mergers and Acquisitions: Between Intentions and Achievements." Sustainable Transport Development, Innovation and Technology , no. : 237-252.