Mergers and Acquisitions-Textile Sector Performance Nexus from Pakistan

Abstract

The operating effectiveness, financial efficiency, and profitability of Pakistan's textile industry as a result of mergers and acquisitions are examined in this study. A number of indicators, including the return on capital employed, fixed asset and profitability ratios, and asset turnover ratios, have been used to evaluate operating performance. Efficiency was determined using data envelopment analysis. Accounting ratios such as net profit margin, return on assets, and return on equity have been used to analyses financial performance. The results show that the constant return to scale model did not support any efficiency gain in the post-merger time frame. The results of the ratio analysis, which was employed as a reliable gauge to assess the financial performance, show that, following the merger, the net profit margin, The return on equity and return on assets ratios declined while the net profit margin grew.