TAF PUBLISHING

Mergers and acquisitions are a global strategy that is followed by the different companies to fulfill the needs of the business environment. This strategy important in Pakistan in the financial and non-financial sectors. The main aim of this research is to evaluate the effect of Mergers and Acquisitions (M&A) on the financial performance of the non-financial and financial sectors in Pakistan. In this research paper, we use 10 financial ratios such as Return On Equity (ROE), Return On Assets (ROA), Net Profit Margin (NPM), Total asset turn over, Equity Multiplier (EM), Dividend Per Share (DPS), Earning Per Share (EPS), Debt Ratio, Debt to Equity Ratio (D/E Ratio) and Capital Ratio to measure the financial performance. We use a t-test for before and after -merger comparisons. We get financial data of 18 companies listed in the Pakistan Stock Exchange (PSX). Finding shows that due to M&A, there is an insignificant difference in the financial performance of the selected firms.