TITLE:
Measuring the Effect of Mergers in Greece with the Use of Financial Ratios: A Bootstrapped Approach
AUTHORS:
Michail Pazarskis, Alexandros Alexandrakis, Manthos Vogiatzoglou, George Drogalas
KEYWORDS:
Mergers, Financial Ratios, Bootstrap Techniques, Greek Debt Crisis
JOURNAL NAME:
Theoretical Economics Letters,
Vol.8 No.3,
February
13,
2018
ABSTRACT: In this study a bootstrapped data analysis from
financial statement analysis is proposed to evaluate the short-run operating
gains from mergers of Greek listed firms after the outbreak of the sovereign
debt crisis in Greece. The examined sample consists of thirty Greek firms, in
order to investigate the degree of operating
gains from mergers, during a five-year-period inside the debt crisis in
Greece. The results reveal that a year before and a year after the merger
event, the sample firms were unable to generate short-run operating gains to several financial ratios. Also, we conclude
that the use of the standard, normality based, t-test for inference
between financial ratios should be done with caution.