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Productivity ratios like Total Asset turnover and Fixed assets turnover have significant
impact of M&A in case of cement companies as compared to all the manufacturing
companies, which is due to productivity in case of cement directly depends upon the level
of stock, inventory used by cement companies and level of outstanding (B/R).
Where as in case of Profitability ratios there is no impact of M&A in case of
Manufacturing companies as well as in case of Cement companies both.
As per the results of linear regression, in case of all the three models it is seen that there
is a significant impact on profitability. Cement companies have more impact on
profitability and M&A doesn’t make any difference in profitability. Cement companies are
required to focus on Productivity ratios TAT FAT to create more profitable outcome.
Through the study it can be concluded that – It seems M&A are result of consolidated
phase in cement industry.
Keywords: M&A, Productivity, Profitability, Cement Companies
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