International Journal of Banking, Risk and Insurance

11 (2) 2023, 09-16 Submitted: 30 November, 2022

http://publishingindia.com/ijbri/ Accepted: 25 January, 2023

Study on Financial Performance of Indian

Pharmaceutical Industry:
Pre and Post Merger Period
Dhanalakshmi C.*

Abstract the Indian pharmaceutical market increased by 17.7%

annually, up from 13.7% in July 2020. The size of India’s
In the global pharmaceuticals sector, India is a pharmaceutical market stood at USD 42 billion in 2021.
significant and rising player. In today’s globalized Globally, India is the largest provider of generic drugs. The
economy, the main objective of every firm is to make country is the third-largest producer of pharmaceuticals in
profits and enhance the shareholders’ wealth. In the the world by volume and the 14th-largest by value.
global market, a number of companies among Indian
pharmaceuticals have entered into Merger and One of the main elements of contemporary corporate
Acquisition agreements. Mergers and acquisitions restructuring is the boom in mergers and acquisitions.
(M&As) are one of the mechanisms by which firms Mergers and acquisitions (M&As) are one of the
gain access to new resources and, via resource mechanisms by which firms gain access to new resources
redeployment, increase revenues and reduction in and, via resource redeployment, increase revenues
costs. The objective of the study is to evaluate the and reduction in costs. This major proposition for the
Financial Performance of select pharmaceutical M&As increased activity is mainly imposed by intense
companies in the pre and post-merger period. For the
competition, evolving technology, low-interest rates,
present study, eight pharmaceutical companies listed
changing regulations in the financial markets, and many
under BSE involved in M&A activities in India after
other factors.
the recession period, i.e. after 2007, were chosen.
The analysis is based on the various ratios which are In this development, here an attempt has been made to
compared between pre and post-event periods. Other
examine the phenomenon of M&A activities in selected
statistical tools- Mean, Standard Deviation, Co-efficient
pharmaceutical companies in India through empirically
of Variation and Paired ‘t’ test have been used in this
analysing the performance of 8 pharmaceutical companies
research.
listed at the Bombay Stock Exchange (BSE) that executed
Keywords: Pharmaceuticals, Acquisition Agreements, acquisitions during the period from 2003-04 to 2015-
Mergers and Acquisitions, Recession 16, by comparing various financial ratios pertaining to
solvency, activity and profitability between pre and post-
event periods.

Introduction Review of Literature

In the global pharmaceuticals sector, India is a significant Oloye and Osuma (2015) explored that to examine the
and rising player. India is the world’s largest supplier impacts of mergers and acquisition of commercial bank’s
of generic medications, accounting for 20% of the performance in Nigeria as the main objective. The research
worldwide supply by volume and supplying about 60% used shareholders fund and profit after tax of the selected
of the global vaccination demand. In August 2021, banks as proxies to measure the financial efficiency
*
Associate Professor, Department of Commerce Industry Integrated, Sri Krishna Arts and Science College, Coimbatore, Tamil
Nadu, India. Email: [email protected]
10 International Journal of Banking, Risk and Insurance Volume 11 Issue 2 September 2023

of the banks in both pre and post consolidation eras in M&A deals should have been exhibited after 2007, and
Nigeria. According to Neha Duggal, (2015) M&A were Acquirer should have had at least five financial years in
considered as a significant tool for corporate restructuring both pre and post-merger periods. Out of 61 M&A deals
and value creation in the present scenario. Long (2015) in India, 8 M&A only occurred after 2007 and hence
the study recommended that the banks should come up considered for the study. The annual reports of the select
with more aggressive strategies that would improve their eight companies were collected from the CMIE data-base
performance and financial efficiency in order to gain the and the respective company websites. The period of study
most from post-merger and acquisition. Furthermore, comprising five financial years before-merger and after-
the results indicated that firm size and growth had a merger for the select eight companies ranged between
significantly positive relationship with firm profitability, 2003-04 and 2015-16.
while debt capital decreases firm profitability. Bassi and
Gupta’s (2015) study was based on secondary data from Tools of Analysis
five banks. The study concluded that investors were getting
● Solvency ratios and Profitability ratios were com-
abnormal returns due to the announcement of the merger
puted and compared between pre and post-merger
and acquisition. Moreover, the event positively impacted
periods.
the overall financial valuation of the company. Rooplata
and Sathya (2015) noted in their study to find out whether ● The statistical tools, namely Mean, Standard
the merger and acquisition deal between the two banks Deviation, Co-efficient of Variation and Paired ‘t’ test,
(Centurion Bank and Bank of Punjab and HDFC) was were employed in this research.
successful or not. This merger showed good results on their
balance sheet and improved their profitability, solvency, Ratio Analysis
leverage ratios etc. Tang and Alger (2015) The results
showed that using return on assets, financial performance The list of financial ratios measuring various aspects of
significantly decreased after the merger. However, found the financial performance of the manufacturing companies
no significant change in the abnormal return on an asset involved in acquisition activities selected for the present
before and after the merger activity. This may be indicated study is given below:
that the decrease in the return on assets was caused by
Solvency Ratios
market movement and not by the merger activity. Chaudary
and Sarwar (2015) determined the shareholders’ wealth of ● Short term: Current Ratio
the acquirer U. S. pharmaceutical companies after M&A. ● Long term: Debt-Equity Ratio
Sahu and Agarwal (2015) observed that M&A were
Profitability Ratios
common strategies of firms to increase the performance
and also brought to the fore the factors affecting M&A ● Net Profit Ratio
activities in the Indian pharmaceutical sector. The details of the ratio analysis are discussed in the
following table with the appropriate statistical tools.
Objective of the Study
● To evaluate the Financial Performance of the select Solvency Ratios
Indian Pharmaceutical Companies in the pre and
post-merger period. Short-Term Solvency Ratios

Methodology Current Ratio

The present study is based on eight pharmaceutical The current ratio may be defined as the relationship
companies listed under BSE which involved in M&A between current assets and current liabilities. This ratio,
activities in India after the recession period, i.e. after also known as the working capital ratio, is a measure of
2007. The basic criterion of this research is that the general liquidity and is most widely used to make the
 Study on Financial Performance of Indian Pharmaceutical Industry: Pre and Post Merger Period 11

analysis of a short-term financial position of concern. The current liabilities include outstanding expenses, sundry
standard norm is 2:1. creditors, short-term advances, income-tax payable,
Current Assets dividends payable, interest accrued but not due on loans
Current Ratio = and provisions.
Current Liabilities
H0: There is no significant difference in current
Current assets include cash in hand, cash at the bank,
ratio between before and after merger period of the
marketable securities, inventories, sundry debtors, etc.
selected companies.

Table 1: Current Ratio

(In Times)
SMS Strides Sequent Sri Krishna Makers Abbott Aarti IPCA
Period Pharmaceuticals Shasun Ltd. Scientific Pharmaceuticals Labs India Drugs Labs. Ltd.
Ltd. Ltd. Ltd. Ltd. Ltd. Ltd.
BeforeMerger 1.803 4.096 7.237 1.411 3.795 3.124 3.440 3.402

1.708 3.834 2.913 1.436 4.530 3.449 3.782 4.380

2.130 2.367 3.859 1.285 3.598 3.477 2.925 4.394

3.428 2.160 2.544 1.474 4.213 3.705 2.753 3.774

3.079 2.532 3.978 1.470 5.322 5.854 3.133 4.904

Mean 2.430 2.998 4.106 1.415 4.292 3.922 3.207 4.171

SD 0.778 0.897 1.854 0.077 0.681 1.100 0.411 0.587

CV (%) 32.017 29.937 45.140 5.452 15.858 28.042 12.820 14.078

After Merger 2.591 3.146 2.705 1.470 3.767 4.113 2.444 5.039

2.232 8.172 1.74 1.778 2.326 4.231 2.670 3.561

1.989 1.811 1.615 2.063 2.225 5.321 2.518 4.109

2.076 2.916 1.401 2.161 2.179 5.241 2.352 3.748

1.924 3.341 1.591 2.161 2.755 4.848 2.648 3.696

Mean 2.162 3.877 1.810 1.927 2.650 4.751 2.526 4.031

SD 0.266 2.473 0.514 0.300 0.664 0.559 0.135 0.599

CV (%) 12.303 63.775 28.416 15.551 25.071 11.773 5.331 14.867

Paired ‘t’ 0.620 0.943 3.724 3.773 3.669 1.671 4.405 0.286

‘p’ Value 0.569NS 0.399 NS 0.020** 0.020** 0.021** 0.170 NS 0.012** 0.789 NS

Source: Annual Reports of the respected companies.

It is highlighted from Table 1 that the mean value of Pharmaceuticals, followed by 29.937 per cent in Strides
the current ratio before the merger period endowed by Shasun, 45.140 per cent in sequent Scientific limited,
2.430 in SMS Pharmaceuticals, followed by 2.998 in 5.452 per cent in Sri Krisna Pharmaceuticals limited,
Strides Shasun, 4.106 in Sequent Scientific Limited, 15.858 per cent in Makers labs, 28.042 per cent in Abbott
1.415 in Sri Krishna Pharmaceuticals Limited, 4.292 in India, 12.820 per cent in Aarti Drugs and 14.078 per cent
Makers labs, 3.922 in Abbott India, 3.207 in Aarti Drugs in IPCA labs. The table shows that the current ratio in Sri
and 4.171 in IPCA Labs. The coefficient of variation of Krishna Pharmaceuticals Limited is constant, and on the
the current ratio is endowed by 32.017 per cent in SMS other hand, it is fickle in Sequent Scientific limited.
12 International Journal of Banking, Risk and Insurance Volume 11 Issue 2 September 2023

It is noted from the mean value of the current ratio in the before-merger period. On the other hand, Abbott
in after merger period endowed by 2.162 in SMS India has the highest mean value, and Sequent Scientific
Pharmaceuticals, followed by 3.877 in Strides Shasun, Limited has the low volatile in the current ratio, and the
1.810 in Sequent Scientific Limited, 1.927 in Sri Krishna coefficient variation of Aarti Drugs Limited is constant,
Pharmaceuticals Limited, 2.650 in Makers labs, 4.751 and on the other hand, it is fickle in Strides Shasun limited
in Abbott India, 2.526 in Aarti Drugs and 4.031 in IPCA in the after merger period. Further, there is a significant
Labs. The coefficient of variation of the current ratio is difference between the before and after merger period
endowed by 12.303 per cent in SMS Pharmaceuticals, of the companies Sequent Scientific Ltd., Sri Krishna
followed by 63.775 per cent in Strides Shasun, 28.416 Pharmaceuticals Ltd., Makers Labs Ltd. and Aarti Drugs
per cent in sequent Scientific limited, 15.551 per cent in Ltd. in its current ratio.
Sri Krishna Pharmaceuticals Limited, 25.071 per cent in
Makers labs, 11.773 per cent in Abbott India, 5.331 per Long-Term Solvency Ratios
cent in Aarti Drugs and 14.867 per cent in IPCA labs. The
table shows that the current ratio in Aarti Drugs Limited
Debt Equity Ratio
is constant, and on the other hand, it is fickle in Strides
Shasun limited.
Debt equity ratio shows the relative claims of creditors
The result of paired t-test shows the null hypothesis of (Outsiders) and owners (Interests) against the assets of
the companies SMS Pharmaceuticals Ltd., Strides Shasun the firm. Thus this ratio indicates the relative proportions
Ltd., Abbott India Ltd. and IPCA Labs. Ltd. are accepted. of debt and equity in financing the firm‟s assets. It can
On the other hand, the null hypothesis of the companies be calculated by dividing outsider funds (Debt) by
Sequent Scientific Ltd., Sri Krishna Pharmaceuticals Ltd., shareholder funds (Equity)
Makers Labs Ltd. and Aarti Drugs Ltd. is rejected. Hence, Outsider Funds (Total Debts)
it is noted that there is no significant difference between Debt Equity Ratio =
Shareholder Funds or Equity
the before and after merger period of the companies SMS
Pharmaceuticals Ltd., Strides Shasun Ltd., Abbott India The outsider fund includes long-term debts as well
Ltd. and IPCA Labs. Ltd., and on the other hand, there as current liabilities. The shareholder funds include
is a significant difference between the before and after equity share capital, preference share capital, reserves
merger period of the companies Sequent Scientific Ltd., and surplus, including accumulated profits. However,
Sri Krishna Pharmaceuticals Ltd., Makers Labs Ltd. and fictitious assets like accumulated deferred expenses
Aarti Drugs Ltd. in its current ratio. etc. should be deducted from the total of these items to
shareholder funds. The shareholder funds so calculated
It is concluded that Makers Labs has the highest mean are known as the net worth of the business.
value, and Sri Krishna Pharmaceuticals Limited has less
consistency in the current ratio. The coefficient variation H0: There is no significant difference in debt equity
of Sri Krishna Pharmaceuticals Limited is constant, and ratio between before and after the merger period of the
on the other hand, it is fickle in Sequent Scientific limited selected companies.
Table 2: Debt Equity Ratio
(In Times)
SMS Strides Sequent Sri Krishna Makers Abbott Aarti IPCA
Period Pharmaceuticals Shasun Ltd. Scientific Ltd. Pharmaceuticals Labs India Drugs Labs. Ltd.
Ltd. Ltd. Ltd. Ltd. Ltd.

Before Merger 12.624 0.889 0.000 1.178 0.679 0.008 2.086 0.510
15.322 0.943 0.000 0.889 0.738 0.006 1.956 0.492
15.954 0.916 0.135 1.285 0.459 0.004 1.881 0.581
6.218 4.347 0.469 1.192 0.633 0.003 1.485 0.705
9.173 2.896 0.824 0.954 0.820 0.000 1.259 0.519
 Study on Financial Performance of Indian Pharmaceutical Industry: Pre and Post Merger Period 13

(In Times)
SMS Strides Sequent Sri Krishna Makers Abbott Aarti IPCA
Period Pharmaceuticals Shasun Ltd. Scientific Ltd. Pharmaceuticals Labs India Drugs Labs. Ltd.
Ltd. Ltd. Ltd. Ltd. Ltd.
Mean 11.858 1.998 0.286 1.100 0.666 0.004 1.734 0.561
SD 4.135 1.568 0.357 0.169 0.135 0.003 0.347 0.087
CV (%) 34.867 78.478 124.951 15.381 20.276 70.066 20.037 15.504
13.697 1.328 1.180 0.954 0.537 0.000 1.416 0.503
16.298 0.884 1.396 1.295 0.404 0.000 1.544 0.476
After Merger 16.589 0.658 1.753 1.303 0.197 0.000 1.424 0.393
17.919 0.463 2.423 1.198 0.093 0.000 1.364 0.300
13.092 0.290 6.961 1.198 0.032 0.000 1.326 0.416
Mean 15.519 0.724 2.742 1.189 0.253 0.000 1.415 0.418
SD 2.045 0.404 2.405 0.141 0.213 0.000 0.083 0.079
CV (%) 13.176 55.715 87.687 11.885 84.162 - 5.833 18.977
Paired ‘t’ 1.747 1.521 2.645 0.831 3.629 3.096 2.447 1.967
NS NS NS NS NS
‘p’ Value 0.155 0.203 0.057 0.453 0.022** 0.036** 0.071 0.121 NS

Source: Annual Reports of the respected companies. Note: *-Sig. at 1% level; **-Sig. at 5% level; NS-Not Significant.

It is highlighted from Table 2 that the mean value of the Pharmaceuticals Limited, 84.162 per cent in Makers labs,
debt-equity ratio before the merger period endowed by 0.000 per cent in Abbott India, 5.833 per cent in Aarti
11.858 in SMS Pharmaceuticals, followed by 1.998 in Drugs limited and 18.977 per cent in IPCA labs limited.
Strides Shasun, 0.286 in Sequent Scientific Limited, 1.100 The table shows that the debt-equity ratio in Abbott India
in Sri Krishna Pharmaceuticals Limited, 0.666 in Makers Limited is constant, and on the other hand, it is fickle in
labs, 0.004 in Abbott India, 1.734 in Aarti Drugs and SMS Pharmaceuticals limited.
0.561 in IPCA Labs limited. The coefficient of variation
The result of paired t-test shows the null hypothesis of
of debt-equity ratio endowed by 34.867 per cent in SMS
the companies SMS Pharmaceuticals Ltd., Strides Shasun
Pharmaceuticals, followed by 78.478 per cent in Strides
Ltd., Sequent Scientific Ltd., Sri Krishna Pharmaceuticals
Shasun limited, 124.951 per cent in sequent Scientific
Ltd., Aarti Drugs Ltd, and IPCA Labs. Ltd. are accepted.
limited, 15.381 per cent in Sri Krishna Pharmaceuticals
On the other hand, the null hypothesis of the companies
Limited, 20.276 per cent in Makers labs limited, 70.066 Makers Labs Ltd. and Abbott India Ltd. are rejected.
per cent in Abbott India Limited, 20.037 per cent in Aarti Hence, it is noted that there is no significant difference
Drugs limited and 15.504 per cent in IPCA labs limited. between the before and after the merger period of the
The table shows that the debt-equity ratio in Sri Krishna companies SMS Pharmaceuticals Ltd., Strides Shasun Ltd.,
Pharmaceuticals Limited is constant, and on the other and Sequent Scientific Ltd., Sri Krishna Pharmaceuticals
hand, it is erratic in Sequent Scientific limited. Ltd., Aarti Drugs Ltd., and IPCA Labs. Ltd., and on the
other hand, there is a significant difference between the
It is evaluated from the mean value of debt equity ratio
before and after merger periods of the companies Makers
after the merger period endowed by 15.519 in SMS
Labs Ltd. and Abbott India Ltd. in its debt-equity ratio.
Pharmaceuticals Limited, followed by 0.724 in Strides
Shasun limited, 2.742 in Sequent Scientific Limited, It is found that SMS Pharmaceuticals Limited has the
1.189 in Sri Krishna Pharmaceuticals Limited, 0.253 in highest mean value,Abbott India Limited has less consistent
Makers labs, 0.000 in Abbott India, 1.415 in Aarti Drugs in the debt-equity ratio, and the coefficient variation of the
limited and 0.418 in IPCA Labs limited. The coefficient debt-equity ratio in Sri Krishna Pharmaceuticals Limited
of variation of the debt-equity ratio endowed by 13.176 is constant, and on the other hand, it is erratic in Sequent
per cent in SMS Pharmaceuticals, followed by 55.715 Scientific limited in before merger period. On the other
per cent in Strides Shasun limited 87.687 per cent in hand, SMS Pharmaceuticals Limited has the highest mean
Sequent Scientific limited, 11.885 per cent in Sri Krishna value, and Abbott India limited has the low volatility in
14 International Journal of Banking, Risk and Insurance Volume 11 Issue 2 September 2023

the debt-equity ratio. The coefficient variation of Abbott business successfully from the owner’s point of view. It
India Limited is constant. On the other hand, it is fickle indicates the return on shareholders’ investments. The
in SMS Pharmaceuticals limited after the merger period higher the ratio better is the operational efficiency of
is moderate during the study period. Further, there is a the business concern. Net profit includes non-operating
significant difference between the before and after merger incomes and profits. Similarly, net profit is the profit after
periods of the companies Makers Labs Ltd. and Abbott reducing non-operating expenses; provision for tax is also
India Ltd. in its debt-equity ratio. subtracted while determining net profit.
Net Profit after Tax
Profitability Ratios Net Profit Ratio = *100
Net Sales
Net Profit Ratio
H0: There is no significant difference in net profit ratio
between before and after merger period of the selected
This ratio is also called the net profit to sales ratio. It is
companies.
a measure of management’s efficiency in operating the

Table 3: Net Profit Ratio

(In Percentage)
SMS Strides Sequent Sri Krishna Makers Abbott Aarti IPCA
Period Pharmaceuticals Shasun Ltd. Scientific Pharmaceuticals Labs Ltd. India Ltd. Drugs Labs.
Ltd. Ltd. Ltd. Ltd. Ltd.
Before Merger 6.24 9.81 12.05 2.28 0.65 11.65 5.20 8.31
7.58 14.49 12.49 2.91 1.86 11.21 4.62 12.95
6.92 7.95 20.75 1.69 -0.42 10.99 4.21 13.18
12.15 -27.90 3.01 5.48 5.43 9.04 4.00 7.05
11.46 1.03 3.32 6.59 5.81 9.76 5.67 13.23
Mean 8.869 1.077 10.324 3.790 2.667 10.530 4.739 10.946
SD 2.732 16.908 7.397 2.133 2.818 1.092 0.694 3.014
CV (%) 30.808 1569.90 71.647 56.275 105.660 10.367 14.654 27.538
2.52 13.73 8.44 6.59 6.40 5.88 4.53 13.58
1.08 14.60 5.73 2.11 -0.91 8.08 3.41 12.03
After Merger 3.71 15.73 0.44 5.55 3.96 8.76 5.48 11.93
0.53 7.86 -23.12 5.17 0.88 8.72 6.35 14.76
10.45 330.21 -33.56 5.17 3.62 10.00 7.14 8.30
Mean 3.658 76.427 -8.412 4.918 2.790 8.287 5.380 12.118
SD 3.995 141.901 18.781 1.674 2.850 1.517 1.472 2.434
CV (%) 109.214 185.67 -223.257 34.042 102.142 18.306 27.353 20.088
Paired ‘t’Test 2.856 1.182 3.043 0.923 0.060 2.087 0.949 0.508
‘p’ Value 0.046** 0.303NS 0.038** 0.408 NS 0.955 NS 0.105 NS 0.396 NS 0.638 NS
Source: Annual Reports of the respected companies. Note: *-Sig. at 1% level; **-Sig. at 5% level; NS-Not Significant.

It is surmised from Table 3 that the mean value of the net Shasun limited, 10.324 in Sequent Scientific Limited,
profit ratio before the merger period endowed by 8.869 3.790 in Sri Krishna Pharmaceuticals Limited, 2.667 in
in SMS Pharmaceuticals, followed by 1.077 in Strides Makers labs, 10.530 in Abbott India, 4.739 in Aarti Drugs
 Study on Financial Performance of Indian Pharmaceutical Industry: Pre and Post Merger Period 15

limited and 10.946 in IPCA Labs limited. The coefficient period. On the other hand, Strides Shasun Limited has the
of variation of net profit ratio endowed by 30.808 per cent highest mean value, and Sequent Scientific Limited has
in SMS Pharmaceuticals Limited, followed by 1569.90 the low volatility in the net profit ratio. The coefficient
per cent in Strides Shasun limited, 71.647 per cent in variation of Sequent Scientific Limited is constant, and
Sequent Scientific limited, 56.275 per cent in Sri Krishna on the other hand, it is fickle in Strides Shasun after the
Pharmaceuticals Limited, 105.660 per cent in Makers merger period during the study period. Further, there is a
labs limited, 10.367 per cent in Abbott India Limited, significant difference between the before and after merger
14.654 per cent in Aarti Drugs limited and 27.538 per cent period of the companies SMS Pharmaceuticals Ltd. and
in IPCA labs limited. The table shows that the net profit Sequent Scientific Ltd. in its net profit ratio.
ratio in Abbott India is constant, and on the other hand, it
is fickle in Strides Shasun limited. Conclusion
It is found from the mean value of net profit ratio after the
From the analysis, it is clear that in the post-acquisition
merger period endowed by 3.658 in SMS Pharmaceuticals
period, the increase in borrowed funds and improvement
Limited, followed by 76.427 in Strides Shasun limited,
in the liquidity position of pharmaceutical companies
8.412 in Sequent Scientific Limited, 4.918 in Sri Krishna
indicate that long-term borrowings are deployed for
Pharmaceuticals Limited, 2.790 in Makers labs, 8.287 in
working capital purposes. So, the managements have to
Abbott India, 5.380 in Aarti Drugs limited and 12.118
find ways to use resources properly so as to enhance them
in IPCA Labs limited. The coefficient of variation of
efficiently in the post-acquisition period. The debt-equity
net profit ratio endowed by 109.214 per cent in SMS
ratio of SMS Pharmaceuticals Ltd., Sequent Scientific
Pharmaceuticals, followed by 185.67 per cent in Strides
Ltd. and Sri Krishna Pharmaceuticals Ltd. is higher in the
Shasun limited -223.257 per cent in Sequent Scientific
post-merger years when compared with the pre-merger
limited, 34.042 per cent in Sri Krishna Pharmaceuticals
period. So, it is recommended to these companies that
Limited, 102.142 per cent in Makers labs, 18.306 per
they have to concentrate on reducing debt in proportion to
cent in Abbott India, 27.353 per cent in Aarti Drugs
equity. Shares may be issued to increase the share capital
limited and 20.088 per cent in IPCA Labs limited. The
and also maintain the leverage position of the companies.
table shows that the net profit ratio in Sequent Scientific
In the post-acquisition period, the improved profitability
Limited is constant, and on the other hand, it is fickle in
position indicates that the managements have to come
Strides Shasun.
up with very fast to initiative some solid measures to
The result of paired t-test shows that the null hypothesis improve efficiency and exploit the available opportunities
of the selected companies, except SMS Pharmaceuticals of the economy of scale, which will definitely help the
Ltd. and Sequent Scientific Ltd., are accepted. On the company to retain and uplift the profitability of the
other hand, the null hypothesis of the companies SMS acquiring companies and enhance the value further from
Pharmaceuticals Ltd. and Sequent Scientific Ltd. are the perception of the shareholders.
rejected. Hence, it is evaluated that there is no significant
difference between the before and after merger period of References
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