The impact of merger policy on the financial performance of Jordanian companies from the managerial employees' perspective : a field study

Abstract EN

This study aimed at identifying the impact of merger policy on the financial performance of Jordanian companies from the perspective of the companies' employees.

The study also aimed at identifying the outcomes of mergers with regard to a company's financial performance.

The study population consisted of 49 merged companies, which had numbered 103 companies before merging.

The researcher considered all 49 merged companies' employees as the study population, accounting for 5,000 employees.

From the study population the researcher took a random sample of 10 %, which gave a sample of 500 employees working in the merged companies.

In order to achieve the study goals and objectives the researcher developed a questionnaire which consisted of 41 items.

The researcher also examined the questionnaire's reliability and validity before conducting the study.

Based on the study sample, the study reached the following conclusions : 1.

There is a significant impact of merger policy implementation on the liquidity of Jordanian companies.

2.

There is a significant impact of merger policy implementation on the profitability of Jordanian companies.

3.

There is a significant impact of merger policy implementation on the volume of sales of Jordanian companies.

4.

There is a significant impact of merger policy implementation on the stock revenues of Jordanian companies.

5.

There is a significant impact of merger policy implementation on the dependency on internal funding of Jordanian companies.

According to the study conclusions, the researcher recommends that company mergers should be encouraged, since they increase the financial liquidity which enhances a company's position and improves its profitability in local or international markets.

The benefits of merger policy should be explained and publicized for companies to influence the view of the merger policy.

Similar studies should be conducted in future to identify the effect of mergers on other variables, such as stock prices.

The impact of merger policy on the financial performance of Jordanian companies from the managerial employees' perspective : a field study