Study for the enterprise value on the mergers and acquisitions

The research on the performance of mergers and acquisitions has focused on stock returns around the merger announcement. Mergers and acquisitions are one of the actively researched topics in finance. This paper examines the financial performance of the firm after mergers and acquisitions, using market model. Our findings show that following mergers and acquisitions, the long run performance of M&A is negative. This decline seems reflected in the failure prediction. At the same time we discover that the value of the enterprise increase significantly after enterprise M&A.