Management Performance Audit in Mergers and Acquisitions

• Published in: Procedia economics and finance 2012, Vol.3, p.309-314
• Main Authors: Dobre, Florin, Brad, Laura, Ciobanu, Radu, Turlea, Eugeniu, Caloian, Florentin
• Format: Article
• Language: English
• Subjects: Accounting; Acquisitions; Firm performance; Management performance audit; Takeover
• ISSN: 2212-5671; 2212-5671
• DOI: 10.1016/S2212-5671(12)00157-8

Several rapid changes had taken placed in companies involved in a M&A process, especially when managerial practices are encountered. Consequently, the management performance audit is an efficient analysed tool that quantifies how the economic resources were used by shareholders. While the number of M&A has increased constantly, expect the financial crisis period, not a proper documentation about the link between the M&A process and the managerial audit could be found. The aim of this paper is to examine if corporate takeovers lead to an increase in firm performance and whether the company manager has an important role. By auditing the manager's performance we can establish if he took the best decisions in order to increase the shareholders wealth and if he put their wiling's into practice. The managers performance can be measured either by quantitative or by qualitative variables. Our study aims to establish if there is a post-takeover long-term performance for the companies supposed to a merger and acquisition process. The results indicate an improvement of financial indicators, as the impact of managerial audit performance cannot be denied.