Value Creation or Destruction? Evaluating M&A Outcomes in Pakistan’s Financial and Non-Financial Sectors

This study investigates the impact of mergers and acquisitions (M&As) on the performance of firms listed on the Pakistan Stock Exchange. A sample of 13 companies, engaged in M&A activities between 2009 and 2020, was analyzed. The study covers a four-year window—two years before and two years after each merger or acquisition. Firm performance was evaluated using three key indicators: Modified Value Added Intellectual Coefficient (MVAIC), Return on Investment (ROI), and Net Profit Margin (NPM). Simple ratio analysis was employed to compare pre- and post-M&A performance. The findings reveal a decline in ROI and NPM following M&A events, whereas MVAIC showed a positive trend, suggesting an improvement in intellectual capital efficiency post-merger. These results highlight a mixed impact of M&As on firm performance in the Pakistani context. Keywords- Value Creation or Destruction, Evaluating M&A, Pakistan’s Financial and Non-Financial Sectors