The Efficiency of Merger and Acquisition in Telcom Sector of Pakistan

Abstract

The researcher has analyzed that how the technical efficiency of total assets, current assets model, expenses model of the telecom industry in Pakistan. For this purpose the researcher has used two stages in which one is the CCR model which has calculated the efficiency by the technology in the time spam of 5008-2012 and multiple regression is being used to analyze second stage factors just like the intensity of acquisition, sequence of acquisition and more important is the efficiency which tells us about the efficiency of the companies. As the results tell that there is negative value between sequence of acquisition and TE in both total asset model and current model asset. Further findings also showed that there is a significant positive relationship between size and TE in total Asset model and the in the total asset model but the former holds a positive relationship while the later showed negative relationship. Based on the regression analysis, none of the mentioned factors can explain the changes in TE model. In the future research areas, it is recommended the other variables like existence of government lined corporation among the telecommunication companies and the role of regulatory as they might also affect companies which are involved in M&A.