Download or read book The Effects of Acquisition Announcements on the Share Prices of Acquiring Companies written by Neil Martin Whiting and published by . This book was released on 1998 with total page 392 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Effect of Acquisition Announcements on the Share Price Movement of the Acquiring Firms written by Ros Zam Zam Sapian and published by . This book was released on 1994 with total page 91 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Mergers and Acquisitions Performance consequences written by Simon Peck and published by Taylor & Francis. This book was released on 2002 with total page 494 pages. Available in PDF, EPUB and Kindle. Book excerpt: This set includes articles from the four main fields which have influenced the study of Mergers and Acquisitions: Economics, Finance, Strategic Management and Human Resource Management. Featuring the key papers by individuals who shaped the field, the collection presents these formative pieces in thematically grouped sections, including coverage of: * Perspectives on the modern business corporation and the role of mergers and acquisitions: historical, financial, strategic and management * Causes of mergers and acquisitions activity * Performance impact of mergers and acquisitions activity * Public policy and the corporation The set features a comprehensive index and original introductory material.

Download or read book What is the Bootstrap Effect Merger Acquisition Activities and their Influence on Stock Prices written by Florian Beyer and published by GRIN Verlag. This book was released on 2020-04-08 with total page 24 pages. Available in PDF, EPUB and Kindle. Book excerpt: Seminar paper from the year 2017 in the subject Business economics - Investment and Finance, grade: 1,7, The FOM University of Applied Sciences, Hamburg, language: English, abstract: This paper will examine the question of how M&A activities influence a company’s stock price and earnings per share (EPS), especially if the bootstrap effect occurs? In 2016, the global mergers and acquisitions (M&A) activities decreased by about 18 percent compared to 2015. Altogether, 17,369 deals with a value of 3.2 trillion (tn.) US-Dollars (USD) were performed. There are numerous reasons to invest and divest in inorganic growth. Organic growth has its limitations, thus acquiring competitors, growing vertically or horizontally as well as accessing new markets are strong motivators to do so. Growing a business is often linked with going public. The decision to be part of the stock market and to perform M&A influences an enterprise’s value for various reasons. To approach these questions, the first chapter gives a general overview of reasons, motivators, risks and benefits of M&A. Thereafter, the influence of M&A on a company’s shareholder value and EPS is examined. Then, the bootstrap effect is explained and subsequently illustrated by an exemplary M&A transaction. Afterwards the risks and benefits of bootstrapping and M&A are analysed to consider its usefulness and influence on the share price and EPS.

Download or read book The Announcement Share Price Performance of Acquiring Firms written by Sandra Maaike Lof and published by LAP Lambert Academic Publishing. This book was released on 2011-10 with total page 96 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book describes the value generated to the shareholders of acquiring companies by the announcement of mergers and acquisitions. Cumulative Abnormal Announcement Returns to those shareholders, due to the announcement of a merger or acquisition, reflect a possible revision of the expected value resulting from boosted economies of scale, future synergies or wealth redistribution among stakeholders. The author investigated how bidder returns dispersed in 168 acquisitions by Dutch companies, and whether or not this dispersion can be explained based upon nine explanatory variables, being Announcement date equals rumour date, Domestic or cross border acquisitions, Payment type, Industry similarity between bidder and target, Public or private target, Owner control in the bidding company, Relative size of the target, Bidder acquisition experience and Market timing. These variables serve as determinants, of which some prove to have a positive or negative influence on the CAAR. Some determinants however have (according to prior empirical research) a positive effect on the announcement share price. A must for all shareholders of acquiring firms acting as bidders in a takeover.

Download or read book Trading Activity and Liquidity Effects Around Private Firm Acquisition Announcements written by Eleonora Monaco and published by . This book was released on 2018 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt: We investigate trading activity and liquidity effects of methods of payment on the stock prices of acquiring firms around private firm acquisition announcements. We find significant rises in trading activity around acquisition announcement dates irrespective of the payment method used; however, fluctuations are lower for earnouts and cash payment options. Stocks of acquirers using earnouts also benefit from enhanced post-announcement liquidity. These effects of earnouts are linked to acquirers' lower risk of being adversely selected when acquiring private firms, given that information asymmetry is inherently lower when using a staggered payment term linked to performance than otherwise.

Download or read book Mergers and Acquisitions written by G. Gregoriou and published by Springer. This book was released on 2007-11-13 with total page 292 pages. Available in PDF, EPUB and Kindle. Book excerpt: This collection of exclusive articles presents the latest research in the area of mergers and acquisitions. It presents what drives corporate performance under different economic conditions, both in the US and across the globe, and examines the role of mergers and acquisitions in maintaining the efficiency of world markets.

Download or read book Bank Mergers Acquisitions written by Yakov Amihud and published by Springer Science & Business Media. This book was released on 1998-02-28 with total page 268 pages. Available in PDF, EPUB and Kindle. Book excerpt: As the financial services industry becomes increasingly international, the more narrowly defined and historically protected national financial markets become less significant. Consequently, financial institutions must achieve a critical size in order to compete. Bank Mergers & Acquisitions analyses the major issues associated with the large wave of bank mergers and acquisitions in the 1990's. While the effects of these changes have been most pronounced in the commercial banking industry, they also have a profound impact on other financial institutions: insurance firms, investment banks, and institutional investors. Bank Mergers & Acquisitions is divided into three major sections: A general and theoretical background to the topic of bank mergers and acquisitions; the effect of bank mergers on efficiency and shareholders' wealth; and regulatory and legal issues associated with mergers of financial institutions. It brings together contributions from leading scholars and high-level practitioners in economics, finance and law.

Download or read book The Effect of Merger and Acquisition Announcements on the Share Price of Bidding Firms written by Roisin O'Connell and published by . This book was released on 1999 with total page 95 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Does Corporate Performance Improve After Mergers written by Paul M Healy and published by Legare Street Press. This book was released on 2023-07-18 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book examines the phenomenon of corporate mergers and the impact they have on performance. Drawing on extensive research and case studies, the authors explore the conditions under which mergers are most likely to succeed and offer guidance to managers looking to pursue a merger strategy. This work has been selected by scholars as being culturally important, and is part of the knowledge base of civilization as we know it. This work is in the "public domain in the United States of America, and possibly other nations. Within the United States, you may freely copy and distribute this work, as no entity (individual or corporate) has a copyright on the body of the work. Scholars believe, and we concur, that this work is important enough to be preserved, reproduced, and made generally available to the public. We appreciate your support of the preservation process, and thank you for being an important part of keeping this knowledge alive and relevant.

Download or read book Mergers written by Patrick A. Gaughan and published by John Wiley & Sons. This book was released on 2005-05-20 with total page 370 pages. Available in PDF, EPUB and Kindle. Book excerpt: A powerful guide for seeking out the best acquisition and merger targets As increasingly more companies look to mergers and acquisitions (M&As) as a source of new growth and revenue, there is an even greater chance that these M&As will go bad. This insightful guide focuses on one of the most often debated and key issues in mergers and acquisitions-why some deals fail miserably and why others prosper. It provides a complete road map for what potential buyers should look for when picking a target and what characteristics of sellers they should steer clear of, as well as pitfalls to avoid during the M&A process. Real-world examples are provided of high-profile failures-Quaker Oats, United Airlines, Sears, and Mattel-and high-profile successes-General Electric and Cisco. Patrick A. Gaughan (New York, NY) is President of Economatrix Research Associates and a professor of Economics and Finance at the College of Business, Fairleigh Dickinson University. He is actively engaged in the practice of business valuations for mergers and acquisitions, as well as other related applications.

Download or read book The Effect of Mergers and Acquisitions on Long run Financial Performance of Acquiring Companies written by Dieter Bernhardt Halfar and published by . This book was released on 2013 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Mergers and acquisitions continue to enjoy importance as strategies for achieving growth, although their success in creating shareholder value remains contested. The aim of this research was to evaluate whether, in the long-run, acquiring companies created or destroyed value by evaluating the differences between pre- and post-acquisition firm performance, using, abnormal share price performance, operating financial performance and intrinsic value performance metrics. This research used a non-representative, judgemental sample of 29 JSE listed firms to conclude that, on average, mergers and acquisitions destroy value within two years post-acquisition, although some evidence was found in support of acquiring firm value creation in the third year after the acquisition. Results indicated a significant -6.62% decline in acquiring firm average cumulative average abnormal return (ACAAR) between 504 trading days before and after acquisition announcement dates. This finding reversed in year three, resulting in a positive ACAAR of 8.76%. Similarly, average intrinsic value (AIV) performance indicated that between one year before and one year after the acquisition, AIV deteriorated with a significant -0.131. However, between year one and two after the acquisition, AIV recovered by 0.112. Overall evidence indicated positive and significant AIV growth of 0.370 between one year before and three years after the acquisition. The research found insignificant results for the pre and post-acquisition evaluation of industry-adjusted cash-flow return on all assets (IACRAA).

Download or read book The Synergy Trap written by Mark L. Sirower and published by Simon and Schuster. This book was released on 2010-05-11 with total page 321 pages. Available in PDF, EPUB and Kindle. Book excerpt: With acquisition activity running into the trillions of dollars, it continues to be a favorite for corporate growth strategy, but creating shareholder value remains the most elusive outcome of these corporate strategies—after decades of research and billions of dollars paid in advisory fees, why do these major decisions continue to destroy value? Building on his groundbreaking research first cited in Business Week, Mark L. Sirower explains how companies often pay too much—and predictably never realize the promises of increased performance and competitiveness—in their quest to acquire other companies. Armed with extensive evidence, Sirower destroys the popular notion that the acquisition premium represents potential value. He provides the first formal and functional definition for synergy -- the specific increases in performance beyond those already expected for companies to achieve independently. Sirower's refreshing nuts-and-bolts analysis of the fundamentals behind acquisition performance cuts sharply through the existing folklore surrounding failed acquisitions, such as lack of "strategic fit" or corporate culture problems, and gives managers the tools to avoid predictable losses in acquisition decisions. Using several detailed examples of recent major acquisitions and through his masterful integration and extension of techniques from finance and business strategy, Sirower reveals: -The unique business gamble that acquisitions represent -The managerial challenges already embedded in current stock prices -The competitive conditions that must be met and the organizational cornerstones that must be in place for any possibility of synergy -The precise Required Performance Improvements (RPIs) implicitly embedded in acquisition premiums and the reasons why these RPIs normally dwarf realistic performance gains -The seductiveness and danger of sophisticated valuation models so often used by advisers The Synergy Trap is the first exposé of its kind to prove that the tendency of managers to succumb to the "up the ante" philosophy in acquisitions often leads to disastrous ends for their shareholders. Sirower shows that companies must meticulously plan—and account for huge uncertainties—before deciding to enter the acquisition game. To date, Sirower's work is the most comprehensive and rigorous, yet practical, analysis of the drivers of acquisition performance. This definitive book will become required reading for managers, corporate directors, consultants, investors, bankers, and academics involved in the mergers and acquisitions arena.

Download or read book AN APPRAISAL OF MERGERS AND ACQUISITIONS written by Amit Sharma and published by Independent Author. This book was released on 2023-05-29 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Questions have generally raised as to why the corporate entities go for mergers and acquisitions (M&As) as this may affect the shareholders of involved companies in different ways and this also influenced by various factors including the prevailing economic environment, size of the companies and more specifically the management of the merger process. This book is based on a study that analyses the impact of M&As on bidders' shareholder wealth and market risk through empirical evidence based on event study methods and cross-sectional regressions. The present study endeavors to analyses the impact of mergers and acquisitions (M&As) on the shareholders' value creation both in short as well as during long-term. The short-term impact has investigated by examining the abnormal returns accruing to the shareholders of acquiring, target and the hypothetical combined entity in event period around the day of announcement of M&As using the market-adjusted model of the popular event study methodology. This study uses a sample of 55 Cases of TATA group of companies involved in M&As during the period January 1, 2000, to December 31, 2015. Analysis has been categorized into three different stages. Under the first stage analysis, all 55 cases have been analyzed one by one, using Market Model and Market Adjusted Model. Abnormal Return and Cumulative Abnormal return have been calculated under both the model. In second stage analysis researcher prepared result of Pre-Event (-10 day to -1 day), Event (0 days), and Post-Event (+1 to +10 day) analysis also provide an average return of pre or postevent. Second stage analysis concluded that overall, the top company i.e. Tata Sons firm faces loss in dealing with mergers and acquisitions. As the event study is classified in Pre-Event days, Event day, and Post-Event days. The conclusion of the were based on Market Model and Market Adjusted Model. After evaluating all 55 cases of mergers and acquisitions researcher find 31 negative and 24 positive cumulative abnormal returns around the pre-event day (t-10 to t-2) under Market Model, 30 negative and 25 positive cumulative abnormal return around the pre-event day (t-10 to t-2) under Market Adjusted Model. In third stage analysis Cumulative Average Abnormal Return across the various event windows have been calculated and check the t-test and P-Value to understand the outcomes. Cumulative Average Abnormal Return values across the various pre-announcement event window (-1, 0), (-5, 0) and (-10, 0) were positive but not significant. The CAAR during the event window (0, 0) were also positive but not significant. The CAAR Value during the post-event window of (0, +1), (0, +5) and (0, +10) there was a constant fall in the CAAR values. The analysis presents the results of t-test conducted to measure the CAAR of acquisitions on different event window Share prices of the Tata firm. On the day of the event is a reaction of the random surprise because of the Mergers and Acquisition announcement as well as the other firm-specific reaction affecting the share price of the firm. Estimation of abnormal returns of Tata firm's has greater variance around the event period than in the contiguous period. These results indicated that returns to bidder firms' shareholders is not appropriate at different event window hence we can say that the market, in general, reacts positive to Mergers and Acquisitions announcements. Later, a strong correction in the market price of the bidder firm's take place as almost all the CAAR values during the post announcements periods are negative. So, a conclusion that can be drawn from the above analysis for the Principal Holding Company also, for Mergers, Managerial Hubris theory seems to hold.

Download or read book The Impact of Mergers and Acquisitions Announcements on the Share Price Performance of Acquiring Companies written by Mthabisi Ndlovu and published by . This book was released on 2017 with total page 90 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Effect of Merger Announcements on Stock Prices of Participating Firms written by Anatoly Gann and published by . This book was released on 1983 with total page 84 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Financial Impact of Post Mergers and Acquisitions Short Run Share Price Performance of Acquiring Firms in Hong Kong written by Chun Wing Dorothy Chiu and published by . This book was released on 2023 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study investigates the financial impact of post-mergers and acquisitions by delving into the short-run stock performance of acquiring firms, if and how deal characteristics affect the (cumulative) announcement abnormal return in a developed financial market- Hong Kong. I hypothesize that (cumulative) abnormal returns of buyers are positive around announcements, deals that belong to industry-irrelated, cash-financed, cross-border, and privately-owned targets would overperform, while large deal values would underperform. From a sample of 60 M&A deals from 2018 to 2022 initiated in Hong Kong, my results show a positive relationship between the share price performance of buyers and post-announcement period. Industry-related deals worsen, mergers and large-value deals benefit the stock performance of acquiring firms, while cash payment, cross-border, and private deals do not play a significant role. This paper contributes to the M&A academia by grasping the recent post-M&A performance in the Asian financial market and detecting a significant alignment between the form of deal and (cumulative) announcement abnormal return.