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Journal articles on the topic 'Mergers and acquisition'
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1
Soundarya, M. Baby, S. Moghana Lavanya, and S. Hemalatha. "Merger and Acquisition of Business Organization and Its Impact on Human Resources." Journal of Business Strategy Finance and Management 1 and 2, no. 1 and 2 (December 28, 2019): 69–72. http://dx.doi.org/10.12944/jbsfm.01.0102.07.
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There is an assumption that, when merger and acquisition takes place, two companies join together will have greater value than the companies functioning alone, ie., to create synergy. Merger and acquisition among the companies are gaining its momentum, due to the enhanced competition among the corporates in domestic and the global market. This paper discusses about merger and acquisition and the motives behind it. Some mergers and acquisitions are unsuccessful due to some factors like financial, marketing and operational issues. Human resource problems in the merged companies also resulted in the failure of the mergers and acquisitions. So, this article proposes to discuss about HR issues at each phase of merger and acquisition, strategies to overcome the issues were also discussed.
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Brews, P. "Corporate growth through mergers and acquisitions: Viable strategy or road to ruin?" South African Journal of Business Management 18, no. 1 (March 31, 1987): 10–20. http://dx.doi.org/10.4102/sajbm.v18i1.992.
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Corporate growth through mergers and acquisitions is strategy adopted by many South African companies to achieve their growth objectives. However, research in both the United Kingdom and the United States of America has found that most mergers and acquisitions do not meet expectations. Many fail and are divested, at considerable human and financial cost. To date, little research on the viability of growth through mergers and acquisitions has been done in South Africa. In the light of this, in-depth interviews were recently held with 20 senior South African executives, concerning the practices adopted by their organizations in the execution of mergers and acquisitions. This article presents the findings of the research in three specific areas: the formulation of a merger and acquisition strategy; the formulation of an acquisition profile; and the viability and critical success factors in adopting a growth through mergers and acquisitions strategy. Broadly speaking, it was found that the sample interviewed had a good understanding of the acquisition profile, but tended to be less focused in their reasons why their organizations elected to pursue a growth through merger and acquisition strategy. In addition, mergers or acquisitions seem to be more successful in the South African context than in other countries, where similar research has been conducted. A number of reasons for success or failure enumerated in the literature were confirmed. The main finding was that corporate growth through mergers and acquisitions can be either a viable strategy or road to ruin. Companies that systematically plan and manage their merger or acquisition programmes are likely to be successful; ad hoc approaches are likely to fail. The article provides aspects of a framework within which such a merger or acquisition programme may be structured to ensure success.
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Ben Letaifa, Wissal. "Mergers and acquisitions: A synthesis of theories and directions for future research." Risk Governance and Control: Financial Markets and Institutions 7, no. 1 (2017): 71–74. http://dx.doi.org/10.22495/rgcv7i1art9.
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The purpose of this paper is to review a synthesis of theories and empirical studies dealing with the mergers and acquisitions in the recent decay in an attempt to provide directions for future research. The review focuses on four main streams including: first, the motives for mergers-acquisitions; which are the strategic profits, the overconfidence of managers and the desire to create a big empire resulting from merger. From second, corporate characteristics of firms that did merger or acquisition; third, the economic consequences of the operation of merger and acquisition and finally; fourth, the implication on the market with the impact of merger on the value of the firm. We think that this article can give another idea about the information disclosed by any company choosing to merge and can be analyzed by practitioners by giving them the theoretical background of the merger and acquisition problem.
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Gu, Yue, Shenglin Ben, and Jiamin Lv. "Peer Effect in Merger and Acquisition Activities and Its Impact on Corporate Sustainable Development: Evidence from China." Sustainability 14, no. 7 (March 25, 2022): 3891. http://dx.doi.org/10.3390/su14073891.
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The research aims to investigate the existence of peer effect in mergers and acquisitions and study its impact on corporate sustainable development. It first constructs a peer effect testing model to examine whether there is peer effect in mergers and acquisitions, based on quarterly data in China between 2005 and 2019. Then, two econometric models are proposed separately to explore the impact of economic policy uncertainty on the merger and acquisition peer effect, as well as how the peer effect affects corporate sustainability. The key findings show that (i) firms tend to imitate their peers’ merger and acquisition behaviors, which means that the peer effect does exist in mergers and acquisitions; (ii) economic policy uncertainty could strengthen the peer effect in mergers and acquisitions; (iii) the peer effect has a negative impact on corporate sustainable development, and the impact is more significant within a relatively short period. Therefore, this study enriches the research of behavior science in mergers and acquisitions, improves the accuracy of peer effect testing and enables both firms and policymakers to mitigate irrational imitation in merger and acquisition deals, thus achieving their sustainable development goals.
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SKALOZUB, Liudmyla. "Merger & acquisition in the banking sector." Economics. Finances. Law, no. 2/2 (February 28, 2020): 19–23. http://dx.doi.org/10.37634/efp.2020.2(2).4.
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Nowadays there is a considerable amount of information in the literature about mergers and acquisitions of companies in various business fields which gives the world economy an incentive for mergers and acquisitions of financial institutions – banks, which, having large assets, control economic processes in individual countries. The article examines the current state of the market of mergers and acquisitions in the banking sector of Europe and Ukraine. The experience of merging banking structures is examined, the advantages and disadvantages of concluding agreements are identified, factors that may trigger merger or acquisition agreements are identified. The purpose of the article is to investigate the processes of mergers and acquisitions of banks in the Ukrainian and European financial markets. The current market conditions dictate strict rules not only for entry, but also for the functioning of banks in their segment. Globalization processes in today's world are one of the prerequisites for increasing the number of mergers and acquisitions concluded in the banking sector. The article examines the current state of the market of mergers and acquisitions in the banking sector of Europe and Ukraine. The experience of merging banking structures is examined, the advantages and disadvantages of concluding agreements are identified, factors that may trigger merger or acquisition agreements are identified. The merger or acquisition agreements concluded on the European banking market have been analyzed. By analyzing the concluded M&A agreements in the European banking market, we can say that the value of such agreements is gradually reduced over the period 2012-2017. The practice of merger and acquisition agreements in the banking sector of Ukraine is analyzed. Crises in the banking sector and the Ukrainian economy as a whole make it possible to say that investors are less interested in the domestic banking system, which indicates that it is impossible to increase the number of mergers and acquisitions of domestic banking institutions. It is worth noting that there are currently about 100 banks in Ukraine that are declared insolvent, and a significant amount of non-performing loans can be a serious deterrent to increasing M&A transactions.
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Nuansari, Shindy Dwita. "PERFORMANCE OF MERGER AND ACQUISITION, DIRECTOR EXPERIENCE, AND MODERATION EFFECTS OF BOARD CHARACTERISTICS, BIDDER CHARACTERISTICS, AND TYPE OF MERGER AND ACQUISITION." Manajemen Bisnis 10, no. 1 (August 27, 2020): 41. http://dx.doi.org/10.22219/jmb.v10i1.10788.
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This research focuses on influence of the experience of independent directors (two tier systems) on mergers acquisitions performance and considers several other factors as moderation. Purpose of this study was to determine the effect of the experience of independent directors to be moderated by board characteristics, bidder characteristics, and types of merger acquisitions on merger and acquisition performance and to be controlled by independent director’s age. Research obtained from the company's financial and annual report data in 2009 - 2019. The dependent variable used in this study was merger and acquisition performance. Independent variable used in this study is independent director experience. Moderating variables in this are board characteristics, bidder characteristics, mergers and acquisitions types. The results of this study proves that the experience of director experience positively influences performance of merger and acquisition, board and bidder characteristics, type of merger and acquisition strengthen the positive influence of the experience of independent directors on merger and acquisition performance.
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Tang, Yijia, and Yiding Yao. "A Business Analysis of Cross-Border M&A in the Context of Sustainable Development Strategy——A Case Study of ANTA & FILA." BCP Business & Management 20 (June 28, 2022): 1002–9. http://dx.doi.org/10.54691/bcpbm.v20i.1092.
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Transnational mergers and acquisitions are an essential part of economic globalization. In recent years, it has also become a new trend in corporate development. More and more companies seek international sustainable development through cross-border mergers and acquisitions. However, cross-border mergers and acquisitions obtain more efficient income and bear a certain degree of risk. Making a suitable merger and acquisition plan, selecting the merger and acquisition target, and the enterprise's operation and development after merger and acquisition have essential research value. This article uses quantitative analysis and qualitative analysis methods to study the case of ANTA's purchase of FILA, starting from the initial stage of the merger, the status quo and the development forecast. After the merger and acquisition, according to the indicators of Revenue Share, Return on Equity (ROE), Current assets turnover rate in the financial data, the results show that both FILA and ANTA have significant improvement in profitability and operating capacity, and have long-term development potential. On the other hand, from the point of the business model and brand positioning, this paper analyzes the positive impact of the acquisition on brand management and brand development. Thus, this Sub-cross-border mergers and acquisitions case has a positive impact and promotes a win-win result. Finally, this article will combine the topic itself, and according to the status quo of brand development and market trends, some views and recommendations are also put forward for the further development and operation of enterprises. It is hoped that the case study can provide useful case references for more entrepreneurs and academic researchers.
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Chandra, Budi, and Seli Seli. "Tata Kelola Perusahaan, Keuangan, Merger dan Akuisisi, dan Efisiensi Modal Manusia Sebagai Variabel Moderasi." E-Jurnal Akuntansi 32, no. 10 (October 9, 2022): 3046. http://dx.doi.org/10.24843/eja.2022.v32.i10.p11.
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This study aims to determine the effect of corporate governance and finance on mergers and acquisitions and to use human capital efficiency as a moderating variable. This research theoretically uses the theory of corporate control. The research sample is companies that carry out merger and acquisition activities and have been listed on the IDX in 2017-2021. The analytical method used was logistic regression and moderated regression analysis (MRA). The results showed that the size of the board of directors, institutional shareholders, and foreign ownership had a significant positive effect on mergers and acquisitions. Human capital efficiency is able to moderate the relationship between institutional shareholders and cash dividends on mergers and acquisitions.
Keywords: Merger and Acquisition; Corporate Governance; Human Capital Efficiency
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Raj, Priyanka, and Priyanka Pathak. "Level of Job Satisfaction among Acquisition and Erstwhile Bank Employees after Merger and Acquisition." Journal of Humanities and Social Sciences Studies 4, no. 3 (July 13, 2022): 113–18. http://dx.doi.org/10.32996/jhsss.2022.4.3.7.
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Mergers and Acquisitions are taking place and have dramatically increased in every industry, and the banking industry is not left untouched. As we all know, the banking sector plays an important role in the Indian economy, and it is like a base of the Indian economy. In the last five years, most of the public sector banks were merged for the betterment of the banking industry, and 12 nationalized public sector banks remain after merger and acquisitions. Everything has its own advantages and disadvantages. So Mergers and Acquisitions also have their own advantages, such as - minimized operating expenses, a rise in the share, it prevents the shutdown of an unsuccessful business, avoiding duplication, etc., and disadvantages like:- a breakdown in communication, it creates joblessness, no working experience in the past, strict evaluation, complicated situations, etc. Apart from these things, many bank employees have experienced many psychological effects of mergers and acquisitions. The purpose of this research was to study the effects of the merger and acquisition process on the job satisfaction level of bank employees. For this purpose, the Job Satisfaction Scale (Developed by B. L. Dubey) was used to collect data from 100 bank employees from various banks in the Patna District of Bihar aged between 25 to 50 years. Analysis was done with the help of statistical techniques like mean, SD, and t – value. The result of this study reveals significant differences in job satisfaction levels among Erstwhile and Acquisition Bank Employees as well as officers and clerks groups belonging to the same bank.
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Babatunde Bunmi, Osifalujo, Isiaka Najeem Ayodeji, and Olufemi O. Omotilewa. "Merger and Acquisition and Perfomance of Deposit Money Banks in Nigeria: Pre and Post Analysis." Sumerianz Journal of Business Management and Marketing, no. 312 (December 4, 2020): 183–91. http://dx.doi.org/10.47752/sjbmm.312.183.191.
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Low capital base, insolvency, poor corporate governance and incessant banks distress among other factors have contributed to the recent failure of banks in Nigeria. To curb such challenges, banks all over the world now adopt mergers and acquisitions as a strategy to improve their performances. Therefore, this study examined the impact of mergers and acquisition on the performance of deposit money banks in Nigeria. The study considered capital structure, asset profile, total deposit and profit after tax of the selected bank as the measurement for the performance and effect of merger and acquisition of the bank in both pre and post merger and acquisition period. Data were collected from the published financial statements of the bank namely former Intercontinental Bank Plc and Access Bank (now Access Bank Plc) from 2005 to 2017 and the model was formulated using ordinary least square method. It was revealed that for both the pre-merger and post-merger periods, it was revealed that the access bank performed better. In the post – merger and acquisition period as asset profile and total deposit has no significant effect on the profit after tax of access bank in Nigeria, while capital structure has a significant effect on profit after tax of access bank plc. While in the pre-merger and acquisition capital structure, asset profile and total deposit have no significant impact on profit after tax of access bank plc. The study concludes that mergers and acquisitions have a significant impact on the performance of deposit money bank in Nigeria. Therefore, the study recommended that banks can merge or acquire one and other. This has proved to be an effective strategy for rescuing ailing or weak banks. This would provide financial muscles and managerial competence that would enhance financial performance.
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KOROLEVA, Ekaterina V., Polina V. OSYKA, and Vladlen N. SHAKHOV. "Analyzing the impact of mergers and acquisitions on the profitability of seller company shares in the oil and gas industry of Russia." Financial Analytics: Science and Experience 15, no. 2 (May 30, 2022): 128–42. http://dx.doi.org/10.24891/fa.15.2.128.
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Subject. We investigate the behavior of profitability of seller's shares in relation to key accompanying events in mergers and acquisitions in the Russian oil and gas industry. Objectives. The aim is to determine the nature of the impact of dates of merger or acquisition announcement and completion on the profitability of shares of a Russian oil and gas company acting as a seller. Methods. The study rests on the analysis of mergers and acquisitions, using the event study methods. Results. The paper shows that announcement and execution of a merger or acquisition transaction positively affect the profitability of seller’s shares in the oil and gas sector of Russia. We constructed models that indicate an increase in the profitability of seller companies relative to projected profitability without a merger or acquisition transaction. Conclusions. The findings are of practical significance and can be taken into account by financial managers when planning mergers and acquisitions and forecasting their impact on stock returns. Stock market participants may also value the obtained data.
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Watakah, Lilian N. "Mergers and Acquisition and Financial Performance of Insurance Companies." Journal of Finance and Accounting 6, no. 3 (September 21, 2022): 119–39. http://dx.doi.org/10.53819/81018102t4071.
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The purpose of this study was to determine the effect of mergers and acquisition on financial performance of insurance companies in Kenya. The specific objectives were; determine effect of marketing networks, investigate effect of product merger, determine effect of asset merger and to assess the effect of price merger on financial performance of insurance companies in Kenya. The study design was panel design targeting11 insurance companies that had undergone merger and acquisition for the period 2000-2020. Secondary data covering the years 2000 to 2020 was collected for the study. The pre and post M&A performance ratios was compared to see if there was any statistically significant change in performance of the insurance companies before and after M&A using panel regression analysis. The findings revealed that marketing network, product merger, asset merger and price merger were able to contribute to 33.05% of the effects of mergers and acquisition on the financial performance of insurance firms in Kenya pre- merger/acquisition. However, the four independent variables were able to explain 53.11percent of the variation in financial performance of merged/acquired insurance companies in Kenya. The regression analysis results pre-merger revealed that there was a positive and significant relationship between marketing network and financial performance (β =.1240957, p=0.009), product merger had positive but insignificant influence on financial performance (β =.0082009, p=0.207), asset merger had positive and significant effect on financial performance (β =.012258, p=0.048), log of price merger had positive, but insignificant effect on financial performance (β =.0006586, p=0.978). However, post mergers results revealed that there was a positive and significant relationship between marketing network and financial performance of insurance companies in Kenya (β =.282855, p=0.000), product merger had positive but insignificant influence on financial performance post-merger (β =.0100136, p=0.199), asset merger had positive and significant effect on financial performance (β =.0179906, p=0.013), the log of price merger had positive, and significant effect on financial performance (β =.0013557, p=0.978).The study concludes that post-merger financial performance was higher than pre-merger financial performance indicating that that merged/acquired insurance firms had improved financial performance. The study thus recommended that for insurance firms seeking to improve on their financial performance, a merger/acquisition would be one of the options to consider. Keywords: Mergers, Acquisition, Marketing networks, Product merger, Asset merger, Price merger, Financial performance.
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Ni’mah, Nur Fathun, and L. M. Samryn. "Analisis Perbandingan Kinerja Keuangan Perusahaan Sebelum dan Sesudah Merger dan Akuisisi." Manajerial 9, no. 1 (August 20, 2017): 31. http://dx.doi.org/10.31479/m.v9i1.19.
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<p align="justify">This study aims to analyze the differences in firm performance before and after mergers and acquisitions on corporate merger and acquisition activity. Corporate performance is measured by using financial ratio: Net Profit Margin (NPM), Return On investment (ROI), Return On Equity (ROE), Debt Ratio, Total Assets Turnover (TATO), Current Ratio (CR) and Earning Per Share (EPS). Quantitative method is used in this research, take the data of public company which had conducted mergers and acquisitions in Indonesia Stock Exchange (IDX) and announce its activity in the period 2007-2011, and analyzed using Wilcoxon signed ranks test and Manova are used to answer hypothesis. The results from this research show that study in 7 financial ratio, NPM, ROI, ROE, EPS, TATO, CR and Debt. On the acquire does not show significant differences in the comparison before and after the acquisition. But the companies that have merged ROI ratios, EPS and Debt there are significant differences before and after the merger.</p>
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Adams, Edward E. "Chain Growth and Merger Waves: A Macroeconomic Historical Perspective on Press Consolidation." Journalism & Mass Communication Quarterly 72, no. 2 (June 1995): 376–89. http://dx.doi.org/10.1177/107769909507200210.
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Between the late 1890s and the early 1930s, newspaper chains experienced new growth. The number of newspaper acquisitions and mergers increased and decreased simultaneously with the emergence and decline of the “merger movements.” This study examines the two waves of merger activity affecting all industries around 1900 and the 1920s and compares it to acquisitions and mergers by the largest newspaper chains. This paper suggests that acquisition activity of all business and industry paralleled the acquisition activity in newspapers and fueled the growth of chains through acquisitions; thus newspapers concentrated at an increased rate because of the larger macroeconomic trend and not because of a tendency isolated to the newspaper industry.
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Deng, Hong Mei. "Enterprise Merger of Financial Risk Management and Protection." Applied Mechanics and Materials 380-384 (August 2013): 4452–55. http://dx.doi.org/10.4028/www.scientific.net/amm.380-384.4452.
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The acquisition is a effective way of enterprise expand market share, improving the competition ability and economic benefit, however, the risk passes through the entire merger and acquisition activity, including financial risk is a successful merger or not. Enterprise merger is a kind of high yield, high risk investment activities. Especially enterprise merger uncertainty characteristics which greatly increased the risk of mergers and acquisitions. The empirical results show that enterprise merger failure rate is very high. How to guard against the risk, increase the probability of successful merger, almost become involved in the enterprise merger each common concern. This article through the study of potential merger of the financial risk, puts forward the prevention measures, and we hope it can provide reference for m&a standard mergers and acquisitions.
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Szezepaniak, Angelika Kedzierska. "Mergers and Acquisitions in CEE Countries." Review of Business and Legal Sciences, no. 14 (July 19, 2017): 7. http://dx.doi.org/10.26537/rebules.v0i14.918.
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The world market economy is currently characterized by the tendency to globalization, which means that companies have to cooperate and tighten their relations. Companies working on the local market do not have many possibilities for development, so mergers and acquisitions (M&A also called consolidations or takeovers) can be a chance for them to cooperate with companies from all over the world. Consolidations (M&A) concern the aspect of management, corporate finance and corporate strategy dealing with buying, selling and merging of different companies. The main goal of mergers and acquisitions is usually an improvement of company performance and shareholder value over a long period of time. Mergers and acquisitions are similar corporate actions - they combine two previously separate companies into a single legal entity. In some cases, terming the combination a "merger" rather than an acquisition is done purely for political or marketing reasons. In a merger of two corporations, the shareholders usually have their shares in the old company exchanged for an equal number of shares in the merged entity.
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Gandhi, Vandana, Vishal Mehta, and Prashant Chhajer. "Post-Merger Financial Performance of ICICI Bank." Shanlax International Journal of Management 7, no. 4 (April 1, 2020): 23–35. http://dx.doi.org/10.34293/management.v7i4.2321.
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India has witnessed Mergers and Acquisitions across sectors and the most talked about mergers are those in the Banking sector. The banking sector attracts more attention because of the wide geographic spread and the scattered spectrum of stakeholders. Post liberalization banking sector has grown by leaps and bounds and has also seen a lot of mergers and acquisitions. ICICI bank is one of the biggest players among the private sector banks, adopted the merger and acquisition route for expansion. It witnessed four mergers and the same have been studied in this paper. Evaluation of the mergers has been done using the CAMEL model. For the study, three years’ pre-merger data and three years’ post-merger data have been taken into consideration. It was found that there was no significant improvement in the financial performance of ICICI Bank post these mergers.
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Kishwar, A., and A. Ullah. "The Role and Impact of Merger & Acquisition of Banking Sector in Pakistan." Financial Markets, Institutions and Risks 3, no. 3 (2019): 113–21. http://dx.doi.org/10.21272/fmir.3(3).113-121.2019.
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Authors: Kishwar Ali, School of Finance, Zhongnan University of Economics & Law, Wuhan, China Atta Ullah, School of management, Huazhong University of Science and Technology, Wuhan China Pages: 113-121 DOI: http://doi.org/10.21272/fmir.3(3).113-121.2019 Download: Views: Downloads: 40 54 Abstract The paper summarizes the arguments and counterarguments in the scientific discussion on determining the effects of mergers and acquisitions for banking institutions. The purpose of this article is to conduct an empirical study to identify the nature of the impact of mergers and acquisitions on Pakistan’s financial sector performance. The research in the article is carried out in the following logical sequence: a thorough literature review on the analysis of key aspects of mergers and acquisitions and their impact on the financial and economic performance of banks before and after their practical implementation; the historical basis of the experience of mergers and acquisitions caused by various economic factors, such as: GDP growth, interest rates on loans, monetary policy; financial analysis of bank profitability, solvency and liquidity indicators before and after the merger and acquisition was conducted. Five commercial banks of Pakistan that were involved in the merger and acquisition processes were selected as the subject of study. The study period is presented before and after the merger and includes two years before the acquisition report and two years after the acquisition announcement by analysis of financial ratios of liquidity, solvency and profitability. The results of empirical and theoretical research have shown that there is a positive relationship between merger and acquisition processes and liquidity ratios of banking institutions; and – the negative impact of such processes on banks’ profitability and solvency in the short term. The author states that the main limitation of the study is the unavailability of financial data until 2006 and the use of a small sample size and a low likelihood of data collection technique, which is limited by a certain type of people and lack of generalization. Keywords: merger, acquisition, bank, solvency risk, liquidity, profitability.
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Королева, Дарья Александровна. "Current global theories, trends and developments in the analysis and valuation of a target company." Современная экономика: проблемы и решения 4 (April 14, 2021): 88–96. http://dx.doi.org/10.17308/meps.2021.4/2578.
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Purpose: the aim of this paper is to perform a thorough, in-depth and current literature review on Mergers & Acquisitions. The emphasis is on the current global theories, global trends and developments within the last 10 years and so in the valuation of a potential takeover of a target company. Discussion: mergers and acquisitions are considered as one of the tools for improving business efficiency. At the same time, a merger and acquisition transaction is justified if there is a synergistic effect. However, recent studies have shown that the most common reasons for an inefficient acquisition are the overestimation of the target company and the synergy effect associated with this acquisition. Thus, the valuation of the target company is the most important aspect at the planning stage of the mergers and acquisitions process. Results: the paper provides a critical review of the literature examining the synergy theory and the development of Tobin’s Q-theory, current global trends in mergers and acquisitions, discounted cash flow analysis, and market multipliers in order to improve the valuation of the acquired company.
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Srbinoska, Dusica Stevcevska. "The Strategic Integration of Enterprises as Determinant Of Merger and Acquisition Success." International Journal of Accounting and Financial Reporting 6, no. 2 (October 4, 2016): 190. http://dx.doi.org/10.5296/ijafr.v6i2.9739.
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Mergers and acquisitions are driven by the same motive: synergy creation and realization of larger value by combining companies. However, numerous merger and acquisition efforts show a lack of critical success elements: attention directed towards integration of employees and work processes. In this research, I focus on analysis of the meaning of post-transactional integration of mergers and acquisitions as a determinant to the business deal success, with particular emphasis on the Republic of Macedonia. The success of the merger i.e. acquisition act depends on how the deal is conducted, i.e. on the success of the integration process, which I demonstrate through a field research across several Macedonian enterprises.
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Lin, Dongyun, James Barth, John Jahera, and Keven Yost. "Cross-Border Bank Mergers and Acquisitions: What Factors Pull and Push Banks Together?" Review of Pacific Basin Financial Markets and Policies 16, no. 04 (December 2013): 1350022. http://dx.doi.org/10.1142/s0219091513500227.
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This paper evaluates factors that encourage or impede cross-border mergers and acquisitions in banking. The effects of bank specific features, as well as bank regulatory factors, from both target and acquiring banks' perspectives, are estimated. Three comprehensive databases are combined to provide a unique dataset to study cross-border merger and acquisition activities of banks. Banking sector regulatory variables included make this study among the first to empirically and comprehensively analyze the interrelationship between bank regulation and cross-border bank mergers and acquisitions. The results indicate that both bank characteristics and country specific characteristics are important determinants of banks' cross-border merger and acquisition activities.
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ZVEZDANOVIĆ LOBANOVA, Jelena, Davorin KRAČUN, and Alenka KAVKLER. "EFFECTS OF CROSS-BORDER MERGERS AND ACQUISITIONS ON GDP PER CAPITA AND DOMESTIC INVESTMENT IN TRANSITION COUNTRIES." Journal of Business Economics and Management 19, no. 1 (May 3, 2018): 124–37. http://dx.doi.org/10.3846/16111699.2017.1408677.
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The study investigates the impact of cross-border mergers and acquisitions on GDP per capita and domestic investment in 22 European transition countries from 2000 to 2014 by using the system Generalized Method of Moments estimator. The main implications are that cross-border mergers and acquisitions have a negative effect on GDP per capita in the year of merger or acquisition, while their lagged level shows a positive impact. From long-term perspective, this type of FDI has negative and significant effect on GDP per capita. The results show that one-year lagged cross-border mergers and acquisitions positively affects domestic investment, suggesting that spillover effects of this type of investment can be expected not earlier than one year after the merger or acquisition. The value of this paper is that our results show how the advances in structural reforms enhance GDP per capita whereas their influence on domestic investment activity is insignificant. We found that there is insignificant impact of the relationship between overall structural reforms and cross-border mergers and acquisitions on GDP per capita and domestic investment both in short and long run. The originality of this study lies in investigation of the dynamic nature of cross-border mergers and acquisitions and their economic effects depending on the quality of structural reforms.
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Mehta, Dhawal, and Sunil Samanta. "Mergers and Acquisitions: Nature and Significance." Vikalpa: The Journal for Decision Makers 22, no. 4 (October 1997): 31–38. http://dx.doi.org/10.1177/0256090919970404.
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The significance of mergers and acqmsltions is undergoing change since liberalization in India. The MRTP Act and FERA have been amended paving way for large business groups and foreign companies to resort to the merger and acquisition route for growth. Further, the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 1997, have been notified. Exit policy would be a step further towards the logical conclusion of liberalization process. All these are likely to change the approach for corporate growth in India. In this article, Dhawal Mehta and Sunil Samanta explain the types of mergers and acquisitions and classify specific cases of mergers and acquisitions. They further suggest areas for future research.
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Krishnan, CNV, and Jialun Wu. "Market Misreaction? Evidence from Cross-Border Acquisitions." Journal of Risk and Financial Management 15, no. 2 (February 21, 2022): 93. http://dx.doi.org/10.3390/jrfm15020093.
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Our goal in this paper is to answer this research question: Do investors understand the longer-term value-implications of cross border mergers and acquisitions, as at the time of their announcements? We examine acquirers’ operating efficiencies around and after cross-border acquisitions and relate this to the announcement-period stock-market reaction. Using a dataset of cross-border mergers and acquisitions (M&A) entailing U.S. acquirers over the period 1990–2013, and using a bootstrapped-DEA (Data Envelopment Analysis) model because any one indicator may not reflect the whole performance of the merger, we find that the operating efficiency of the acquirers decreases around the acquisition, and up to three years after. However, we document evidence of stock market mis-reaction at announcement: the announcement-period acquirer abnormal stock-price return is not significantly associated with acquirer’s operating efficiency post-acquisition. Therefore, investors should be careful interpreting the announcement-period stock-price reaction in cross-border mergers and acquisitions as indicative of merger efficiency gains.
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Savchenko, M. V., and O. V. Shkurenko. "Mergers and acquisitions as a tool for increasing the competitiveness of companies." Management of Economy: Theory and Practice. Chumachenko’s Annals, no. 2019 (2019): 92–105. http://dx.doi.org/10.37405/2221-1187.2019.92-105.
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The article analyzes various theoretical approaches to the definition of mergers and acquisitions. The place of mergers and acquisitions in the sources of economic growth of the company is determined. On the basis of comparative analysis, significant signs of mergers and acquisitions are identified. The modern tendencies of development of the market of mergers and acquisitions in Ukraine are revealed. The stages of development of the Ukrainian market of mergers and acquisitions are substantiated. The main problems affecting the development of this market are identified and analyzed: geopolitical situation in the country, imperfect legal framework, insufficient amount of open information, high level of corruption, unfavorable investment climate. The types of synergistic effects that encourage the activation of mergers and acquisitions are distinguished: general synergism, operational synergism, managerial synergism, tax synergism, investment synergism, innovation synergism. The prospects of the merger and acquisition market in Ukraine will be determined, which will help to solve institutional problems, problems in the sphere of economy, law and ordering on the securities market and regulation of the legality and transparency of the procedures of transfer and acquisition of ownership of assets and in the procedures of their sale.
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Heckova, Jaroslava. "Cross-border mergers and acquisitions in the context of key determinants of their implementation in the pre-merger-andacquisition process." New Trends and Issues Proceedings on Humanities and Social Sciences 4, no. 10 (January 15, 2018): 442–50. http://dx.doi.org/10.18844/prosoc.v4i10.3115.
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Cross-border mergers and acquisitions enable creation of business synergies, gain economies of scale, reduce costs, increase market power and create competitive superiority. The aim of this contribution is therefore to identify and specify the key determinants of implementation of the pre-merger-and-acquisition process (based on analyses of the views of managers from 120 companies) and to verify the new original methodology – ante-Determinants of Mergers and Acquisitions (aDM&A). A factor analysis of the data collected (by means of principal component analysis and varimax rotation) allowed extraction of four key determinants of implementation of the pre-merger-and-acquisition process. The paper also presents the basic parameters of the methodology aDM&A (eigenvalues, percentage of variance explained, Cronbach’s alpha, inter-correlations of the extracted factors), and the results of the analysis of differences in assessment of the extracted factors by managers. Keywords: Cross-border mergers, cross-border acquistions, pre-merger management, pre-acqusition management, methodology aDM&A.
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Amatilah, Fitriah Fatimah, Mochamad Edman Syarief, and Banter Laksana. "Perbandingan Kinerja Keuangan Sebelum dan Sesudah Merger dan Akuisisi pada Perusahaan Non-Bank yang Tercatat di BEI Periode 2015." Indonesian Journal of Economics and Management 1, no. 2 (March 31, 2021): 375–85. http://dx.doi.org/10.35313/ijem.v1i2.2505.
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Merger and Acquisition is one of firm’s effort to maintain and develop life of firm. Research analyze the difference of the firm’s financial performance pre and post merger and acquisition. The sample uses companies listed on the Indonesia Stock Exchange (IDX) and conducted mergers and acquisitions in 2015. The sample consists of 3 acquirer companies that meet the criteria. This study uses a different test Wilcoxon Signed Ranks Test. The results show that of 5 financial ratios, namely, leverage ratio as measured by Debt to Equity Ratio, activity ratio as measured by Total Asset Turnover, profitability ratio as measured by Return On Assets, Return On Equity, and Operating Profit Margin, and market ratios as measured by Price to Book Value experienced significant changes between before and after the company carried out mergers and acquisitions, except for the liquidity ratio measured by Current Ratio which did not change between before and after mergers and acquisitions.
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Roopesh, Roopesh, and Sandhya Sandhya. "Will Mergers and Acquisition Vacillate the Performance of Banks? A Case Study of Public Sector Banks in India." Binus Business Review 13, no. 2 (July 22, 2022): 191–202. http://dx.doi.org/10.21512/bbr.v13i2.7928.
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The recent change that the banking sector sees is the mergers and acquisitions occurring among the public sector banks. Merger and acquisition in the banking sector are part of the reform strategies to improve financial stability and gain smooth operational flow and synergy advantages. The research focused on the aspects of the banks' profitability, solvency, investment, and liquidity in the pre-and post-merger period. The research attempted to understand the varied reasons behind their mergers, acquisition, and success rate. The main objective was to understand the impact of synergy on the performance and profitability of banks. It was an exploratory research to understand the various objectives of mergers and to map the outcome of those objectives. The analysis was done through ratio analysis and paired t-test to gauge the impact of the pre-and post-merger scenario. The results find that the merger and acquisition are a positive move for some banks. However, there are certain banks which are coping at a slow pace with the synergy. The research also discovers that the synergy amongst the banks reacts in a varied way based on the objective of the mergers. The results indicate that the banks cope with the merger and acquisition at a varied pace due to various factors like Non-Performing Asset (NPA), debts, assets, and market share variabilities amongst the banks. The recent pandemic that the world faces can also be considered a factor for slower coping.
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Almazur, Bader, Augustine C. Arize, Giuliana Campanelli Andreopoulos, John Malindretos, and Alex Panayides. "The Reasons and Evaluations of Mergers and Acquisitions." Accounting and Finance Research 7, no. 3 (July 9, 2018): 211. http://dx.doi.org/10.5430/afr.v7n3p211.
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This paper looks at mergers and acquisitions of companies. Specifically, the paper reviews the backdrop of mergers and takeovers, their history, types and reasons, prospects of productivity, synergy, growth, reduction of risk, and associated challenges. The analysis is conducted in the light of mergers and acquisitions in Europe and the United States, which are hotbeds of M&A activities. Through the selected cases, different pre- and post-merger situations are carefully analyzed. The findings are presented in both quantitative and qualitative forms, and the discussion elucidates the findings in light of existing literature on mergers and acquisitions. The paper concludes with solutions to some of the key challenges that mergers and acquisitions face. This exposition contains both text and graphical information and representation of information regarding mergers and acquisition and it provides succinct but relevant analysis of mergers in the 21st century.
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Harumová, Anna. "Model H application to determine synergic effects on merger and acquisition." SHS Web of Conferences 83 (2020): 01021. http://dx.doi.org/10.1051/shsconf/20208301021.
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Synergistic effects arise as effects of joint action based on mergers or acquisitions. Bundling is a common part of the growth strategy. A merger may acquire forms of merger or merger. Acquisition represents the acquisition of the ownership and management value of one company over another. Theory distinguishes in this case from property acquisitions in which the acquisition of the company's assets and capital acquisitions occurs, in which the acquisition of a decisive share in the voting rights of the company is obtained. Reasons for merger and acquisition are to gain more market share, restructure entities, improve balance of payments, and so on. The success of the merger and the acquisition confirms the emergence of a synergy effect. In determining the value of synergies in this article was used newly created Model H, which is based on a valuation of the business enterprise.
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Popovici, Andreea Nicoleta. "The Impact of Mergers and Acquisitions on the Market Value of Shares of Erste Bank Group." Timisoara Journal of Economics and Business 7, no. 1 (June 1, 2014): 102–12. http://dx.doi.org/10.2478/tjeb-2014-0006.
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Abstract Mergers and acquisitions are ways used by banks to improve their profitability and to obtain other advantages. The purpose of this study is to analyze the impact of mergers and acquisitions on the performance of the bidder bank. For this study, I have chosen to research the impact of acquisitions and mergers of Erste Group during 2000-2011, considering the target bank is in Central and Eastern Europe. Using the event study methodology, the result of the study shows that a merger or an acquisition does not improve the value market of the shares of the bidder bank.
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Cox, Raymond A. K. "Mergers and acquisitions: A review of the literature." Corporate Ownership and Control 3, no. 3 (2006): 55–59. http://dx.doi.org/10.22495/cocv3i3p13.
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This paper is a selected literature review of the theories and empirical evidence on mergers and acquisitions. Initially, the fundamental factors, and the underlying theories, causing mergers is explored. Subsequently, the empirical evidence is examined on: (1) the operating performance of the acquirers and the acquired firms before and after the merger, (2) stockholder wealth impact, (3) form of payment used to complete the acquisition, (4) conglomerate mergers, and (5) corporate governance affecting the firm’s ownership and control.
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Hečková, Jaroslava, Róbert Štefko, Miroslav Frankovský, Zuzana Birknerová, Alexandra Chapčáková, and Lucia Zbihlejová. "Cross-Border Mergers and Acquisitions as a Challenge for Sustainable Business." Sustainability 11, no. 11 (June 3, 2019): 3130. http://dx.doi.org/10.3390/su11113130.
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When considering the challenges for sustainable business, companies implementing cross-border reallocation of capital by means of mergers and acquisitions should take into account the context and evaluation of attributes of their future implementation. The main aim of the paper is, therefore, to identify and specify the key attributes of sustainable cross-border mergers or acquisitions (M&As) influencing the considerations about their future implementation. On the basis of the views of managers from 120 companies (international corporations selected from the Zephyr database) located in 45 countries within the European area that had previously been the subject of a cross-border merger or acquisition, significant attributes were extracted in connection with their experience from their implementation. These attributes are taken into account when considering the implementation of a cross-border merger or acquisition in the future. A factor analysis of the data obtained allowed the extraction of three key attributes of implementation of a potential merger and acquisition process as an important tool of business sustainability—aims, concerns, and reasons. This paper further presents the basic parameters of the Attributes of Future Mergers and Acquisitions (AFM&A) methodology: eigenvalues, Cronbach’s alpha values, the percentage of the variance explained, inter-correlations of the extracted factors, and the results of an analysis of differences in the assessment of the extracted factors by managers. At the same time, no statistically significant differences were found in the assessment of the extracted merger and acquisition assessment factors. The study fills in the research gap in the area by identifying and specifying the attributes of considering the future implementation of M&A management in terms of the broader concept of this issue.
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Brennan, Timothy J. "Vertical Mergers, The Coase Theorem, And The Burden of Proof." Journal of Competition Law & Economics 16, no. 4 (June 10, 2020): 488–510. http://dx.doi.org/10.1093/joclec/nhaa015.
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Abstract The challenge by the Department of Justice (DOJ) to AT&T’s acquisition of Time Warner, and a prior challenge by DOJ and Federal Communications Commission to Comcast’s acquisition of NBC-Universal, has increased attention on vertical mergers. The standard approach identifies a tactic that the merged firm would employ that is both profitable and harms consumers. This approach misses the target; a profitable but anticompetitive tactic may be necessary but is not sufficient. The “Coase theorem” implies that courts and enforcement agencies should instead focus on why vertical integration is necessary to achieve an outcome that would be profitable to the merging firms. The focus on the tactic rather than why ownership matters presumes that vertical merger is necessary, without supporting theory or evidence. The same proposition should hold for horizontal mergers, but the required strength of evidence is greater for vertical mergers because mergers between complement providers are first-order beneficial and the conduct facilitated by horizontal mergers but not vertical mergers is typically illegal.
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Soegiharto, Soegiharto. "What Drive the Damage to Post-Merger Operating Performance?" Gadjah Mada International Journal of Business 12, no. 2 (May 12, 2010): 257. http://dx.doi.org/10.22146/gamaijb.5512.
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This study examines whether bidders’ post-merger operat-ing performance are affected by their CEO behavior, premiumspaid to the target firms, the period of mergers, the method ofpayment, the industry of merged firms, capital liquidity, andtheir pre-merger operating performance. Testing the U.S. suc-cessful merger and acquisition data for the period of 1990s, thisstudy finds that in-wave mergers, intra-industry mergers, thepayment of lower premiums, and better pre-merger operatingperformance drive the bidders to produce better post-mergeroperating performance. Three measures of CEO behavior—themain predictor scrutinezed in this study—are proposed andexamined, and the results demonstrate that the effects of thesemeasures on post-merger operating performance are mixed,suggesting that each of the behavioral measures designed in thisstudy may capture CEO behavior in different ways.Keywords: capital liquidity; CEO overconfidence; merger waves, method of pay-ment operating performance
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Gachigo, Justin, Herick Ondigo, Josiah Aduda, and Zipporah Onsomu. "The Effect of Mergers and Acquisitions Strategies on Financial Performance of Commercial Banks in Kenya." European Scientific Journal, ESJ 18, no. 25 (August 31, 2022): 110. http://dx.doi.org/10.19044/esj.2022.v18n25p110.
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The operating environment for commercial banks in Kenya has become very dynamic and highly competitive. The witnessed cases of bank failure and poor financial performance have made commercial banks develop strategies to improve their financial performance, remain competitive, and meet the regulator's compliance requirements. Mergers and Acquisitions Strategies are on the rise as a strategy aimed to alleviate the ailing sector. In light of this, the purpose of this study was to examine the impact on financial performance of commercial banks in Kenya as a result of mergers and acquisitions Strategies. Operating efficiency and market share impact on the financial performance of commercial banks in Kenya formed the specific objectives. The study objectives were supported by synergies theory, resource-based view theory and agency theory. The study adopted a correlational descriptive research design, including cross-sectional data analysis. By the year 2017, 30 commercial banks in Kenya had considered mergers and acquisitions strategies were considered as the population of this study. An average of three-year ratios was computed in both pre-merger and post -acquisition periods inorder to assess the impact financial performance. The years of the deal were excluded. The mean difference between the pre-Mergers and Acquisitions Strategies and post-Mergers and Acquisitions Strategies ratios was tested using the T-test.The findings were that Mergers and Acquisitions Strategies have a statically positive significant relationship with the dependent variable. Recommends from the study are that, the policymakers create policies that facilitate and encourage commercial banks to employ mergers and acquisition strategies to achieve better financial performance.
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Ogendo, Joan Lilian, and Jared Ariemba. "Mergers and Acquisitions for Business Sustainability in Emerging Markets During a Vague Era: A Literature Analysis." AD-minister, no. 41 (December 12, 2022): 35–56. http://dx.doi.org/10.17230/ad-minister.41.2.
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Mergers and acquisitions are the most popular modes of external corporate growth. Business sustainability, which seeks present returns without compromising the ability to earn returns in the future, has come under serious challenges in an environment of uncertainty. While academic literature suggests that in periods of fundamental uncertainty, there is a decline of mergers and acquisitions, this paper analyses an emerging body of research that suggests that merger and acquisition deals in a vague era actually deliver more value compared to those made in normal economic conditions, which most empirical studies do not deliver much value for the acquirer. This paper therefore suggests that firms in emerging markets can use mergers and acquisitions during a downturn to deliver superior value to shareholders. It also argues that mergers and acquisitions are a corporate governance issue, because it is at the board level that the overall strategy of the firm is implemented, including the various growth options of the firm. However, further research on merger and acquisitions during a vague era need to be conducted in various regions of emerging markets.
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Astricia, Rivanny, Isni Andriana, and Reza Ghasarma. "BANKING STOCK ABNORMAL RETURN ANALYSIS OF PRE AND POST MERGER AND ACQUISITION IN INDONESIA." Jembatan : Jurnal Ilmiah Manajemen 17, no. 1 (June 11, 2020): 13–24. http://dx.doi.org/10.29259/jmbt.v17i1.10857.
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The number of mergers and acquisitions (M&A) in Indonesia is growing because of government policy and also their usefulness as a corporate tool to pursue strategic growth and profit. This study aims to analyze the abnormal returns of banking industries pre and post-merger and acquisition in Indonesia. Using a sample of 7 M&A deals in Indonesia from 2018 to 2019, the event study methodology used in this study is Paired Sample T-Test to tell the difference between pre and post abnormal returns. The data that use for calculating is -30 until +30 of Merger and Acquisition. The result shows that from 7 mergers and acquisition there is only one bank that has a significant difference while the rest does not have a significant difference pre and post the event. This research hopefully can be used for further research, useful for investment practitioners.
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Tang, Chia-Hsien, Yen-Hsien Lee, Ming-Chih Lee, and Ya-Ling Huang. "CEO Characteristics Enhancing the Impact of CEO Overconfidence on Firm Value After Mergers and Acquisitions — A Case Study in China." Review of Pacific Basin Financial Markets and Policies 23, no. 01 (March 2020): 2050003. http://dx.doi.org/10.1142/s0219091520500034.
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This study aims to explore whether various characteristics of chief executive officers (CEO) enhance the impact of CEO overconfidence on a firm’s value after mergers and acquisitions. The study finds that overconfident CEOs have a positive impact on firm value after mergers and acquisitions. The study also shows that overconfidence amongst CEOs can help to explain merger and acquisition decisions and the likelihood of pursuing acquisitions. Young CEOs were also found to significantly increase the impact of CEO overconfidence on a firm’s value after mergers and acquisitions, while female CEOs were found to be more risk averse when compared to their male peers, with lower leverage and less volatility in their firms when compared to firms run by male CEOs.
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Suherman, Suherman, Riznita Nuraisyah, and Gatot N. Ahmad. "ABNORMAL RETURN DAN LIKUIDITAS SAHAM ATAS PENGUMUMAN AKUISISI." Jurnal Manajemen 20, no. 1 (March 3, 2017): 151. http://dx.doi.org/10.24912/jm.v20i1.71.
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Tujuan penelitian ini adalah untuk menganalisis perbedaan abnormal return dan likuiditas saham sebelum dan sesudah pengumuman akuisisi. Pengukuran abnormal return menggunakan market-adjusted model. Pengukuran likuiditas saham menggunakan volume perdagangan dan Amihud’s Illiquidity ratio. Periode pengamatan (event windows) penelitian ini selama 11 hari bursa, yaitu 5 hari bursa sebelum pengumuman akuisisi dan 5 hari bursa sesudah pengumuman akuisisi. Sampel penelitian ini adalah 70 perusahaan yang mengumumkan akuisisi antara 2010-2014. Hasil uji hipotesis menunjukkan bahwa 1)terjadi perbedaan abnormal return yang signifikan sebelum dan sesudah akuisisi, dan 2)tidak terdapat perbedaan likuiditas saham yang signifikan pada periode sebelum dan sesudah akuisisi.The purpose of this study is to analyze the difference of abnormal return and liquidity before and after the announcement of mergers and acquisitions. Abnormal returns are measured with market-adjusted model. Liquidity is measured with trading volume and Amihud Illiquidity ratio. The observation period (event windows) of this research is 11 trading days which 5 trading days before the announcement of the merger and acquisition and 5 trading days after the announcement mergers and acquisitions. Research sample consists of 70 companies which announce merger and acquisition between 2010 and 2014. The results show that 1)there is significant differences of abnormal returns before and after merger and acquisition, and 2)there is no significant differences of stock liquidity before and after merger and acquisition.
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Suryani, Dian Fajar, Fahri Ansari Siregar, Ridha Shafina Nur, Zulfahmi Napitupulu, and Suhairi Suhairi . "Analisis Diversifikasi Dampak Setelah Merger dan Akuisisi Pada Kinerja Keuangan Perusahaan yang Terdaftar di BEI." El-Mujtama: Jurnal Pengabdian Masyarakat 2, no. 2 (January 28, 2022): 178–85. http://dx.doi.org/10.47467/elmujtama.v2i2.939.
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In the era of globalization and free trade, the act of conducting mergers and acquisitions is a decision that is increasingly used in business practices and is getting better and better to be considered together. In operating a business, business leadership is always needed to maintain optimal business growth. Executing an M&A strategy is a shortcut to business growth without having to run the business from scratch, for a new type of business. In situations where large entities usually acquire other entities in order to increase competitiveness and minimize expenses. Companies that opt for mergers and acquisitions will get a larger market share and better profits. The method used in this paper is the literature review method. The literature review reviews the scientific literature on a topic and critically analyzes the impact of diversification that occurs after mergers and acquisitions on the level of financial operations of an entity listed on the Indonesia Stock Exchange. mergers and acquisitions as a way for companies to develop their business without starting a new business will certainly have an effect, From the results of the literature review conducted that mergers and acquisitions do not always give great results to the financial operations of an entity, this result could be due to the mission of an entity to merge and acquisitions are for the long ter.
Keywords: Acquisition, Financial Performance, Merger
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Szypko, Andrzej. "THE COMPLEXITY OF THE ACQUISITION - THE ACQUISITION ALGORITHM." sj-economics scientific journal 9 (December 30, 2011): 81–88. http://dx.doi.org/10.58246/sjeconomics.v9i.464.
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External growth of enterprise is a popular way to increase business. Quantity and value of mergers and acquisitions (Mergers and Acquisitions - M & A) increases. However the acquisition of expensive investment. Unfortunately, the high is the quantity of failed acquisitions. It is the result of errors in the complicated process of joining. This article, based on an analysis of the specialist literature, present the complexity of the acquisition and demonstrates the general algorithm for carrying out acquisition. Such an investment, aims at mobilization of efforts for the improvement of the efficiency of its execution. Having a plan, taking into account best practices, increases the chances of success of the acquisition.
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Fatoni, Umi Fadilah, and Amir Soleh. "The Effect Of Mergers And Acquisitions On Stock Prices In Go Public Banking Companies 2015 – 2021." Basic and Applied Computational and Advanced Research Journal 1, no. 2 (February 4, 2022): 63–68. http://dx.doi.org/10.11594/bacarj.01.02.03.
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The purpose of this study was to determine the effect of mergers and acquisitions on stock prices carried out by publicly traded banking companies in 2015-2021. The research method used includes the type of event study research. Data obtained by conducting secondary data search. The analytical method used is a quantitative method, with the data analysis technique used is the paired sample t-test. The results showed a decrease in the average change in stock prices after the announcement of mergers and acquisitions was made. From these results, it has not shown any positive influence from mergers and acquisitions. It can be seen that between 10 days before and 10 days after the announcement of the merger, the results are 0.00000611 and – 0.00129. By using a significant level of 5%, the t-count value in the merger and acquisition is 0.561<2.110 or by looking at the probability shows that 0.562 > 0.05. Thus, there is no Significant Different between 10 days before and 10 days after the announcement of the merger ang acquisition. Suggestions that can be given are to add a longer period of research so that a larger sample allows for better results and it is necessary to consider other variables that affect stock prices, such as interest rates, inflation rates, and other macro influences, and in the end will affect research results.
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Nam, Changi, Dong-Hoon Yang, Myeong-Cheol Park, Gil-Hwan Oh, and Jong-Hyun Park. "Stock Market Reaction to Mergers and Acquisitions in Anticipation of a Subsequent Related Significant Event: Evidence from the Korean Telecommunications Industry." Review of Pacific Basin Financial Markets and Policies 08, no. 02 (June 2005): 185–200. http://dx.doi.org/10.1142/s0219091505000427.
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The objective of this paper is to assess the effect of mergers and acquisitions on shareholder wealth when subsequent related significant events are anticipated. We identify a particular merger and acquisition between telecommunication companies in Korea and examine whether it conveys good or bad news to stock market participants. We hypothesize and find that mergers and acquisitions are interpreted as good news by the marketplace when they are expected to be accompanied by a subsequent related significant event, in our case granting of a government license for the IMT-2000 mobile service.
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Bhaskar, A. Uday, Kanika T. Bhal, and Bijaya Mishra. "Strategic HR Integration and Proactive Communication during M&A: A Study of Indian Bank Mergers." Global Business Review 13, no. 3 (October 2012): 407–19. http://dx.doi.org/10.1177/097215091201300304.
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Research in the past has documented the use of strategic human resources (HR) integration and proactive communication as best practices in mergers and acquisitions (M&A) to deliver the expected synergy out of a combination (merger or acquisition). The failure of majority of M&A deals has been attributed to improper handling of HR issues and lack of a thorough understanding of the merger/acquisition context by the acquiring management. This study was initiated to understand how proactive communication and strategic integration of HR issues improves the chances of deal success. Based on data collected through field interviews with managers of two bank mergers in India, it was concluded that strategic employee communication, appropriate changes in the performance management system and a compensation structure with cutting edge strategic HR practices paved the way for successful integration and merger success in one of the cases studied.
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Putri, Laurenza, Ima Yulita, and Aurelia Wardhani. "Analisis Abnormal Return Saham pada Peristiwa Merger dan Akuisisi di Indonesia." EXERO : Journal of Research in Business and Economics 3, no. 2 (January 24, 2022): 242–67. http://dx.doi.org/10.24071/exero.v3i2.4300.
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This study aims to obtain empirical evidence related to market reactions indicated by abnormal returns around the time of the 2016-2019 merger and acquisition announcement. The population in this study are companies listed on the Indonesia Stock Exchange that have conducted mergers and acquisitions. The sampling technique uses purposive sampling, the data obtained by 12 companies, namely 3 companies do mergers and 9 companies make acquisitions. Data analysis techniques in this study were one sample test method Kolmogorv-Smirnov test, paired sample t-test test, and one sample t-test using SPSS application version 25. The results of this study showed: During the 11 days study period, there were average abnormal return negative that insignificant for 7 days and average abnormal return positive that also insignificant for 4 days around the announcement time of the company’s mergers and acquisitions. These insignificant test results prove that the market was not approved during the period before and after mergers and acquisitions.
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Fatoni, Umi Fadilah. "Analisis Perbedaan Sebelum Dan Sesudah Dilakukan Merger Dan Akuisisi Terhadap Harga Saham Pada Perusahaan Perbankan Go Public." Jurnal Akuntansi dan Audit Syariah (JAAiS) 3, no. 1 (June 24, 2022): 20–27. http://dx.doi.org/10.28918/jaais.v3i1.4728.
Full textAbstract:
The purpose of this study was to determine the effect of mergers and acquisitions on stock prices carried out by publicly traded banking companies in 2015-2021. The research method used includes the type of event study research. Data obtained by conducting secondary data search. The analytical method used is a quantitative method, with the data analysis technique used is the paired sample t-test.
The results showed a decrease in the average change in stock prices after the announcement of mergers and acquisitions was made. From these results, it has not shown any positive influence from mergers and acquisitions. It can be seen that between 10 days before and 10 days after the announcement of the merger, the results are 0,0000611 and – 0,00129. By using a significant level of 5%, the t-count value in the merger and acquisition is 0,561<2,110 or by looking at the probability shows that 0,562 > 0,05. Thus, there is no Significant Different between 10 days before and 10 days after the announcement of the merger ang acquisition.
Suggestions that can be given are to add a longer period of research so that a larger sample allows for better results and it is necessary to consider other variables that affect stock prices, such as interest rates, inflation rates, and other macro influences, and in the end will affect research results.
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Putra, I. Nyoman Nugraha Ardana, and Nengah Sukendri. "Peningkatan Kinerja Melalui Merger Dan Akuisisi." Guna Sewaka 1, no. 2 (August 25, 2022): 45–55. http://dx.doi.org/10.53977/jgs.v1i2.669.
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The realignment of restructuring the company`s capital structure can execute through mergers and acquisitions. This research aim is to review the importance of merger activity and investment in terms of objectives and benefits. Methods used a literature review and secondary data. The research suggests that a company merger and acquisition support operation. There is good financial synergy and diversification, achieves economy of scale and scope that leads to cost efficiency and profitability, can obtain management skills, improve market forces, and may also be tax benefits. Because of that, the merger and acquisition were selective to enhance the company`s performance.
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Lin, Chen, Micah S. Officer, and Beibei Shen. "Managerial Risk-Taking Incentives and Merger Decisions." Journal of Financial and Quantitative Analysis 53, no. 2 (February 26, 2018): 643–80. http://dx.doi.org/10.1017/s0022109017001260.
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We provide evidence concerning the effect of managerial risk-taking incentives on merger and acquisition (M&A) decisions and outcomes for different types of mergers: vertical, horizontal, and diversifying. Using chief executive officer (CEO) relative inside leverage to proxy for the incentives of risk-averse managers, we find that CEOs with higher inside leverage are more likely to engage in vertical mergers, and those mergers generate lower announcement returns for shareholders. This effect of CEO relative inside leverage on returns for shareholders in vertical acquisitions is more pronounced when the acquirer has a higher degree of informational opacity, weak governance, and excess cash.
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Lako, Andreas. "PERANAN CORPORATE STRATEGY DALAM KESUKSESAN-KEGAGALAN MERGER & AKUISISI: SUATU TELAAH LITERATUR." KINERJA 8, no. 1 (November 20, 2016): 70–81. http://dx.doi.org/10.24002/kinerja.v8i1.809.
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Most empirical studies and literature reviews documented that the final results of the wave of mergers and acquisitions in the United States, Canada, and European countries during the decade of 1980s, 1990s and 2000s were always dissatisfactory. In fact, the extent of the failure is higher than the success.However, a comprehensive investigation on the factors motivating the rise of mergers and acquisitions and the causes for success and failure is still rare. This paper reviews the contribution of corporate strategy in success and failure of mergers and acquisitions during three decades. Specifically, this paper reviews literatures with respect to the motives of corporate mergers and acquisitions actions and the trigger factors of their failures. The result of the literature review shows that corporate strategy has a significant contribution to the extent of the success and failure of corporate mergers and acquisitions. The review finds that trigger factors of mergers and acquisitions failure are the ambiguous communications and cross-cultural gaps, inappropriate and insufficient integration and transformation of new corporate culture, incompatible leadership style accustomed with a new corporate climate, inappropriate corporate planning and internal consolidation, inappropriate anatomy of organizational internal factors, and erroneousness in choosing the partners and the timing of mergers and acquisitions. To ensure the successful and sustainability of corporatemergers and acquisitions, therefore, top management and task force of mergers and acquisitions need to accurately consider those internal and external organization factors.Keywords: merger and acquisition, corporate strategy, cross-cultural, financing and operatingsinergy, stockholder wealth.