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Journal articles on the topic 'Mergers and acquisitions'
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1
Shi, Yanping. "Analysis of Financial Risks and Preventive Measures in The Process of Reverse Transnational Merger and Integration of Chinese Enterprises." Frontiers in Business, Economics and Management 14, no. 2 (April 6, 2024): 171–75. http://dx.doi.org/10.54097/f4kh1523.
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Reverse transnational merger and acquisition is a kind of international operation mode in which enterprises in emerging markets merge or acquire enterprises in advanced countries, so as to obtain strategic resources. This is also a "springboard" for enterprises in emerging economies to obtain foreign resources and quickly move to the international market. The Chinese government plays an important role in cross-border mergers and acquisitions, and the integration process is becoming more difficult and the merger is becoming more likely to fail. In addition, Chinese enterprises show new characteristics in many aspects, such as the object of merger and acquisition, the object of merger and acquisition, the industry and the way of merger and acquisition. Through cross-border mergers and acquisitions, enterprises can expand overseas markets, achieve transformation and upgrading, and improve the core competitiveness of enterprises. Based on the case of Geely Auto's acquisition of Volvo, this paper analyzes various financial risks it faces in overseas mergers and acquisitions, and puts forward corresponding countermeasures for Chinese enterprises to prevent and guard against financial risks in overseas mergers and acquisitions and promote the smooth progress of mergers and acquisitions.
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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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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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Saroj, Nikhil Gayaprasad, and Dr Kartikey V. Koti. "History and Growth of Merger and Acquisition." International Journal of Teaching, Learning and Education 2, no. 4 (2023): 15–20. http://dx.doi.org/10.22161/ijtle.2.4.3.
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Almost all management students have taken an interest in the topic of mergers and acquisitions. In an effort to delve deeply into the phenomena of mergers, amalgamations, acquisitions, and takeovers, this study aims to provide its findings. This research aims to examine the development and evolution of merger and acquisition law. Changes in India's Economy Due to Global Developments Trends in Mergers and Acquisitions: Lessons from India Mergers and acquisitions have contributed to a greater degree of internationalization of the global economy, which is one of the most crucial factors in the present situation.
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Chen, Jin, and Ying Wang. "On Risk Management and Response Strategies for Cross border Mergers and Acquisitions of Enterprises." Frontiers in Business, Economics and Management 12, no. 2 (December 6, 2023): 187–95. http://dx.doi.org/10.54097/fbem.v12i2.14878.
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Based on the development of cross-border M&A of Chinese enterprises and the status quo of M&A of Chinese enterprises after the "the Belt and Road" policy was put forward, this paper proposes the risk factors that Chinese enterprises may encounter in cross-border M&A and lists the risks through the research on the preparatory stage, transaction period in M&A and integration period after M&A. After further describing the current situation of China's aviation enterprise mergers and acquisitions and the potential risks in cross-border mergers and acquisitions, this paper introduces Hainan Airlines Group, and uses the case of Bohai Financial Holding, a subsidiary of Hainan Airlines, acquiring Avolon to analyze the possible risk factors that may arise during the merger and acquisition process, propose risk response measures, and finally explore the risks that Hainan Airlines may face in the merger and acquisition process. This article summarizes the risk factors that may arise when enterprises engage in cross-border mergers and acquisitions. Based on cross-border merger and acquisition cases of aviation enterprises, it briefly describes their experience in handling merger and acquisition risks, summarizes the risk points that Chinese enterprises should pay attention to in cross-border mergers and acquisitions, analyzes risk management strategies, and hopes to provide reference significance and role for future cross-border mergers and acquisitions of Chinese enterprises.
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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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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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Pathak, Hari Prasad. "Abnormal Returns around Mergers and Acquisitions in the Nepali Stock Market." Prithvi Journal of Research and Innovation 3, no. 1 (June 2, 2021): 26–42. http://dx.doi.org/10.3126/pjri.v3i1.37433.
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A merger includes two relatively equal entities that are combined to form one legal entity worth more than a sum of its two separate parts. In the last few years, many Nepali financial institutions have been consolidating through mergers and acquisitions. This paper aims to investigate how the stock market reacts when financial institutions announce mergers and acquisitions. This paper also examines the impact of cross-sectional variables on the abnormal returns obtained around merger announcements. The study covers 22 successful merger deals that occurred among 48 financial institutions over the period of 2004 to 2013. This paper used the event study method based on the market model to derive abnormal returns associated around the merger announcement date. The event dates are specified as the dates on which the mergers and acquisitions were announced. The results show that leaving a very few exceptional cases, none of the merged financial institutions received significant cumulative abnormal returns on the merger announcements, regardless of the use of different event periods. The cross-sectional regressions show that the pre-merger performance of target and relative market value are the significant influencing variables on acquirers' cumulative abnormal returns. The finding implies that Nepali financial institutions merge merely to increase their capital base without producing any synergistic effect. Therefore, they need strategic plans for choosing the right partner and achieving other benefits like synergy effect, economies of scale and cost reduction from mergers and acquisitions.
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Aremu, Paul Olabode. "Assets Valuation, Mergers and Acquisitions of Business Organisations in Nigeria." Journal of Finance and Accounting 7, no. 1 (February 18, 2023): 60–75. http://dx.doi.org/10.53819/81018102t4123.
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Although merger and acquisition is very crucial to the growth of organizations, to assess the potential profit and benefits of mergers and acquisitions, company valuation is required. Nevertheless it seems that wrong valuation choices has affected the decisions of many organization as regarding which company to merge with or which one to acquire and this has also affected many business organization. Studies have had inconclusive findings thereby creating a gap which needs to be filled. Hence, this study examined the effect of assets valuation on mergers, and acquisition of selected money deposit banks in Nigeria. This study quantitatively examined how assets valuation affects merger and acquisition of selected money deposit banks in Nigeria. The study employed survey research design. A stratified selection strategy was used to choose a representative sample from the research population. Data were analysed using descriptive and inferential statistics. The study findings shows that Assets valuation has a positive significant effect on mergers, and acquisition of selected money deposit banks in Nigeria (Adj R2 = .279, f = 127.375, p<0.05). The result of hypothesis concluded that assets valuation had a significant effect on merger and acqusition of selected money deposit banks in Nigeria in Nigeria. Based on the findings, the study recommend that adequate valuation of assets be examined or carried before acquiring a bank. Also investors should only invest or merge with banks whose assets have appreciable outlook so as to remain profitable at a long run. Keyword: Assets, Acquisitions, Stakeholders, Mergers, Valuation
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Cheng, Zhengqiu, Yuting Zhou, and Lingrui Zhu. "Case study of Midea Group’s merger with Little Swan." Frontiers in Humanities and Social Sciences 4, no. 2 (February 29, 2024): 82–87. http://dx.doi.org/10.54691/a3n20b08.
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Faced with fierce market competition and changing markets, many companies choose mergers and acquisitions to expand business scale or achieve new business directions, expand into new areas, achieve business diversification, improve competitiveness, and maintain original business conditions and field. In recent years, other companies that need to merge can refer to the analysis results and make correct merger and acquisition decisions by analyzing the performance of the merged company. This article introduces the merger and acquisition of Swan on the American Stock Exchange, and uses financial performance analysis and case analysis techniques to analyze the financial performance of the Midea Group's merger and acquisition. It is hoped that the analysis results will have certain reference value and relevance to the merged company.
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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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Abuzaid, Ahmad Nasser, Aymn Sulieman Al-Qatawenh, Saif-aldeen Marwan Madadha, and Manal Mohammad Alateeq. "The moderating effects of the industry competition level and industry diversification on the relationship between the transaction price of mergers and acquisitions and corporate value." International Journal of Applied Economics, Finance and Accounting 19, no. 1 (April 9, 2024): 50–61. http://dx.doi.org/10.33094/ijaefa.v19i1.1503.
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This study delved into the moderating impact of industry diversification and competition intensity on the relationship between merger and acquisition transaction prices and enterprise value. Using panel data on corporate mergers and acquisitions in Jordan between 2017 and 2022, this study applied a fixed effect model and performed robust regression to test hypotheses. A total of 402 observations for 108 companies were included in the estimation, and year dummies were incorporated into the model to control for year-specific effects. The findings revealed that transaction prices had a significantly negative impact on the firm’s future value. However, this negative effect was mitigated in the opposite direction if the acquirer faced highly competitive intensity. Moreover, in the case of mergers and acquisitions between companies in different industries, this mitigating effect became even more pronounced. The study carries several theoretical implications. It quantitatively demonstrated that the effects of corporate mergers and acquisitions, particularly the effects of transaction prices, influence the corporation’s value. These effects are moderated by the corporation’s competitive environment and the characteristics of the merger and acquisition, including whether it involves companies in different industries. The research also has significant implications for practical corporate merger and acquisition applications. Practitioners should analyse synergies and fair values with target companies and comprehensively consider the competitive intensity of the company's markets that can be effectively accessed through mergers and acquisitions when anticipating the effects of mergers and acquisitions.
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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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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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Vergeles, Vadym, and Dmytro Baiura. "CURRENT TRENDS AND PROSPECTS FOR BUSINESS DEVELOPMENT THROUGH MERGERS AND ACQUISITIONS IN THE WAR AND POST-WAR PERIODS." Bulletin of Taras Shevchenko National University of Kyiv. Economics, no. 222 (2023): 21–26. http://dx.doi.org/10.17721//1728-2667.2023/222-1/3.
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This article highlights the results of the research on current trends and prospects of mergers and acquisitions (M&A) in the market of Ukraine as one of the strategies of business development in the immediate pre-war period and the first year of the war, attention is focused on identifying those branches of the Ukrainian economy that remain attractive to foreign and domestic companies in war conditions investors and will potentially maintain such a state in the nearest war and post-war periods. The importance of merger and acquisition agreements in the strategic development of business has been studied, the main motives and goals of merger and acquisition agreements for investors and investment recipients have been summarized, the problems for investors related to the implementation of mergers and acquisitions in Ukraine have been studied, the attractiveness criteria of the Ukrainian economic sector for implementation have been determined mergers and acquisitions, examined the industry structure of mergers and acquisitions in the nearest pre-war period, namely in 2021, to determine priority industries in peacetime, considered statistical data of mergers and acquisitions in 2022, highlighted potential planned mergers and acquisitions to be implemented in the near future, the largest 15 mergers and acquisitions are presented, it is established that the IT and telecommunications sector showed the greatest resistance to the consequences of the war, state policy measures are identified that can stimulate the revival of foreign and domestic investment in Ukrainian companies. On the basis of the conducted research, the most attractive sectors of the economy of Ukraine for foreign and domestic investors were determined, which showed the greatest resistance to the consequences of the war, as well as in which the revival of mergers and acquisitions is expected in the war and immediate post-war periods.
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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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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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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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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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Tiwari, Shiv Shankar, Ajay Kumar Asthana, and Riya Amar Tewari. "Merger of Banks: A Critical Evaluation." RESEARCH REVIEW International Journal of Multidisciplinary 8, no. 2 (February 15, 2023): 93–97. http://dx.doi.org/10.31305/rrijm.2023.v08.n02.016.
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Merger in banking sector has both the managerial and financial aspects. The mergers and acquisitions can also enhance the credit capacity of the banks. In order to sustain in the globalized economy, the mergers and acquisitions can be helpful to the banks. In order to create the next generation banks, the mergers and acquisitions are very helpful. But the mergers and acquisitions are not a free lunch. There are certain hurdles also. There are challenges to manage the cultural differences and staff unrest arising out of the mergers and acquisitions. The customers may also create panic at the time of mergers and acquisitions of the banks. After the merger takes place, the issues related to ownership and control needs to be solved effectively. If these issues are solved positively, the merger would result into the benefits to the banks as well as to the customers of the merging banks. If otherwise, the merger would result into the problems to all the stake holders.
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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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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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Wang, Yuhan. "A Research on Identification and Prevention of Corporate Financial Fraud Behaviour in the Context of High-Performance Commitment: Taking Aerospace Communications’ Merger and Acquisition of HiPAD Intelligent as an Example." SHS Web of Conferences 188 (2024): 01026. http://dx.doi.org/10.1051/shsconf/202418801026.
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In recent years, there are often high premium acquisitions based on high-performance commitment in corporate mergers and acquisitions. The performance commitment is intended to alleviate the information asymmetry between the two parties of mergers and acquisitions, but the pressure brought by the high-performance commitment often triggers the company’s financial fraud behaviour. This paper will use the case study method to select the classic case of Aerospace Communications merger and acquisition of the HiPAD, in-depth analysis of the merged party HiPAD of the financial counterfeiting means, and corresponding to the identification of signs of financial fraud research. This paper analyses the abnormal signs in the public disclosure information of HiPAD from the unique perspectives of financial information identification and non-financial information identification, parent company and subsidiaries, providing a reference direction for the financial fraud identification path. Finally, it puts forward a universal proposal for the prevention of corporate financial fraud in the context of the pressure of the performance commitment, which provides a feasible method for the similar mergers and acquisitions and high-performance commitment cases.
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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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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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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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Cheong, Kaman, Fanrui Guo, and Jinshi Lu. "Analysis of Huaxing Yuanchuang M&A Based on PEG and EVA Valuation Model." Advances in Economics, Management and Political Sciences 36, no. 1 (November 10, 2023): 53–65. http://dx.doi.org/10.54254/2754-1169/36/20231785.
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In the process of expanding operations, enterprises often encounter bottlenecks in terms of capital, technology, management, and other aspects. In order to tackle these problems, enterprises often choose to issue bonds, go public, mergers and acquisitions, etc. to expand their production and business scope, update management models, and improve their competitiveness. Due to the short introduction of the merger and acquisition mechanism, the analysis and research of mergers and acquisitions by various enterprises are relatively shallow, and the success rate of mergers and acquisitions by Chinese enterprises is low. This study conducts a research and analysis on the first merger and acquisition case on the Science and Technology Innovation Board, i.e., the case of Huaxing Yuanchuang's acquisition of Olyto. Based on PEG and EVA valuation models, it analyzes the motivation and results of Huaxing Yuanchuang's acquisition of Olyto's business behavior. By valuing and comparing the stock price of Huaxing Yuanchuang before and after the merger and acquisition behavior, the conclusion that the merger and acquisition behavior is not successful is drawn. Research has found that under the PEG valuation model, the stock price of Huaxingyuan Chuang after the merger is slightly overvalued, while under the EVA valuation model, the stock price is greatly underestimated.
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Nadeem, Ayyaz, Muhammad Irfan, Zulfiqar Ali, and Shoukat Ali. "Behavioral and Rational Explanation of Stock Price Performance Around Mergers and Acquisitions in Pakistan: Evidence from Decomposition of Market to Book Ratio." Asian Bulletin of Big Data Management 4, no. 1 (February 9, 2024): 38–52. http://dx.doi.org/10.62019/abbdm.v4i1.102.
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This study aims to analyze the firm-specific errors (FSSE) as a proxy for mis-valuation and the long-run value-to-book ratio as a proxy for growth opportunities during mergers and acquisitions. In this study, the researcher used the RKRV methodology, which was developed in 2004, to analyze firm-specific errors and future growth opportunities by decomposing the market-to-book ratio in the merged organization of the Pakistani financial sector. The researcher used the mergers and acquisitions data from the financial sector from 2000 to 2021. For the purpose of analysis, the researcher prepared one year of pre-merger and three years of the merger performance of merged financial institutions and compared it with nonmerger financial institutions. The results of non-zero log differences between market values and fundamental values show that in Pakistan firms, firm-specific errors (FSSE) exist in the merged and nonmerger financial institutions. The second component of this methodology was to calculate the long-run value of the book (LRVTB) by taking the difference between the estimated market value and the firm's book value as a proxy for long-run growth opportunities. The results show that no long-run growth opportunities exist in Pakistan's merged and non-merged financial institutions because the difference between estimated market value and book value is negative. The third component of this study is to estimate time series sector error (TSSE) by taking log differences between fundamental value and estimated market value if the firm-specific error exists in the valuation of firms and there are no long-run growth opportunities. The results show that time series sector error also exists in the valuation of financial institutions. The researcher concludes that the mergers and acquisitions intentions are to meet the minimum capital requirement enforced by The State Bank of Pakistan. The merger and acquisition activities that took place during the years 2000 to 2011 are the legislative mergers. The results satisfy the economic shocks theory. There is no issue of agency problems, whether mergers are successful.
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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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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.
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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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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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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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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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Suidarma, I. Made, and Re Dream JS Jacko Remses. "Using mergers and acquisitions to increase stock returns in the banking sector: A case study on the Indonesian stock exchange." Asian Economic and Financial Review 13, no. 12 (December 15, 2023): 1020–29. http://dx.doi.org/10.55493/5002.v13i12.4935.
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This study aims to determine the impact of merger and acquisition (mergers and acquisitions) activity in the banking sector on stock performance. It focuses on banking companies listed on the Indonesia Stock Exchange (IDX) that carried out mergers and acquisitions from 2019 to 2021. A 15-day period was observed, consisting of seven days before and seven days after the mergers and acquisitions event and the day of the event itself. The data was analyzed using market study methods and event studies. Stock price data was used to analyze the stock returns during mergers and acquisitions events, and market studies were used to measure the reactions through changes in stock prices after certain events. The results revealed that stock returns and abnormal stock returns increased across all events (E1, E2, and E3). Additionally, cumulative abnormal returns showed a positive effect on events E1 and E3, while event E2 showed a negative effect. Overall, the findings indicated that the market responded positively to mergers and acquisitions activity in the Indonesian banking sector, and the acquired banks performed well after the mergers and acquisitions. The study's results have implications for the internal management of companies, as it suggests that mergers and acquisitions could potentially lead to profit gains in the banking sector. Moreover, investors can use this insight to make more informed decisions when considering investments in the banking sector.
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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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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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Lindiyani, Lindiyani, Nizwan Zukhri, and Ari Agung Nugroho. "Comparative Analysis of Financial Performance before and After Mergers and Acquisitions in Companies Listed on the Indonesia Stock Exchange." International Journal of Business, Technology and Organizational Behavior (IJBTOB) 3, no. 2 (April 30, 2023): 96–103. http://dx.doi.org/10.52218/ijbtob.v3i2.266.
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This study aims to determine the significance of differences in company financial performance before and after mergers or acquisitions. The variables used to measure a company's financial performance consist of the illiquidity ratio (CR), activity ratio (TATO), solvency ratio (DER,) and profitability ratio (NPM, ROA). The population of this study is all sectors of companies listed on the Indonesia Stock Exchange (IDX) which carried out mergers and acquisitions for the 2016-2020 period totaling 38 companies. iSample was determined by the purposive sampling method and obtained by 17 companies. The financial statements used and analyzed are two years before and two years after the merger or acquisition. The data analysis methods in this study include the Kolmogorov-Smirnov One-Sample normality test, the PairedI sample T-Test, and Wilcoxon'si Signed Ranksi Test. The results of hypothesis testing found that there were no significant differences in all financial ratios before and after mergers and acquisitions.
Keywords: Acquisition, Financial Performance, Merger
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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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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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Faisal Khan, Abu Naiahn, Kabir Hassan, Neal Maroney, and Jose Francisco Rubio. "Efficiency, Value addition and performance of US bank mergers." Corporate Ownership and Control 14, no. 1 (2016): 59–72. http://dx.doi.org/10.22495/cocv14i1p6.
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There is little consensus regarding the overall performance of mergers and acquisitions in the banking industry. The goal of this paper is to investigate the change in operating performance, efficiency, and value addition of US bank mergers and acquisitions after GLBA. We extend the previous research by combining all the previous methodologies used in mergers and acquisitions studies and add a new methodology, namely Expected EVA improvement. We will test whether these performance metrics yield similar results or if the performance of mergers varies depending on the measurements. We will also examine the factors that have significant impact on changes in bank performance. Our empirical results lead to the conclusion that the industry-adjusted operating performance of merged banks increases significantly after a merger. This finding is consistent with the findings of Cornett et al. (2006).We also find that the acquirer expected EVA improvement increases significantly after a merger. Revenue enhancement opportunity appears to be more profitable if there exists more opportunity for cost cutting such as geographically focused and diversified mergers. Product diversification mergers increase the industry adjusted performance more than product focused mergers. The efficiency or profitability of targets have either a positive or no effect on acquirer performance.
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Baryshnikova, N. S., and A. P. Baranova. "Business valuation in mergers and acquisitions." Siberian Financial School, no. 2 (August 22, 2023): 103–7. http://dx.doi.org/10.34020/1993-4386-2023-2-103-107.
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The article provides an overview of ideas about the essence of the company's restructuring, the process of mergers and acquisitions, methods of valuation in the process of mergers and acquisitions of companies. There was a need for a comparative description of the methods of assessing the value of the organization. The conclusion is made about the scope of the profitable, costly and comparative method in assessing the value in merger and acquisition transactions. The assessment obtained as a result of the application of financial analysis indicators enables the company's management to solve the problems of strategic choice and allows comparing alternatives to the strategy, making a judgment on the feasibility of a merger and affiliation transaction.
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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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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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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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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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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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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.
Full textAbstract:
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.