Why Investment Banks Are Not Used in Some Mergers ab 48.99 € als Taschenbuch: Role of Investment Banks Mergers Acquisitions Abnormal Returns. Aus dem Bereich: Bücher, Wissenschaft, Wirtschaftswissenschaft,
This study examines the short-term and long-term wealth effects of 96 cross-border bank mergers between 1985 and 2005. In the short-term, even after a thorough accounting for information leakage, transactions are found to be wealth-creating, albeit only on a net basis with target gains more than compensating for bidder losses. Contrary to earlier evidence, no abnormal long-term returns are detected, which supports the validity of the inferences drawn from the short-term. Furthermore, a thorough analysis of factors that can explain wealth creation ex-ante suggests that bidder and net wealth creation is higher if bidders take over targets that are already relatively cost efficient ex-ante and do not acquire in "hot" deal markets.
Scholars researching in the field of Mergers&Acquisitions use a variety of measures to determine acquisition success with more than ambiguous results. This thesis adds to this discussion from a practitioner''s perspective and generates two main findings: First, findings indicate that accounting-based measures and non-financial criteria are significantly more important than those related to the stock market. This contradicts most academic approaches that favor stock market-related measurement (in most cases using abnormal returns). Second, the thesis identifies companies that have pursued or are currently pursuing an acquisition program, defined as "the acquisition of several mutually related targets". Five of these companies are introduced in more detail, as are the characteristics of their respective acquisition program. Results show that acquisition programs have existed for quite a while. Due to their larger relative size, these programs have a more significant potential impact on the company s stock price and, as such, are more carefully watched by analysts and shareholders. Hence, stock market-oriented criteria seem to be more meaningful than for single acquisitions.
Many extant studies have examined the impact of mergers and acquisitions on firm performance. However, there is little research regarding the role played by investment banks in M&A. This book fills this void. This book not only systematically analyzes the functions of investment banking services for M&A, but also uncovers the abnormal returns to both bidders and targets. The author finds that investment banking services are not necessary under certain circumstances, for either bidder or target firms. In addition, the author finds that target firms more likely use the services from investment banks than the bidders. The wealth gains to target firms are more sensitive to the investment banking choices than the wealth gains to bidders. This book should shed some light on M&A reserach for both researchers and practitioners in M&A field.
This book describes the value generated to the shareholders of acquiring companies by the announcement of mergers and acquisitions. Cumulative Abnormal Announcement Returns to those shareholders, due to the announcement of a merger or acquisition, reflect a possible revision of the expected value resulting from boosted economies of scale, future synergies or wealth redistribution among stakeholders. The author investigated how bidder returns dispersed in 168 acquisitions by Dutch companies, and whether or not this dispersion can be explained based upon nine explanatory variables, being Announcement date equals rumour date, Domestic or cross border acquisitions, Payment type, Industry similarity between bidder and target, Public or private target, Owner control in the bidding company, Relative size of the target, Bidder acquisition experience and Market timing. These variables serve as determinants, of which some prove to have a positive or negative influence on the CAAR. Some determinants however have (according to prior empirical research) a positive effect on the announcement share price. A must for all shareholders of acquiring firms acting as bidders in a takeover.
The M&,A (Mergers and Acquisitions) deal is an important corporate decision nowadays, both the number of global M&,A deals and the total transaction value have dramatically increased.This work uses a sample of UK mergers and acquisition from 1985-2004 (inclusive), and shows that relative valuation between acquirers and targets appears to play an important role in explaining companies' acquisition behaviour. This work also uses various methodologies and consistently finds significant negative post-event long-term abnormal returns for acquiring firms and it provides additional empirical evidence regarding pre-bid abnormal returns for both acquiring firms and targets. The analysis should help shed some light on corporate M&,A behaviour and its relation with capital market for both academic researchers and corporate financial managers.
The book examines the market reaction to mergers and acquisitions (M&A) announcements over a period from 2003 to 2015. Mergers and acquisitions continue to be amongst the preferred competitive options available to the companies seeking to grow fast in the rapidly changing global business scenario. M&A as a growth strategy has received attention from developed as well as emerging economies. It has been extensively used by managers as an expansion strategy and also serves as an important instrument for increasing corporate efficiency. Recently, M&A has grown at a rapid pace, creating a need for research to analyze what drives this phenomenon and how it affects firms and markets. As such, this book evaluates the impact of M&A on short-term abnormal returns as well long-term financial performance. It also assesses the management view concerning the motives for undertaking M&A. In addition, the book investigates the corporate governance practices of the acquiring firms and their impact on the short- term as well as long- term performance of those firms.
This book highlights research-based case studies in order to analyze the wealth created in the world's largest mergers and acquisitions (M&A). This book encourages cross fertilization in theory building and applied research by examining the links between M&A and wealth creation. Each chapter covers a specific case and offers a focused clinical examination of the entire lifecycle of M&A for each mega deal, exploring all aspects of the process. The success of M&A are analyzed through two main research approaches: event studies and financial performance analyses. The event studies examine the abnormal returns to the shareholders in the period surrounding the merger announcement. The financial performance studies examine the reported financial results of acquirers before and after the acquisition to see whether financial performance has improved after merger. The relation between method of payment, premium paid and stock returns are examined. The chapters also discuss synergies of the deal-cost and revenue synergies. Mergers and acquisitions represent a major force in modern financial and economic environment. Whether in times of boom or bust, M&As have emerged as a compelling strategy for growth. The biggest companies of modern day have all taken form through a series of restructuring activities like multiple mergers. Acquisitions continue to remain as the quickest route companies take to operate in new markets and to add new capabilities and resources. The cases covered in this book highlights high profile M&As and focuses on the wealth creation for shareholders of acquirer and target firms as a financial assessment of the merger's success. The book should be useful for finance professionals, corporate planners, strategists, and managers.