The Comparative Impact Of Acquisitions On The Financial Performance Of Acquiring Companies Across Market Segments Of The Jse

Download The Comparative Impact Of Acquisitions On The Financial Performance Of Acquiring Companies Across Market Segments Of The Jse full books in PDF, epub, and Kindle. Read online The Comparative Impact Of Acquisitions On The Financial Performance Of Acquiring Companies Across Market Segments Of The Jse ebook anywhere anytime directly on your device. Fast Download speed and no annoying ads. We cannot guarantee that every ebooks is available!

The Comparative Impact of Acquisitions on the Financial Performance of Acquiring Companies Across Market Segments of the JSE

Author : Trevor Stevens
Publisher :
ISBN 13 :
Total Pages : pages
Book Rating : 4.:/5 (956 download)

DOWNLOAD NOW!

Book Synopsis The Comparative Impact of Acquisitions on the Financial Performance of Acquiring Companies Across Market Segments of the JSE by : Trevor Stevens

Download or read book The Comparative Impact of Acquisitions on the Financial Performance of Acquiring Companies Across Market Segments of the JSE written by Trevor Stevens and published by . This book was released on 2013 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: There is broad agreement in the literature that in general, mergers and acquisitions in both the short and long run are largely zero or negative, net present value exercises for the shareholders of the acquiring company. At the same time it is believed that significant returns are realised by the shareholders of the target companies. Despite this broad agreement and due to the complexity of the open market, there are still a large number of variables which can and could possibly account for many of the exceptions which have been highlighted in a range of studies. The aim of this study was to investigate whether there is any evidence to suggest that merger and acquisition activity in the different market sectors of the JSE are either, more or less successful than the average. A total of 82 transactions were identified as meeting the strict requirements of the methodology. These included representatives from five sectors Basic Industries, Consumer Goods & Services, Financials, Information Technology and Resources. Event study methodology was used to investigate the abnormal returns of acquiring companies before and after the announcement of the event. It was established that in all but one of the market sectors there was statistically significant evidence that merger and acquisition transactions in different market sectors are either better or worse than the average at creating value for the acquiring company shareholders.

The Impact of Large Acquisitions on the Share Price and Operating Financial Performance of Acquiring Companies Listed on the JSE

Author : Christiaan J.B. Smit
Publisher :
ISBN 13 :
Total Pages : 125 pages
Book Rating : 4.:/5 (644 download)

DOWNLOAD NOW!

Book Synopsis The Impact of Large Acquisitions on the Share Price and Operating Financial Performance of Acquiring Companies Listed on the JSE by : Christiaan J.B. Smit

Download or read book The Impact of Large Acquisitions on the Share Price and Operating Financial Performance of Acquiring Companies Listed on the JSE written by Christiaan J.B. Smit and published by . This book was released on 2005 with total page 125 pages. Available in PDF, EPUB and Kindle. Book excerpt:

The Effect of Mergers and Acquisitions on Long-run Financial Performance of Acquiring Companies

Author : Dieter Bernhardt Halfar
Publisher :
ISBN 13 :
Total Pages : pages
Book Rating : 4.:/5 (956 download)

DOWNLOAD NOW!

Book Synopsis The Effect of Mergers and Acquisitions on Long-run Financial Performance of Acquiring Companies by : Dieter Bernhardt Halfar

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

The Impact of Merger and Acquisition Activities on Corporate Performance Measured on an Accounting and Market Base

Author : Malwina Woznik
Publisher : GRIN Verlag
ISBN 13 : 3656475709
Total Pages : 115 pages
Book Rating : 4.6/5 (564 download)

DOWNLOAD NOW!

Book Synopsis The Impact of Merger and Acquisition Activities on Corporate Performance Measured on an Accounting and Market Base by : Malwina Woznik

Download or read book The Impact of Merger and Acquisition Activities on Corporate Performance Measured on an Accounting and Market Base written by Malwina Woznik and published by GRIN Verlag. This book was released on 2013-08-07 with total page 115 pages. Available in PDF, EPUB and Kindle. Book excerpt: Master's Thesis from the year 2013 in the subject Business economics - Controlling, grade: 1,3, University of Cologne (Seminar für allgemeine BWL und Controlling), language: English, abstract: “Warren Buffett swallows Heinz: Sauce for the sage” – a typical takeover announcement was published lately on 14th February 2013. Warren Buffett, a well known inves tor, acquired along with the financial investor 3G Capital the H. J. Heinz Company for $ 28 billion. This is likely to become the largest transaction in the food industry. The company's stock price rose more than 20.0 percent after the publication which is a very characteristic reaction to deal announcements. Hence, the important question is, if transactions, such as the takeover of the H. J. Heinz Company, affect the corporate performance consistently. In general, the core idea about mergers and acquisitions (M&A) is to generate additional future growth if for example organic growth is limited. If two companies merge or a target is bought by another company (the acquirer), shareholders believe in synergy effects. These are revenue enhancements, cost reductions, tax gains and reduced capital requirements leading to business growth and thus to a higher value of the new company. However, it is questionable if this theory can also be experienced in the real world. Ever since the effects of M&A have been analysed, the market of the United States (US) was used as data source. This is plausible due to the fact that the very first information was well recorded for US companies. It is remarkable that literature contributes very little research on Europe, although the number of announced European transactions is comparable to those of the US. For example, in 2007 the European deals volume overtook the one from the United States of America (USA) for the first time. Moreover, research on single European countries almost never exists or only rarely. One exception is the United Kingdom (UK) with an early takeover history beginning in the 1960s. However, European countries should be analysed separately because of its high diversity regarding the accounting framework, the corporate governance or the legal and regulation structure. For instance, Germany is characterised by conservative accounting principles and a high regulation by the banking sector. These issues may also influence the M&A decision making process.

Pre-Post Acquisition Comparison of Financial Performance of Companies

Author : Suruchi Juneja
Publisher : LAP Lambert Academic Publishing
ISBN 13 : 9783847373414
Total Pages : 80 pages
Book Rating : 4.3/5 (734 download)

DOWNLOAD NOW!

Book Synopsis Pre-Post Acquisition Comparison of Financial Performance of Companies by : Suruchi Juneja

Download or read book Pre-Post Acquisition Comparison of Financial Performance of Companies written by Suruchi Juneja and published by LAP Lambert Academic Publishing. This book was released on 2012 with total page 80 pages. Available in PDF, EPUB and Kindle. Book excerpt: Acquisitions are used to gain competitive advantage over other firms through gaining greater market share for improving competitiveness of companies and, entering new markets and geographies, capitalizing on economies of scale and broadening the portfolio to reduce business risk, etc. India has emerged as one of the top countries with respect to merger and acquisition deals. Indian companies have been actively involved in acquisitions in India domestically as well as internationally, as India increase its participation in M&A deals. This research study is aimed to study the Pre & Post Acquisition Comparison of Financial Performance Of Acquiring Companies [With special reference to Manufacturing sector in India (2000-2006)] by examining some pre- and post-acquisition financial ratios of these firms and to see the differences in the pre acquisition and post acquisition ratios of the firms that go for acquisitions. The results suggest that acquisitions did not experience any significant increase in profitability of the overall firms in the post acquisition period.

The Long Term Impact of Large Acquisitions on the Share Price Performance of Acquiring Companies Listed on the JSE

Author : Kofi Kyei
Publisher :
ISBN 13 :
Total Pages : 204 pages
Book Rating : 4.:/5 (96 download)

DOWNLOAD NOW!

Book Synopsis The Long Term Impact of Large Acquisitions on the Share Price Performance of Acquiring Companies Listed on the JSE by : Kofi Kyei

Download or read book The Long Term Impact of Large Acquisitions on the Share Price Performance of Acquiring Companies Listed on the JSE written by Kofi Kyei and published by . This book was released on 2008 with total page 204 pages. Available in PDF, EPUB and Kindle. Book excerpt:

The Shortrun Impact of Acquisitions on Shareholder Value During the Economic Downturn for Acquiring JSE Listed Companies

Author : Percy Gumede
Publisher :
ISBN 13 :
Total Pages : 144 pages
Book Rating : 4.:/5 (96 download)

DOWNLOAD NOW!

Book Synopsis The Shortrun Impact of Acquisitions on Shareholder Value During the Economic Downturn for Acquiring JSE Listed Companies by : Percy Gumede

Download or read book The Shortrun Impact of Acquisitions on Shareholder Value During the Economic Downturn for Acquiring JSE Listed Companies written by Percy Gumede and published by . This book was released on 2009 with total page 144 pages. Available in PDF, EPUB and Kindle. Book excerpt:

The Impact of Cross Border Mergers and Acquisitions on the Operating Financial and Short-term Share Price Performance of Acquiring Companies Listed on the Johannesburg Stock Exchange

Download The Impact of Cross Border Mergers and Acquisitions on the Operating Financial and Short-term Share Price Performance of Acquiring Companies Listed on the Johannesburg Stock Exchange PDF Online Free

Author : Gareth Viljoen
Publisher :
ISBN 13 :
Total Pages : pages
Book Rating : 4.:/5 (934 download)

DOWNLOAD NOW!

Book Synopsis The Impact of Cross Border Mergers and Acquisitions on the Operating Financial and Short-term Share Price Performance of Acquiring Companies Listed on the Johannesburg Stock Exchange by : Gareth Viljoen

Download or read book The Impact of Cross Border Mergers and Acquisitions on the Operating Financial and Short-term Share Price Performance of Acquiring Companies Listed on the Johannesburg Stock Exchange written by Gareth Viljoen and published by . This book was released on 2013 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Financial Performance of Post-mergers and Acquisitions of Selected Johannesburg Stock Exchange Listed Companies

Author :
Publisher :
ISBN 13 :
Total Pages : 0 pages
Book Rating : 4.:/5 (134 download)

DOWNLOAD NOW!

Book Synopsis Financial Performance of Post-mergers and Acquisitions of Selected Johannesburg Stock Exchange Listed Companies by :

Download or read book Financial Performance of Post-mergers and Acquisitions of Selected Johannesburg Stock Exchange Listed Companies written by and published by . This book was released on 2018 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The aim of this research is to determine whether merger and acquisition processes influence the post-merger financial performance. It also looks at the impact mergers on liquidity, profitability, operating performance and financial risk.

The Impact of Mergers and Acquisitions on the Financial Performance of Acquiring Firms in the UK House-building Industry

Author : Seyedtaban Hajimirza
Publisher :
ISBN 13 :
Total Pages : 122 pages
Book Rating : 4.:/5 (926 download)

DOWNLOAD NOW!

Book Synopsis The Impact of Mergers and Acquisitions on the Financial Performance of Acquiring Firms in the UK House-building Industry by : Seyedtaban Hajimirza

Download or read book The Impact of Mergers and Acquisitions on the Financial Performance of Acquiring Firms in the UK House-building Industry written by Seyedtaban Hajimirza and published by . This book was released on 2010 with total page 122 pages. Available in PDF, EPUB and Kindle. Book excerpt:

The Short and Long Term Effects of Large Takeovers on the Share Price Performance of Acquiring Companies Listed on the JSE

Author :
Publisher :
ISBN 13 :
Total Pages : 210 pages
Book Rating : 4.:/5 (934 download)

DOWNLOAD NOW!

Book Synopsis The Short and Long Term Effects of Large Takeovers on the Share Price Performance of Acquiring Companies Listed on the JSE by :

Download or read book The Short and Long Term Effects of Large Takeovers on the Share Price Performance of Acquiring Companies Listed on the JSE written by and published by . This book was released on 2012 with total page 210 pages. Available in PDF, EPUB and Kindle. Book excerpt:

The Impact of Acquisition on Financial Performance and Stock Returns

Author : Hamidreza Sakaki
Publisher : LAP Lambert Academic Publishing
ISBN 13 : 9783659181498
Total Pages : 92 pages
Book Rating : 4.1/5 (814 download)

DOWNLOAD NOW!

Book Synopsis The Impact of Acquisition on Financial Performance and Stock Returns by : Hamidreza Sakaki

Download or read book The Impact of Acquisition on Financial Performance and Stock Returns written by Hamidreza Sakaki and published by LAP Lambert Academic Publishing. This book was released on 2013 with total page 92 pages. Available in PDF, EPUB and Kindle. Book excerpt: The study is to undertake the analysis of impact of acquisition on the financial performance and stock return of acquirer companies in Malaysia. The period of study is from year 2005 to 2007 and the samples of companies used are the 49 companies listed on the main board of Bursa Malaysia. In the second part, the study considered the acquisition announcement date as day 0 and analyzed the impact of acquisition announcement on the stock return of acquirer company 20 days before and after acquisition announcement date.

The Effect of Mergers and Acquisitions on Long-run Financial Performance of Acquiring Companies

Author : Dieter B. Halfar
Publisher :
ISBN 13 :
Total Pages : 0 pages
Book Rating : 4.:/5 (934 download)

DOWNLOAD NOW!

Book Synopsis The Effect of Mergers and Acquisitions on Long-run Financial Performance of Acquiring Companies by : Dieter B. Halfar

Download or read book The Effect of Mergers and Acquisitions on Long-run Financial Performance of Acquiring Companies written by Dieter B. Halfar and published by . This book was released on 2011 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Acquisitions and the Demand Curve for Securities

Author : Jan-Hendrik Hugo
Publisher :
ISBN 13 :
Total Pages : pages
Book Rating : 4.:/5 (956 download)

DOWNLOAD NOW!

Book Synopsis Acquisitions and the Demand Curve for Securities by : Jan-Hendrik Hugo

Download or read book Acquisitions and the Demand Curve for Securities written by Jan-Hendrik Hugo and published by . This book was released on 2013 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The frequency with which acquisitions occur in the South African business environment served as motivation to evaluate the effect of acquisition announcements on the share performance of JSE listed shares. The basis of the study was to use event study methodology to evaluate short term effects as well as to investigate size effects in acquisition announcements. Companies were grouped into small and large companies using market capitalisation as segmentation criteria. To evaluate effects on the share price and volume traded, the market demand curve for traded securities was used. It proved to be a useful tool specifically in the evaluation of smaller companies, where information asymmetry was prevalent. The shift in the demand curve was evaluated by constructing a Demand Curve Variable, which showed the direction (if any) of the change in the demand curve. Acquisition announcements by JSE listed companies over the last seven years were evaluated and confounding events were controlled for. The findings supported the fact that there exist differences in the results of the small and large company samples when making acquisition announcements, and that small companies have more pronounced negative effects subsequent to the announcement of an acquisition.

Determinants of Premiums in Acquisitions of JSE Listed Companies

Author : Andrew Jonathan Duvenage
Publisher :
ISBN 13 :
Total Pages : pages
Book Rating : 4.:/5 (956 download)

DOWNLOAD NOW!

Book Synopsis Determinants of Premiums in Acquisitions of JSE Listed Companies by : Andrew Jonathan Duvenage

Download or read book Determinants of Premiums in Acquisitions of JSE Listed Companies written by Andrew Jonathan Duvenage and published by . This book was released on 2013 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The success of an acquisition is not measured solely through market reaction or the ability to integrate the target, but also by the ability of acquiring firms to conclude the transaction at a price that does not fully erode the net present value benefits of the transaction. The aim of this research is to identify factors that result in and influence the premiums that are paid in acquisitions. The research then aims to analyse these independent variables in terms of their influence on acquisition premiums. Out of 11,927 transactions by JSE listed companies during the years 2000 2009, only 30 transactions met the defined sample criteria. Target firm characteristics, acquiring firm characteristics, and transaction characteristics were investigated to assess the predictive power of the independent variables as individual factors and as components of a multivariate framework that explain the premiums paid in corporate acquisitions on the JSE. Only two independent variables, namely managerial performance and acquiring firm leverage, were identified as significantly predictive variables for either market value or book value premiums through the use of more than one analytical technique. Results were not consistent across both book value premiums and market value premiums, and it was found that conflicting results materialised when different techniques were used to analyse the data. The conclusion of the study is that the variables analysed had limited predictive ability: there was a high incidence of outlying data, which significantly influenced the results of the study: and that the sample was smaller than ideal, and it would be advisable for further studies to get a larger sample by either changing the sample criteria, or by looking at data over a longer time period.

The Impact of Acquisitions on Firm Performance

Author : Carmine Gioia
Publisher :
ISBN 13 :
Total Pages : 42 pages
Book Rating : 4.:/5 (129 download)

DOWNLOAD NOW!

Book Synopsis The Impact of Acquisitions on Firm Performance by : Carmine Gioia

Download or read book The Impact of Acquisitions on Firm Performance written by Carmine Gioia and published by . This book was released on 2013 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt: The general purpose of this paper is to investigate the effects of ownership change on the performance of private and closely held companies. The research is conducted on a single European country, Denmark, in the period from 1991 to 1999. We test the matching theory of ownership change presented by Lichtenberg and Siegel (1992) and find empirical support on the hypothesis that changes in ownership via acquisition can be a mechanism to correct for lapses in efficiency. Acquisition targets are characterized by a low level of factor productivity at the time prior to the acquisition compared to non acquired companies, and to their industry median. Acquired firms benefit from the change of ownership and improve their productivity and financial performance in the post acquisition period. Among surviving firms, acquisitions have a positive effect on sales and employment growth, suggesting an increase in the scale and efficiency of the firm. Selectivity bias and endogeneity have been taken into account during the estimatio n.

Does Financial Performance Improve Post Cross Border Merger and Acquisitions?

Author : Vanita Tripathi
Publisher :
ISBN 13 :
Total Pages : 18 pages
Book Rating : 4.:/5 (13 download)

DOWNLOAD NOW!

Book Synopsis Does Financial Performance Improve Post Cross Border Merger and Acquisitions? by : Vanita Tripathi

Download or read book Does Financial Performance Improve Post Cross Border Merger and Acquisitions? written by Vanita Tripathi and published by . This book was released on 2015 with total page 18 pages. Available in PDF, EPUB and Kindle. Book excerpt: The present study focuses upon the comparison between the pre and post merger financial performance of the Indian companies undertaking cross border mergers and acquisitions during 1998-2009. An attempt has been made to assess the performance on an aggregate basis, on the basis of timing of the acquisition - before crisis and during crisis and on the basis of the development status of the foreign targets' economies. The results revealed a significant increase in size accompanied with a decrease in profitability, liquidity and solvency. This could be due to various reasons - industry specific factors, timing of the acquisition, status of the development of the target's economy. The other reasons could be companies' inexperience in foreign markets owing to lesser knowledge of handling cross border mergers and acquisitions as compared to western counterparts. A disaggregated analysis on the basis of timing of crisis reported a significantly lower growth in the size for the Indian companies acquiring during the time of US crisis as compared to those which did acquisitions before the crisis. These companies also accounted a significant deterioration of profitability, liquidity and solvency due to an increase in the operating costs and decline in demand. Although, valuation of the foreign companies especially those located in US and Europe during the time of crisis had reduced but for the operation of the merged firms expenses have to be made. However deals done in developed countries provided a significantly higher increase in the size than those done in developing countries owing to higher number of acquisitions in the former group. But the profitability, liquidity and solvency decline was higher in case of deals accomplished in developed countries. Our results suggest that the companies should diversify their portfolio of international exposure. Developing countries are emerging as new breed of consumers. Thus the focus of cross border mergers and acquisitions should be a balanced one considering the time as well as the location of the target.