Read Books Online and Download eBooks, EPub, PDF, Mobi, Kindle, Text Full Free.
The Shortrun Impact Of Acquisitions On Shareholder Value During The Economic Downturn For Acquiring Jse Listed Companies
Download The Shortrun Impact Of Acquisitions On Shareholder Value During The Economic Downturn For Acquiring Jse Listed Companies full books in PDF, epub, and Kindle. Read online The Shortrun Impact Of Acquisitions On Shareholder Value During The Economic Downturn For Acquiring Jse Listed Companies ebook anywhere anytime directly on your device. Fast Download speed and no annoying ads. We cannot guarantee that every ebooks is available!
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:
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:
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).
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:
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.
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.
Book Synopsis Impact of Merger and Acquisitions on Stock Returns by : Dr. Amir Rafique
Download or read book Impact of Merger and Acquisitions on Stock Returns written by Dr. Amir Rafique and published by . This book was released on 2013 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: Mergers and acquisition are not only related to accounting measures of performance of firms but it also affects the wealth of shareholders either positively or negatively. According to Hubris hypothesis, the merger and acquisition announcement brings negative effect to shareholders wealth and decreases the abnormal return in post period. The present study took this analysis separate for long and short run period. To capture immediate effect on shareholders return study used Market Model to calculate abnormal returns and employed the t-test on it to check the significant differences in two sample data set. Out of 12 cases of M&A eight mergers showed negative abnormal returns for post period with statistical significance at 1% level, two at 5% and two acquiring firms reduced returns were not statistically significant. Overall on the basis of most of M&A results, the study concluded consistent results with earlier studies. The long run analysis employed by using Ohlson (1995) model for firm value with introducing dummy variable for the pre and post period. The results indicated coefficient of dummy for merger was -0.52 with statistical significance at 1% level which is demonstrating negative effect on share price which ultimately reduces the returns. The study concluded that merger and acquisition announcement bring negative effect on shareholders return either for short run or long time period.
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:
Book Synopsis The Financial Impact of Post-Mergers and Acquisitions: Short-Run Share Price Performance of Acquiring Firms in Hong Kong by : Chun Wing Dorothy Chiu
Download or read book The Financial Impact of Post-Mergers and Acquisitions: Short-Run Share Price Performance of Acquiring Firms in Hong Kong written by Chun Wing Dorothy Chiu and published by . This book was released on 2023 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study investigates the financial impact of post-mergers and acquisitions by delving into the short-run stock performance of acquiring firms, if and how deal characteristics affect the (cumulative) announcement abnormal return in a developed financial market- Hong Kong. I hypothesize that (cumulative) abnormal returns of buyers are positive around announcements, deals that belong to industry-irrelated, cash-financed, cross-border, and privately-owned targets would overperform, while large deal values would underperform. From a sample of 60 M&A deals from 2018 to 2022 initiated in Hong Kong, my results show a positive relationship between the share price performance of buyers and post-announcement period. Industry-related deals worsen, mergers and large-value deals benefit the stock performance of acquiring firms, while cash payment, cross-border, and private deals do not play a significant role. This paper contributes to the M&A academia by grasping the recent post-M&A performance in the Asian financial market and detecting a significant alignment between the form of deal and (cumulative) announcement abnormal return.
Book Synopsis The Acquisition Value Cycle by : Howard E. Johnson
Download or read book The Acquisition Value Cycle written by Howard E. Johnson and published by . This book was released on 2009 with total page 365 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis An Analysis of UK Domestic Cash Acquisitions by : Yuan-Hsin Wang
Download or read book An Analysis of UK Domestic Cash Acquisitions written by Yuan-Hsin Wang and published by . This book was released on 2009 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The significant impact of method of payment on the share price abnormal returns following mergers and acquisitions have been broadly considered and documented in US and UK empirical studies (Agrawal and Jaffe 2000). In the UK, all-cash acquisitions show insignificant negative or small positive abnormal returns, whilst the all-equity acquisitions have significant negative returns. Whilst it is tempting to conclude that it is simply the form of financing that separates the shareholder value destruction of equity-financed takeovers from cash takeovers, such a conclusion tends to ignore the question of where the cash to fund the acquisition comes from in the first place. Theory tells us this should matter. Whilst different theories on firm financing offer competing explanations on both managerial choices and shareholder preferences, it seems reasonable to ask the question whether the source of the cash influences the long run wealth effect of the acquisition. In order to shed light on this issue, this investigation looks at short-term daily abnormal returns as well as long-term abnormal returns including a five-year horizon of post-takeover returns and a three-year horizon of pre-takeover returns. The short-term daily abnormal returns support the signalling information hypothesis to some extent as acquirers financing takeovers using internal cash out-perform those financing takeovers by equity or debt issues. After categorizing the research sample firms into two sub-groups, one being internal funding while the other being external sources including equity or debt, the share price abnormal returns show statistically significant differences between these two sub-groups over 11-day event windows. Further, by using one- and two-dimensional analyses and a univariate test, the results reveal that UK cash acquisitions explored by this investigation contradict the free cash flow (FCF) hypothesis. Regression models show that book-to-market ratio is important in explaining the short-term daily abnormal returns. The long-term post-takeover stock performances show sensitivity to the benchmark adopted as well as the calculation used for the long-term abnormal returns, i.e. cumulated or compounded. Owing to the small sample firms entering the calendar time monthly portfolios, the calendar time approach employs White (1980) corrections and a GLS model to mitigate the effects of heteroskedasticity in the research sample. Generally speaking, long-term abnormal returns show a negative pattern for the whole sample as well as the sub-groups depending on their dominant financing methods. Furthermore, the univariate and multivariate tests demonstrate that the FCF hypothesis cannot explain the 60-month share price abnormal returns of the research sample. According to the coefficient derived from regression model(s), the most significant factor to predict 60-month abnormal returns is relative size (market value of target to that of bidder). The results suggest that the bigger the relative size of the target, the more negative the abnormal return will be (Hansen 1987, Martin 1996, Loughran and Vijh 1997). Besides, the institutional investors contribute a positive effect on long-term share price performance, which is consistent with the findings of Chen, Harford, and Li (2007). The pre-takeover share price abnormal returns over three years intervals prior to the bid announcements clearly show that cash acquirers overall experience a significant positive stock performance. This result is robust to adopting various benchmarks of event time and calendar time regression-based framework. Based on the dominant financing method used for the acquirers, firms issuing debt before the bid announcements do perform extremely well. Those firms subsequently perform badly for post-takeover long-term intervals. Accordingly, this phenomenon demonstrates a mean reversion picture. Regardless of whether an event time or a calendar time approach is used, high q firms always have higher abnormal returns even when allowing for other factors, such as free cash flow or cash stock. However, multinomial logistic tests fail to find any statistically significant link between pre- takeover abnormal returns and the form of financing.
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:
Book Synopsis Shareholder Benefits and Firm Performance by : Shavin Malhotra
Download or read book Shareholder Benefits and Firm Performance written by Shavin Malhotra and published by . This book was released on 2006 with total page 23 pages. Available in PDF, EPUB and Kindle. Book excerpt: Previous research on international mergers and acquisitions has not looked at the valuation consequences of international acquisitions by firms from a developing economy. This study examines the announcement effect and the post-acquisition long-term performance of 96 Indian international acquisitions of U.S. firms made in the period 1999-2005. The study also explores the impact of the Indian acquiring firms' U.S. acquisitions on their underlying operating variables, and risk diversification. We find that while the international acquisition announcements by Indian firms create significant short-term shareholders' wealth, in the long-run international acquisitions have a negative impact on the shareholders' wealth. We also find a significant decrease in the acquiring firms' financial profitability ratios, though there is an evidence of risk-reduction due to global diversification.
Book Synopsis The Impact of Domestic Mergers and Acquisitions on Acquirer Shareholders' Wealth in India by : Neelam Rani
Download or read book The Impact of Domestic Mergers and Acquisitions on Acquirer Shareholders' Wealth in India written by Neelam Rani and published by . This book was released on 2013 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the share price performance of domestic mergers and acquisitions in India during the period 2003-2008. The focus of the paper is on the shareholders of acquiring firms. The present work performs a disaggregated analysis for sub-samples based on the status of the target firm acquired. The sample is divided into two categories: (i) acquisition of target firm to be totally absorbed with the acquiring firm (ii) target firm remains as subsidiary (51-100%). The study further investigates the effect of method of financing (cash or stock) employed in the acquisition and the form of the target firm (listed or unlisted) acquired on the stock returns of the acquiring companies' shareholders. The results indicate that acquisitions generate 1.60% (statistically significant) cumulative average abnormal returns (CAAR) during the event window of 5 days (-2, 2) for the entire sample. The major finding of disaggregated analysis is that when target remains as a domestic subsidiary, the acquirer earns 2.82% CAAR (statistically significant) over pre-event window of 19 days (-20, -2). In contrast, the acquirer shareholder loses 0.41% CAAR when the target firm is absorbed with the acquiring firm during the same period. The acquisitions financed with cash generate positive abnormal returns. The positive abnormal returns are not observed in the case of acquisitions financed with stock. The acquirer of unlisted domestic target firms experience higher return than the acquirers of listed domestic target firms. However, the acquirers experience (statistically significant) negative abnormal returns for the post-event window of 19 days (2, 20) in all acquisitions.
Book Synopsis Impact of Corporate Governance Score on Abnormal Returns and Financial Performance of Mergers and Acquisitions by : Neelam Rani
Download or read book Impact of Corporate Governance Score on Abnormal Returns and Financial Performance of Mergers and Acquisitions written by Neelam Rani and published by . This book was released on 2015 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The present study attempts to investigate whether differences in the quality of firm level corporate governance standards influence performance of acquiring firms for a sample of companies by creating a corporate governance index. The study is based on a survey of sample of 155 companies having completed mergers and acquisitions deals announced during January 2003-December 2008. The paper analyzes the relationship between corporate governance practices of the acquiring firms and abnormal returns during event windows around the announcement of M&A and post-M&A financial performance of the acquirers. The results reveal a positive relationship between corporate governance standards and the performance of the acquiring firms in short-run as well as long-run.
Book Synopsis Economic Impact of Mergers and Acquisitions in Corporate World by : Frankline Chasha
Download or read book Economic Impact of Mergers and Acquisitions in Corporate World written by Frankline Chasha and published by . This book was released on 2023 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Mergers and acquisitions have been pronounced and adopted with the profound need to combat the economic crisis and neutralize the detrimental effects of the COVID-19 pan-demic. The uncertainty and risks involved in undertaking business operations have rapidly given rise to the strategic and systematic execution of cost-cutting measures and survival techniques. Mergers and acquisitions are one of the most effective strategies for the survival of a company through the creation of synergies and leveraging on economies of scale. The aim of the study was to establish the economic impacts of mergers and acquisitions in the corporate world. The study specifically sought to analyze and determine the extent to which mergers and acquisitions affect the selected variables constituting market share, shareholders' wealth, portfolio diversification, employment, and economies of scale. The analysis apparently observed that mergers and acquisitions have no significant impact on share-holders' wealth in the short run, as indicated by stock price movements, despite com-manding an extensive customer base and market share, reduction of operation costs based on economies of scale, and mitigation of financial risks through portfolio diversification. The corporate employees always impede any kind of mergers and acquisitions due to the un-certainties and apprehensions associated with their engagements and organizational culture pitting them against the conventional narrative that change is inevitable.
Book Synopsis Growing Through Acquisitions by : Tony Snyders
Download or read book Growing Through Acquisitions written by Tony Snyders and published by . This book was released on 2017 with total page 88 pages. Available in PDF, EPUB and Kindle. Book excerpt:
