This study investigates sources of value in mergers and acquisitions. While much emphasis is put on operating synergies from acquisitions the evidence provided in this study shows that the difference between the WACCs of the combined firm and the merging firms may have a significant role on the...

Stock returns around acquisition announcements are widely viewed as being reflective of the net present value created by these transactions. As such, announcement returns should correlate with acquisition outcomes. Using a new measure of realized transaction-level acquisition failure, as well as...

Corporate strategic Mergers and Acquisitions (M&A) mean focus on growth (e.g. revenue growth) and aim to enhance the firm's competitive position. The academic literature reports however, an extremely high failure rate of strategic M&A – their outcomes are very difficult to forecast and they...

This article analyses the performance and value creation of the glamorous operations of mergers and acquisitions (M&A) in the telecommunications sector, trying to understand if the glamour company's M&A operations conduct to the stockholder wealth maximization, and the role of acquirer's...

Recent studies indicate that lending portfoliocomposition in Islamic banks is concentrated towardsdebt-based lending portfolio; however, the ideal lending portfoliocomposition in Islamic banks should be an equity-based lending portfolio. This article explores the effects of the internal...

How does the difference in financing influence the M&As’ effects on businesses in the banking industry? Case study method is applied to evaluate two deals, which are BB&T & SunTrust and KeyCorp & First Niagara Financial Group (one all-equity financed and one cash & equity financed). It is...

From 1987 to 2008, riskier firms were more likely to be taken over. Yet, on average, the acquirer declined in value by 2.8% when it bought a "risky target" (the third tercile, having an annualized idiosyncratic volatility of 61% or more), but only by 0.6% when it bought a "safe target" (the...