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A large proportion of acquisitions results in shareholder wealth destruction. This study examines who is responsible for allowing bad acquisitions. Using a sample of 349 tax-free, stock-for-stock, pooling acquisitions over 1993-2001, the announcement period abnormal returns of acquirers are...
Persistent link: https://www.econbiz.de/10014046835
Business Combination in form of acquisition brings a lot of enthusiasm on the shareholders and the economy. These are however complex transactions governed by statutory provisions, regulator’s guidelines and professional input. This study explored business combination in the Malawian Banking...
Persistent link: https://www.econbiz.de/10013307664
Consideration is the sum paid by an acquirer in exchange for shareholding in an investee and is a product of offer and acceptance principle which reflects the wishes of the buyer and seller. The exact number of shares to be purchased is supposed to be unequivocal and what must be paid should be...
Persistent link: https://www.econbiz.de/10013307669
Business combination in the banking sector plays a significant role in any given economy as proponents purport that it is a catalyst for attaining economies of scale to realise competitive advantage through cost and quality differential. Opponents postulate that big banks abuse their position...
Persistent link: https://www.econbiz.de/10013307686
Staff retrenchment is one the contentious legal battle an acquirer probably faces because acquired firms so often had run into financial problems and had to lay off some employees who might have been challenging employer’s decision during business combination process. Such legal exposure...
Persistent link: https://www.econbiz.de/10014361503
This paper connects changes in employer characteristics through job transitions to employee earnings following mergers and acquisitions (M&As). Using firm balance sheet data linked to individual earnings data in Canada and a matched difference-in-differences design, we find that after M&As...
Persistent link: https://www.econbiz.de/10014436997
Private equity buyouts have sparked debates among labor unions and worker representatives on how they affect workers. This chapter provides an overview of academic evidence on how private equity buyouts affect workers. We review the theoretical reasons why employees could be affected and then...
Persistent link: https://www.econbiz.de/10014393375
The objective of the paper is to offer an evaluation of existing theories towards understanding the increase in mergers and acquisitions in an emerging market such as Turkey. A review of the existing theoretical and applied literature suggests that the neoclassical hypothesis (the q theory of...
Persistent link: https://www.econbiz.de/10014045358
This paper addresses the key determinants of merger failure, in particular the role of innovation (post-merger … introduce a model of process innovation where merged firms exibit intra-merger spillover of knowledge under different market … section we test the model implications for merger failure for M&A data from the US biotechnology industry in the 90s. We find …
Persistent link: https://www.econbiz.de/10003693092
a merger to create value, it will usually be necessary that one or both parties is below minimum efficient scale or has … insight into a merger's true motives and its likelihood of creating value …
Persistent link: https://www.econbiz.de/10012920666