The Effect of Mergers and Acquisitions Announcement on the Security Prices of Bidding Firms in Asia PDF Download
Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download The Effect of Mergers and Acquisitions Announcement on the Security Prices of Bidding Firms in Asia PDF full book. Access full book title The Effect of Mergers and Acquisitions Announcement on the Security Prices of Bidding Firms in Asia by Lai-Kuen Wong. Download full books in PDF and EPUB format.
Author: Lai-Kuen Wong
Publisher:
ISBN: 9781361225653
Category :
Languages : en
Pages :
Get Book Here
Book Description
This dissertation, "The Effect of Mergers and Acquisitions Announcement on the Security Prices of Bidding Firms in Asia" by Lai-kuen, Wong, 黃麗娟, was obtained from The University of Hong Kong (Pokfulam, Hong Kong) and is being sold pursuant to Creative Commons: Attribution 3.0 Hong Kong License. The content of this dissertation has not been altered in any way. We have altered the formatting in order to facilitate the ease of printing and reading of the dissertation. All rights not granted by the above license are retained by the author. DOI: 10.5353/th_b3195479 Subjects: Consolidation and merger of corporations - China - Hong Kong Stocks - Prices - China - Hong Kong Consolidation and merger of corporations Stocks - Prices
Author: Lai-Kuen Wong
Publisher:
ISBN: 9781361225653
Category :
Languages : en
Pages :
Get Book Here
Book Description
This dissertation, "The Effect of Mergers and Acquisitions Announcement on the Security Prices of Bidding Firms in Asia" by Lai-kuen, Wong, 黃麗娟, was obtained from The University of Hong Kong (Pokfulam, Hong Kong) and is being sold pursuant to Creative Commons: Attribution 3.0 Hong Kong License. The content of this dissertation has not been altered in any way. We have altered the formatting in order to facilitate the ease of printing and reading of the dissertation. All rights not granted by the above license are retained by the author. DOI: 10.5353/th_b3195479 Subjects: Consolidation and merger of corporations - China - Hong Kong Stocks - Prices - China - Hong Kong Consolidation and merger of corporations Stocks - Prices
Author: Lai-kuen Wong
Publisher:
ISBN:
Category : Consolidation and merger of corporations
Languages : en
Pages : 50
Get Book Here
Book Description
Author: Syed Mohammod Mostofa Shams
Publisher:
ISBN:
Category :
Languages : en
Pages : 674
Get Book Here
Book Description
This thesis investigates the market reaction to acquisition announcements made by Australian bidders as well as the long-run operating performance of them using three separate samples of acquisitions: acquisitions of public, private and subsidiary targets. This study was motivated by the economic significance of acquisition activities in Australia, particularly the acquisitions of private and subsidiary targets by listed bidders. These acquisitions are important corporate investment decisions to Australian managers since they have divergent impacts on shareholders and other corporate stakeholders. The first two empirical studies of this thesis investigate the market reaction to acquisition announcements made by Australian bidding firms using large samples of domestic and foreign acquisitions for the period 2000-2010. The second empirical study examines the long-run operating performance of bidding firms. This study employs single factor, Fama-French three factor and four-factor models in generating abnormal returns when investigating the market response to acquisition announcements. It further analyses the impact of bid and firm characteristics in a multivariate setting. In addition, this study also analyses the market adjusted buy and hold returns as an alternative measure of abnormal return. The long-run operating performance is analysed using profitability and cash flow returns while controlling for the 'industry' and 'industry-and-size' benchmarks.The first empirical study examines the market reaction to acquisition announcements when bidders announce acquisitions of domestic targets. The main findings of the first empirical study of this thesis are: (i) the market reactions are positive and significant around the acquisition announcements for all three samples analysed; (ii) bidders for private and subsidiary targets earn higher abnormal returns than bidders for public targets; (iii) bidders on private targets earn higher abnormal returns when the method of payment is stock; (iv) multiple bids for public targets are penalised by the capital market while acquisitions of unlisted public targets are rewarded; (v) privately negotiated acquisitions of private targets and acquisitions of subsidiaries from listed parents for cash are associated with higher abnormal returns; (vi) acquisitions of private targets during the Global Financial Crisis (GFC) have a significant favourable effect on the wealth gains of Australian acquirers. The second empirical study investigates the market reactions when Australian bidders announce acquisitions of foreign public, private and subsidiary targets. The main findings of this study are: (i) the market reaction is positive and significant for the subsidiary targets sample only, while it is negative and insignificant for the public targets and private targets samples; (ii) bidders on private targets earn significant positive abnormal returns when they use stock as the payment method; (iii) multiple bids for private targets and acquisitions of mining subsidiaries are rewarded by the capital market; (iv) investor protection offered by the target country positively influences the abnormal returns generated by the acquirers of public targets while it is negatively related with the return earned by the bidders for subsidiary targets ; (v) acquisitions of private and subsidiary targets from civil-law based target countries are associated with negative announcement period returns; (vi) the market reaction is significantly positive when bidders acquire private targets during the period when the Australian dollar is strong; (vi) acquisitions of public targets from the US are rewarded while the acquisitions of public targets from the UK are penalised.The third empirical study examines the long-run operating performance of bidding firms following the acquisitions announcement. The main findings of this study are: (i) the long-run operating performance is positive and significant for the acquirers of private targets while it is declining for public and subsidiary targets samples; (ii) there is a negative relationship between stock-financed acquisitions and the long-run operating performance for all three samples; (iii) multiple bidders for private targets enjoy significant positive long-run operating performance; (iv) there is a negative (positive) relationship between the pre-acquisition profitability(pre-acquisition cash flow) and the long-run operating performance of bidders for public targets.
Author: Ronald W. Masulis
Publisher:
ISBN:
Category : Consolidation and merger of corporations
Languages : en
Pages : 38
Get Book Here
Book Description
Author: Johannes Distler
Publisher: Springer
ISBN: 3658191120
Category : Business & Economics
Languages : en
Pages : 451
Get Book Here
Book Description
This thesis analyzes the motivation and performance of 403 acquisitions made by emerging multinational corporations (EMNCs) in Western Europe and North America between 1994 and 2013. The findings indicate that most EMNCs were motivated to acquire in order to obtain access to the upstream and downstream know-how of their target firms. In addition, the thesis' event study results demonstrate that EMNCs on average generated value for their shareholders with their acquisitions over short periods around acquisition announcement. This result is particularly significant since similar studies on buying firms from developed markets have frequently come to the conclusion that acquirers destroy shareholder value.
Author: Mark L. Sirower
Publisher: Simon and Schuster
ISBN: 1451603444
Category : Business & Economics
Languages : en
Pages : 330
Get Book Here
Book Description
"Every CEO and Corporate Director who has been in the path of the 'WOW! GRAB IT!' acquisition locomotive should read this book!" -- Charles R. Shoemate, Chairman and CEO, Bestfoods With global acquisition activity running into the trillions of dollars, the acquisition alternative continues to be the favorite corporate growth strategy of this generation's executives. Unfortunately, creating shareholder value remains the most elusive outcome of these corporate strategies. After decades of research and billions of dollars paid in advisory fees, why do these major decisions continue to destroy value? Building on his groundbreaking research first cited in Business Week, Mark L. Sirower explains how companies often pay too much -- and predictably never realize the promises of increased performance and competitiveness -- in their quest to acquire other companies. Armed with extensive evidence, Sirower destroys the popular notion that the acquisition premium represents potential value. He provides the first formal and functional definition for synergy -- the specific increases in performance beyond those already expected for companies to achieve independently. Sirower's refreshing nuts-and-bolts analysis of the fundamentals behind acquisition performance cuts sharply through the existing folklore surrounding failed acquisitions, such as lack of "strategic fit" or corporate culture problems, and gives managers the tools to avoid predictable losses in acquisition decisions. Using several detailed examples of recent major acquisitions and through his masterful integration and extension of techniques from finance and business strategy, Sirower reveals: The unique business gamble that acquisitions represent The managerial challenges already embedded in current stock prices The competitive conditions that must be met and the organizational cornerstones that must be in place for any possibility of synergy The precise Required Performance Improvements (RPIs) implicitly embedded in acquisition premiums and the reasons why these RPIs normally dwarf realistic performance gains The seductiveness and danger of sophisticated valuation models so often used by advisors The Synergy Trap is the first expose of its kind to prove that the tendency of managers to succumb to the "up the ante" philosophy in acquisitions often leads to disastrous ends for their shareholders. Sirower shows that companies must meticulously plan -- and account for huge uncertainties -- before deciding to enter the acquisition game. To date, Sirower's work is the most comprehensive and rigorous, yet practical, analysis of the drivers of acquisition performance. This definitive book will become required reading for managers, corporate directors, consultants, investors, bankers, and academics involved in the mergers and acquisitions arena.
Author: Roisin O'Connell
Publisher:
ISBN:
Category : Consolidation and mergers of corporations
Languages : en
Pages : 95
Get Book Here
Book Description
Author: George William Schwert
Publisher:
ISBN:
Category : Consolidation and merger of corporations
Languages : en
Pages : 68
Get Book Here
Book Description
This paper studies the premiums paid in successful tender offers and mergers involving NYSE and Amex-listed target firms from 1975-91 in relation to pre-announcement stock price runups. It has been conventional to measure corporate control premiums including the price runups that occur before the initial formal bid. There has been little evidence on the relation between the pre-bid runup and the post-announcement premium (the premium paid to target stockholders measured from the date of the first bid). Under what circumstances are runups associated with larger total premiums? The evidence in this paper shows that in most cases, the pre-bid runup and the post- announcement premium are uncorrelated (i.e. little or no substitution between the runup and the post-announcement premium), so the runup is an added cost to the bidder. This has important implications for assessing the costs of illegal insider trading based on private information about a potential bid.
Author: Fenying Xie
Publisher:
ISBN: 9781374711211
Category :
Languages : en
Pages :
Get Book Here
Book Description
This dissertation, "The Effect of Mergers and Tender Offers on Stockholder Returns: the Case of Hong Kong" by Fenying, Xie, 謝奮穎, was obtained from The University of Hong Kong (Pokfulam, Hong Kong) and is being sold pursuant to Creative Commons: Attribution 3.0 Hong Kong License. The content of this dissertation has not been altered in any way. We have altered the formatting in order to facilitate the ease of printing and reading of the dissertation. All rights not granted by the above license are retained by the author. Abstract: Abstract of thesis entitled The Effect of Mergers and Tender Offers on Stockholder Returns: The Case of Hong Kong submitted by XIE Fenying for the degree of Master of Philosophy at the University of Hong Kong in February 2002 Despite the constant growth of corporate takeovers in Hong Kong during the past few years, little research has been carried out on mergers and acquisitions (M&As) in the region. This study explores M&As in the Hong Kong market with particular emphasis on the examination of abnormal returns around merger and tender offer announcements from 1986 to 1998. In addition to qualitative analysis, quantitative analysis with event study and cross-sectional regression techniques is included. Compared with takeovers in other developed equity markets such as the U.S., mergers and tender offers in Hong Kong exhibit some peculiar differences. The market resistance of takeovers is strong and hostile bids are rare. Ownership of most companies is highly concentrated, often within a family group, and it is closely tied with corporate control power. Capital gains in Hong Kong are not taxed. The regulatory framework for takeovers is also different, e.g. the takeover trigger point is relatively high with 35 percent in the examination period. Under this specific market background, it is found that stockholders of target firms benefit from mergers and tender offers, while stockholders of bidding firms lose. Using market model estimation, on announcement day, merger and tender offer targets both earn statistically significant positive abnormal returns of more than 3%; tender offer bidders show a significant negative abnormal return of -2.18%, whilst merger bidders obtain a positive but insignificant abnormal return of 2.15%. The cumulative average abnormal return over the entire event window, i.e. twenty days before to twenty days after the announcement date, is 8.58% for merger targets (Z statistic = 1.57), 13.75% (Z statistic = 4.97) for tender offer targets, 12.95% for total targets (Z statistic = 5.19), -5.78% (Z statistic = -1.01) for merger bidders, -8.12% (Z statistic = -2.20) for tender offer bidders, and -6.84% (Z statistic = -2.22) for total bidders. The results of market-adjusted-return models are similar. Cross-sectional analysis of the effects of various factors on cumulative abnormal returns over day -1 and day 0 is conducted for targets and bidders respectively. The results indicate that the abnormal performances of targets and bidders are independent of firm size and the mode of acquisition (i.e. merger or tender offer). The cumulative abnormal returns of targets display a strong negative association with pure cash payment and a strong positive relation with their bidders' pretakeover toehold investment. However, there is no evidence that method of financing and toehold explain variation in abnormal performance of bidding firms. Vertical acquisitions are positively related to the two-day cumulative abnormal returns at a less significant level for both target and bidding firms. DOI: 10.5353/th_b2975020 Subjects: Tender offers (Securities) - China - Hong Kong Consolidation and merger of corporations - China - Hong Kong Rate of return - China - Hong Kong Stockholders - China - Hong Kong
Author: Sascha Kolaric
Publisher: Corporate Finance and Governance
ISBN: 9783631670545
Category : Bank mergers
Languages : en
Pages : 0
Get Book Here
Book Description
This book offers a comprehensive analysis of the shareholder wealth effects of the financial sector consolidation in the Asia-Pacific region and its impact on the acquirer's cost of debt. The capital market reactions of the institutions directly involved in the M&A and their rivals are examined to evaluate the success of the consolidation process.
