Does Operating Performance Really Improve Following Corporate Acquisitions?

Does Operating Performance Really Improve Following Corporate Acquisitions?
Author: Aloke Ghosh
Publisher:
Total Pages: 0
Release: 2001
Genre:
ISBN:

This article examines the impact of the method of payment used in acquisitions on the acquiring firms' post-merger operating cash flow and some of its components cash inflow from sales, cash payments to suppliers, and payments for other operating expenses. I find that acquiring firms that pay with cash are able to increase their post-merger cash flow significantly, relative to peer firms, primarily through improved asset turnover (sales per dollar of assets). The post-merger cash flow of stock acquisitions, however, declines significantly. Although stock acquisitions are able to implement effective cost-cutting strategies, the decline in asset turnover outweighs benefits from cost-cutting strategies.

The Measurement of Operating Performance Following Corporate Acquisitions

The Measurement of Operating Performance Following Corporate Acquisitions
Author: Allan Eberhart
Publisher:
Total Pages:
Release: 2012
Genre:
ISBN:

We examine a sample of 1,175 firms following their acquisition of another firm. Consistent with previous work, we measure the operating performance of these firms in event-time, and find that they experience significantly positive abnormal operating performance subsequent to their acquisition. When we measure their abnormal operating performance in calendar-time, however, we find that our sample firms' abnormal operating performance is insignificant. In short, we find that the standard event-time measures of abnormal operating performance overstate the benefits of corporate acquisitions.

Operating Performance Following Corporate Acquisitions

Operating Performance Following Corporate Acquisitions
Author: Syed Shams
Publisher:
Total Pages: 1
Release: 2014
Genre:
ISBN:

We compare long-run operating performances between acquirers of private targets and acquirers of public targets using samples of Australian acquisitions for the period 2000-2010. The acquirers of private targets realise statistically significant positive abnormal returns during the announcement period of completed acquisitions while acquirers of public targets earn normal returns. However, the operating performance of the former group during the post-acquisition period is not significantly different from that of the latter group. The stock-financed acquisitions are not associated with significant performance improvements irrespective of whether this method of payment is used to finance acquisitions of private or public targets. However, there is evidence to suggest that cash-financed acquisitions of public targets are associated with significant performance improvements while no such performance improvements were evident for cash-financed acquisitions of private targets. The concentrated ownership created through acquisitions of private targets is associated with significant improvement in the long-run operating performance for acquirers. Acquisitions of private targets are also associated with significant performance improvements if they are undertaken by experienced acquirers.

International Mergers and Acquisitions Activity Since 1990

International Mergers and Acquisitions Activity Since 1990
Author: Greg N. Gregoriou
Publisher: Elsevier
Total Pages: 321
Release: 2007-06-29
Genre: Business & Economics
ISBN: 008054732X

It is now a well-know fact that mergers and acquisitions activity comes in waves. The most recent wave, the 5th takeover wave of the 1990s, was characterized by an unprecedented number of corporate restructurings in terms of mergers and acquisitions (M&As), public-to-private transactions, spin-offs and divestitures, and leveraged recapitalizations. Following the collapse of the stock market in March 2000, M&A activity slumped dramatically, but this pause ended in the second half of 2004 when takeover deals occurred again quite frequently. Indeed, some observers wonder whether the 6th takeover wave has started. The takeover wave in the 1990s was particularly remarkable in terms of size and geographical dispersion. For the first time, Continental European firms were as eager to participate as their US and UK counterparts, and M&A activity in Europe hit levels similar to those experienced in the US. Due to its financial impact and the unprecedented activity in Continental Europe, the 5th takeover wave of the 1990s and recent takeover activity (in biotech, utilities, pharmaceuticals) have triggered a great deal of interesting academic research. This volume brings together a selection of insightful papers. An impressive group of international authors address the following themes: takeover regulation; the cyclical pattern of the M&A markets and probable causes and effects; methods to determine the performance of success of M&A actions; cross border deals; means of payment and its effects; studies of hostile bids; high leverage takeovers and delistings.*A selection of the best and latest quantitative research on M&A activity worldwide*Impressive collection of international authors*Provides important insights and implications for practitioners

Does Corporate Performance Improve After Mergers? (Classic Reprint)

Does Corporate Performance Improve After Mergers? (Classic Reprint)
Author: Paul M. Healy
Publisher:
Total Pages: 48
Release: 2015-08-05
Genre: Business & Economics
ISBN: 9781332258529

Excerpt from Does Corporate Performance Improve After Mergers? We thank Robin Cooper, George Foster, Michael Jensen, Bob Kaplan, Richard Leftwich, Mark Wolfson, Karen Wruck, and seminar participants at Baruch College, Carnegie Mellon, Columbia, Dartmouth, Duke, Federal Reserve Bank Washington D.C.), Harvard, Michigan, MIT, NYU, Rochester, Stanford, USC, and U.S. Department of Justice for helpful comments on earlier drafts, Chris Fox and Ken Hao for research assistance, and the International Financial Services Center at MIT and the Division of Research at HBS for financial support. About the Publisher Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.

Does Corporate Performance Improve After Mergers?

Does Corporate Performance Improve After Mergers?
Author: Paul M. Healy
Publisher: Sagwan Press
Total Pages: 50
Release: 2018-02-08
Genre: Business & Economics
ISBN: 9781377069647

This work has been selected by scholars as being culturally important, and is part of the knowledge base of civilization as we know it. This work was reproduced from the original artifact, and remains as true to the original work as possible. Therefore, you will see the original copyright references, library stamps (as most of these works have been housed in our most important libraries around the world), and other notations in the work. This work is in the public domain in the United States of America, and possibly other nations. Within the United States, you may freely copy and distribute this work, as no entity (individual or corporate) has a copyright on the body of the work. As a reproduction of a historical artifact, this work may contain missing or blurred pages, poor pictures, errant marks, etc. Scholars believe, and we concur, that this work is important enough to be preserved, reproduced, and made generally available to the public. We appreciate your support of the preservation process, and thank you for being an important part of keeping this knowledge alive and relevant.

Corporate Takeovers

Corporate Takeovers
Author: Alan J. Auerbach
Publisher: University of Chicago Press
Total Pages: 354
Release: 2013-12-30
Genre: Business & Economics
ISBN: 0226032167

The takeover boom that began in the mid-1980s has exhibited many phenomena not previously observed, such as hostile takeovers and takeover defenses, a widespread use of cash as a means of payment for targeted firms, and the acquisitions of companies ranking among the largest in the country. With the aim of more fully understanding the implications of such occurances, contributors to this volume consider a broad range of issues as they analyze mergers and acquisitions and study the takeoveer process itself.

Does Corporate Performance Improve after Mergers?

Does Corporate Performance Improve after Mergers?
Author: Paul M. Healy
Publisher:
Total Pages: 42
Release: 2010
Genre:
ISBN:

We examine the post-acquisition operating performance of merged firms using a sample of the 50 largest mergers between U.S. public industrial firms completed in the period 1979 to 1983. The results indicate that merged firms have significant improvement in asset productivity relative to their industries after the merger, leading to higher post-merger operating cash flow returns. Sample firms maintain their capital expenditure and Ramp;D rates relative to their industries after the merger, indicating that merged firms do not reduce their long-term investments. There is a strong positive relation between postmerger increases in operating cash flows and abnormal stock returns at merger announcements, indicating that expectations of economic improvements underlie the equity revaluations of the merging firms.

Mergers A Complete Guide - 2020 Edition

Mergers A Complete Guide - 2020 Edition
Author: Gerardus Blokdyk
Publisher: 5starcooks
Total Pages: 312
Release: 2020-02-20
Genre:
ISBN: 9781867336143

What should be integrated in a merger? Does operating performance really improve following corporate acquisitions? Is your organization contemplating mergers or acquisitions that would require integration of disparate IT systems? Are mergers/acquisitions completely rational decisions from the perspective of adding shareholder value? What is the best approach to managing the integration process? Defining, designing, creating, and implementing a process to solve a challenge or meet an objective is the most valuable role... In EVERY group, company, organization and department. Unless you are talking a one-time, single-use project, there should be a process. Whether that process is managed and implemented by humans, AI, or a combination of the two, it needs to be designed by someone with a complex enough perspective to ask the right questions. Someone capable of asking the right questions and step back and say, 'What are we really trying to accomplish here? And is there a different way to look at it?' This Self-Assessment empowers people to do just that - whether their title is entrepreneur, manager, consultant, (Vice-)President, CxO etc... - they are the people who rule the future. They are the person who asks the right questions to make Mergers investments work better. This Mergers All-Inclusive Self-Assessment enables You to be that person. All the tools you need to an in-depth Mergers Self-Assessment. Featuring 992 new and updated case-based questions, organized into seven core areas of process design, this Self-Assessment will help you identify areas in which Mergers improvements can be made. In using the questions you will be better able to: - diagnose Mergers projects, initiatives, organizations, businesses and processes using accepted diagnostic standards and practices - implement evidence-based best practice strategies aligned with overall goals - integrate recent advances in Mergers and process design strategies into practice according to best practice guidelines Using a Self-Assessment tool known as the Mergers Scorecard, you will develop a clear picture of which Mergers areas need attention. Your purchase includes access details to the Mergers self-assessment dashboard download which gives you your dynamically prioritized projects-ready tool and shows your organization exactly what to do next. You will receive the following contents with New and Updated specific criteria: - The latest quick edition of the book in PDF - The latest complete edition of the book in PDF, which criteria correspond to the criteria in... - The Self-Assessment Excel Dashboard - Example pre-filled Self-Assessment Excel Dashboard to get familiar with results generation - In-depth and specific Mergers Checklists - Project management checklists and templates to assist with implementation INCLUDES LIFETIME SELF ASSESSMENT UPDATES Every self assessment comes with Lifetime Updates and Lifetime Free Updated Books. Lifetime Updates is an industry-first feature which allows you to receive verified self assessment updates, ensuring you always have the most accurate information at your fingertips.

An Empirical Study of Target Firms' Operating Performance After Corporate Acquisitions: Evidence from the Listed Companies in the Stock Exchange of Thailand

An Empirical Study of Target Firms' Operating Performance After Corporate Acquisitions: Evidence from the Listed Companies in the Stock Exchange of Thailand
Author: Arthit Noicharoen
Publisher:
Total Pages: 194
Release: 2006
Genre: Consolidation and merger of corporations
ISBN: 9781109857092

The problem. This study examined the impact of acquisitions on target firms in the Thailand stock exchange market during the 10-year period 1995 to 2004. This study focused on three specific aspects of the impact of acquisitions: (a) to examine the short-term impact of acquisitions during the acquisition announcement by looking at stock market reaction, (b) to examine the long-term impact of acquisitions by looking at operating performance of target firms, and (c) to investigate the relationship between short-term performance of target firms toward acquisition announcement and long-term operating performance of target firms during the post-acquisition period.