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Dissertation about mergers and acquisitions

According to Dissertation about mergers and acquisitions et al the improvement in the management efficiency is a result of the two aspects. But, experience shows that the weak link becomes a read more and causes friction between parties. Some of the ways include manipulating shares dissertation about mergers and acquisitions well as stocks and their values. Table 5. Ltd and Dissertation about mergers and acquisitions Reprographics Ltd. Leave a Reply Cancel reply Your email address will not be published. It involves the acquiring of companies on the different stages of production cycle or distribution channel. This is so because, the process of merger and acquisition can heavily affect the benefits derived out of the merger or acquisition. Horizontal Merger: It involves the joining of two companies which are not competing with each other directly. Without his acquistions support and supervision it was not possible to complete the project work. The data was also analyzed and processed using the Microsoft Excel and the E-Views 8. Financial ratios were used for the accounting study while abnormal returns were used for the event study. With respect to this motive, the acquiring company experiences depreciation in its share prices during the announcement or consummation of the dissertagion while the acquired company experiences a gain.






Dissertation about mergers and acquisitions

Master Thesis Finance – A.A. Voesenek – The effects of mergers and acquisitions on firm performance 9 ). The Process theory claims that the decision to merge is driven by the strategic decision process of a firm. However, in practice it is realistic that a decision process is not entirely. Some of the important terms relating to mergers and acquisitions are as follows:Mergers when two or more companies combine. The shareholders of the target firm are adequately compensated for, if the merger is affected. Acquisition when one company acquires another company. The company that is acquired is known as target firm. Feb 06,  · A solid dissertation on mergers and acquisitions depends on a good topic you can write and research thoroughly. If you have the option to select a topic, think about it from different angles. Choose an angle you will be comfortable writing content and have the ability to research it without concerns. The topic idea will lead to a thesis. Historically mergers have occurred between companies that are of a similar size that have had related interests. Acquisitions gravitate towards larger organizations acquiring smaller businesses. The overarching goal behind mergers and acquisitions is to create long-term shareholder value, obtain a larger market share and achieve greater efficiency. This thesis is aimed to empirically investigate the performance impact of frequent acquisitions as an aggressive merger and acquisition (M&A) strategy for an acquiring firm. In literature related to the study of M&A, a common question is whether acquisitions improve the performance of acquirers. Neither theoretical nor empirical. Always include relevant and industry changing acquisitions in your dissertation paper. Also include new or recent business acquisitions in the paper. Lacking a complete understanding of mergers and acquisitions can be your downfall. You will not impress anyone with incorrect or irrelevant material and support in your dissertation. Do your research before you begin your business dissertation or mergers and acquisitions. THESIS -MERGERS AND ACQUISITIONS FINAL TEXT. Kennedy Jr. List of Abbreviations List of Figures List of Tables AbstractThis research study aimed at evaluating the short term abnormal returns earned by the acquiring company's shareholders during the announcement (shareholder approval) of mergers and acquisitions.


Dissertation about mergers and acquisitions




To dissertation about mergers and acquisitions Academia. Skip to main content. By using our site, you agree to our collection of information through the use of cookies. To learn more, view our Privacy Policy. Log In Sign Up. Download Free PDF. Kennedy Jr. Download PDF. A short summary of this paper. List of Abbreviations List of Figures List of Tables AbstractThis research study aimed at evaluating the short term abnormal returns earned by the acquiring company's shareholders during the announcement shareholder approval of mergers and acquisitions.

The study covered the period and to for the accounting study and event study respectively-in the Zambian context. There is no consensus in the abnormal returns earned by the acquiring company's shareholders and empirical evidence provides mixed outcomes.

Hence, the main aim of this study was to evaluate the abnormal returns that were thesis title by the shareholders.

The accounting study and acquisitionz standard Event Study Methodology were used to provide dissertation about mergers and acquisitions descriptive and empirical analysis in terms of profitability and abnormal returns respectively. Financial ratios were used for the accounting study while abnormal returns were used for the event study.

A non-standardized parametric sign test was also employed to test the hypothesis of the study. The results for both the accounting study and the event caquisitions indicated that the merger and acquisition dissertation about mergers and acquisitions enhanced the value of the shareholders.

The accounting study revealed that the profitability was quite low. The evaluation of the event study methodology revealed mixed results during the event period. Most of the abnormal returns were positive with a 0. The stock market efficiency was not tested has it was assumed to be efficient. The study concluded wcquisitions shareholders gained an insignificant abnormal return on the mergerx date. A number of research studies have been conducted on whether mergers and acquisitions increase or destroy the returns of the shareholders and the empirical findings show that mergers and acquisitions acquusitions to appreciate or decrease the returns of the shareholders involved.

Therefore, this chapter mainly contains the introduction and the background to the study, that is, the short-term effects of mergers and acquisitions on the shareholders returns value creation. It also explains the background of Real Estate Investments Zambia REIZ Plc which is the place where the research was diwsertation as well as articulate the problem statement by providing the social need, knowledge gap, and the researcher's intentions.

The research objectives and questions are also incorporated in this chapter as well as the scope, the dissertqtion and purpose, and the disposition of the research study Dissertagion to the StudyMergers and acquisitions have continued to be the fundamental agout term investment options for improving and sustaining the business operations of many companies Flugt Dissertation about mergers and acquisitions et al According to Van Horne et alp.

Self my essay about findings of the short term dissertation about mergers and acquisitions of mergers and acquisitions on shareholders returns points out that mergers and acquisitions create value, even though this is largely evidenced in the shareholders' returns of the acquired company.

Conversely, acquiring companies accrue abnormal returns ranging from When the companies are combined, the abnormal returns range between 1. Thus, the acquiring company's shareholders experiences low or dissertation about mergers and acquisitions returns this web page the acquired company's shareholders experience a significant gain in terms or abnormal returns.

The empirical findings of the research studies that have been conducted on the short term effects of mergers and acquisitions on the shareholders returns in Africa affirms the global empirical findings.

Hence, the empirical findings in Africa supports the global empirical findings, that is, the acquiring company's shareholders earn low or negative returns while the acquired company's shareholders earn positive abnormal returns. During the past two decades, Zambia has experienced quite a substantial number of returns.

This is because early research studies in Zambia such as Chilepa and Kaira only examined mergers and acquisitions from the legal and regulatory dissertation about mergers and acquisitions. The existing Zambian research studies on mergers and acquisitions concentrates on the regulatory framework of the statutory body, that is, the CCPC. In addition, there is no http://carrborocommons.org/writing-an-essay/human-nature-essays.html that has examined the factors which aacquisitions the wealth creation of the company's shareholders during a merger and acquisition http://carrborocommons.org/writing-an-essay/phd-business-doctoral-dissertation.html. Hence, acquositions, mergers and acquisitions raises an important issue which is the impact of mergers and acquisitions on the returns of the shareholders, the overall value of the Some earlier researchers and scholars contend that mergers and acquisitions increase the returns and the efficiency of the xnd due to the fact that after a merger and acquisition transaction, the resources are efficiently and effectively utilized.

Hence, the shareholders' returns increase immediately after the merger and acquisition mergere Kohers et al Conversely, Ahern et al asserts that company managers engage in mergers and acquisitions to increase slayer homework help scope of the company. Thereby their own wages, bonuses, and perks could also be increased. This is usually executed at dissertation about mergers and acquisitions shareholders expense.

Problem StatementRegardless of the slow growth in the number of mergers and acquisitions in Mergsrs, none has been apprehended with certainty on the short term impact of mergers and acquisitions. Studies conducted by most scholars reveal that there is no consensus on the outcomes of mergers and acquisitions in terms of the shareholders returns in a short time horizon.

Some of the studies affirming this development are Flugt Andrade et alKohers et alMulherin et alBecherFranks et aland Jensen et al dissertatoon With this respect, the researcher conducted an evaluation on the short term impact of mergers and acquisitions on the shareholders returns so as to provide evidence as to whether merger and acquisition can be used as an alternative expansion strategy as the dissetation of doing business figure 1.

Research ObjectivesThe general objective:To evaluate whether or not acquiring shareholders gain short term abnormal returns as a result of a merger and acquisition announcement. Specific objectives:i To determine the abnormal returns earned by the shareholders during the merger and acquisition event.

Research Questions Disposition of Chapters Company or Business GrowthCompany or business growth incorporates both the quantitative and qualitative development aspect of the company. Technological and scope growth represent the quantitative increase in capacity utilization according to the phd thesis religion operation production quantitysales, product diversification, size of the resources financial and intellectual dissertation about mergers and acquisitions please click for source, and asset size size in investment.

Nonetheless, company or business growth as an attribute mergera to the quality development of the business elements. It is difficult to express this form of development numerically. But it could be contended with an assumption that this growth aspect shows in the numerical development of a growing business as an attribute, with quality development in a sense, the numerical development have the same results Ibrahim Company or business growth in terms of capacity and the volume of the economic activity of the company or the business is not an easy matter to deal with despite to specify its purpose.

Measurement of the company or business growth is based congratulate, philosophy essay writers something some certain criteria Ibrahim It is naturally established which makes the growth process an extreme aspect for the existence of the business or the company.

Hence, business growth is similar to that of the living organisms. Businesses are pushed to grow for a number of dissertation about mergers and acquisitions. The purpose of the growth of the business or company is to provide development opportunities for the company or business before the competitors as well as help the resistance against.

Consequently, deciding to grow the company is sign of importance of the managers' agency as authorized by the shareholders of the company Bruner It is for this reason that growth strategies are executed by any business regardless of the size or scope of the company, that is, either small, medium, or large companies.

A company can grow by acquiring other companies with its own resources or by combining facilities with other companies. Dissertation about mergers and acquisitions, company growth is divided into organic and inorganic growth Bruner Organic growth refers to the internal company growth that focuses on growth by asset replacement, pursuing and exploitation of the latest technologies, better customer service relationships, innovation of new technologies and products to close up the gap opportunities in the market or industry.

It is a gradual but consistent growth process that is spread over a few years Bruner Conversely, the Bruner further explained that inorganic growth refers to the external growth usually through mergers and acquisitions. Inorganic growth is quick dissertation about mergers and acquisitions allows the immediate usage and click of the acquired assets.

It is also less risky dissertation about mergers and acquisitions it does not usually culminate in the expansion of internal resource activities. Hence, intensive growth strategies, product diversification strategy and the modernization strategy are organic growth models acquisitiojs by the company's or the business' management. Mergers and acquisitions as well as the co-investment strategies such as joint ventures and strategic alliances are inorganic growth models applied and executed by the company's management.

The business growth models are summarized by the figure 2. Figure 2. Business Growth ModelsCo-investment strategy Disxertation and acquisitions strategyIntensive growth strategies Inorganic growth external growth Organic growth internal growth Modernization strategy Product Diversification strategy Sudarsanam further differentiates the terms when he explained dissertation about mergers and acquisitions a merger dissertation about mergers and acquisitions the "process whereby company's link up together to share their human and physical dissertation about mergers and acquisitions as well dissertation about mergers and acquisitions other company resources to attain common objectives with the shareholders retaining their ownership in both colligated companies.

Mergers often lead to the formation of the new company. Similarly, a merger or amalgamation occurs "when there is the joining of business or assets resources between two or more companies that form a dissertation about mergers and acquisitions company" Okwonko Dissertation about mergers and acquisitions, an acquisition is a "process in which one company purchases the stock shares or resources of another company acqusiitions in turn makes shareholders of the acquired company to discontinue owning shares in the company" Sudarsanam, In the same vein, Okwonko describes dissertztion acquisition as a process that occurs when one company purchases or considers a substantial amount of shares Many a times, the company that is being acquired is a small company that ends up being a subsidiary of the company that acquires it.

Hence, an acquisition resembles unfriendly takeovers, in which the acquiring company is larger than the acquired company thus making it an arm's-length deal, while mergers correspond or indicate a friendly way of getting two or more companies together Vishwanath Furthermore, Furse remarks that the getting together of two or more businesses is influenced by a number of factors which makes it to dissertation about mergers and acquisitions a friendly, agreeable, or unwelcome and hostile.

Thus, a merger is an occurrence where two or more previously independent companies get together to make one entity while an acquisition is the purchase of another company or business by one company with the aim of gaining the controlling power of the acquired shares or assets. Classifications of Mergers and AcquisitionsMergers and acquisitions can be classified in to two categories.

The two categories of mergers and acquisitions are the economic and legal standpoints. The economic perspective incorporates three aspects of mergers and acquisitions which are horizontal, vertical, and conglomerate while the legal perspective involves the regulation of mergers and acquisitions by the government or state statutory bodies Weston et al Hence, this research study considers the economic standpoint of mergers and acquisitions so as to probe the economic value gained by the shareholders of the acquiring and acquired company.

Horizontal MergersAccording to Dissertation about mergers and acquisitions et al a horizontal merger is one that occurs between two or more companies operating in the same line of business or in the same industry. Similarly, a horizontal merger is the one that takes place between two companies operating mergerss same business Vishwanath They usually or mostly take place between competitors of the product or companies with the same target market segments, production capacity and production lifecycle of similar product.

An Market structure is grouped in two categories which dissertation about mergers and acquisitions competition and monopoly.

On the competition market structure side, horizontal mergers present danger to the competition in the industry in contrast to the other two economic aspects of mergers and acquisitions Whish A competitive market characterized with conditions such as the number of buyers and sellers, perfect information and same products leads companies to having no influence on the price due to the price taker characteristic of the dissertation about mergers and acquisitions companies of the market products Gaughan This is illustrated in figure 2.

Hence, the companies attain monopolistic characteristics over a certain time horizon and the end result is that competitive markets have lower prices and higher output volumes in contrast to monopolistic markets. This has been summarized in figure 2. If such an industry were to become so concentrated that a monopoly resulted, a lower output volume equal to Q mand a higher price equal to P mwould result.

The end result is that product or service end users would pay higher prices in the monopolized market structure and would have a lower total output volume as depicted in figure 2. The objective of increasing the market share through the monopoly perspective aims at the eradication of the competition in the industry and increasing the profits of the company.

The outcome of the two or more more info merged companies is the monopolistic competitive market with differentiated products thus moving from the competitive category dissertation about mergers and acquisitions the market structure to the monopoly side. The new company can either be monopolistic, oligopolistic or a monopoly depending on the degree of competition it attains in the industry because all the three market structures possess a characteristic qnd producing differentiated products.

Market power also known as the market monopoly power is the ability and willingness of a company to set and maintain its products price above the price of its competitors in the same industry or in the same line of business Gaughan