Mergers and Acquisitions and Corporate Performance: A Critical Review

2015 ◽  
Vol 5 (1) ◽  
Author(s):  
Madhumita Dasgupta
Keyword(s):  
Mergers And Acquisitions ◽  
Critical Review ◽  
Corporate Performance

IMPACT OF MERGERS AND ACQUISITIONS ON THE CORPORATE PERFORMANCE IN FMCG SECTOR OF INDIA

2019 ◽  
Vol 14 (2) ◽  
pp. 22
Author(s):  
AFZAL SHAH BISMA ◽  
AHMAD BUTT KHURSHEED ◽  
◽  
Keyword(s):  
Mergers And Acquisitions ◽  
Corporate Performance

scholarly journals The Impact Of Performance Expectation Gap On Corporate Strategic Change—Evidence from Listed Companies in the IT Industry

2021 ◽  
Vol 14 (11) ◽  
pp. 46
Author(s):  
Luyao Huangfu ◽  
Fang Wang ◽  
Dan Liu ◽  
Nan Wu
Keyword(s):  
Mergers And Acquisitions ◽  
Corporate Performance ◽  
Strategic Change ◽  
Listed Companies ◽  
Management Control ◽  
Private Benefits ◽  
Performance Expectation ◽  
Expectation Gap ◽  
Corporate Mergers And Acquisitions ◽  
Equity Incentive

Based on the panel data of Chinese listed companies in the information technology industry from 2007 to 2018, this paper uses a fixed-effect model to study the relationship between corporate performance expectation gap and strategic change and analyzes the moderating effect of private benefits of management control and equity incentive. It is found that the greater the gap between corporate performance expectations is, the lower the frequency of corporate mergers and acquisitions is, and the higher the frequency of corporate asset divestment is. Further research finds that private benefits of management control weaken the positive correlation between corporate performance expectation gap and asset stripping frequency. Equity incentive strengthens the negative correlation between corporate performance expectation gap and corporate mergers and acquisitions frequency, and the positive correlation between corporate performance expectation gap and corporate asset stripping frequency. Based on this, when enterprises carry out strategic change, enterprises should choose the direction of strategic change according to the degree of performance expectation gap, and promote the effective realization of strategic change by improving the governance of the board of directors and optimizing the management incentive mechanism.

The Effects of Mergers and Acquisitions on Taiwanese Corporations

2000 ◽  
Vol 03 (02) ◽  
pp. 183-199 ◽  
Author(s):  
Tsung-Ming Yeh ◽  
Yasuo Hoshino
Keyword(s):  
Stock Market ◽  
Mergers And Acquisitions ◽  
Stock Returns ◽  
Stock Prices ◽  
Corporate Performance ◽  
Accounting Performance ◽  
Acquiring Firms ◽  
The Impact

This paper investigated the impact of M&As on both the acquiring firms' stock prices and corporate performance by using evidence from 20 Taiwanese corporations. Our data suggest that the accounting performance of Taiwanese acquiring firms failed to meet the stock market's expectation of future improvements in the operations of the acquiring firms. The stock market reacted in favor of the announcements of M&As, however, there is a downward change in the acquiring firms' profitability from premerger to postmerger periods. However we do not find any significant correlation between stock returns and the change in accounting performance, which is different from some previous studies.

scholarly journals The Comparative of Corporate Performance Analysis Between Pre and Post Mergers and Acquisitions Companies in the Indonesia Manufacturing Industries Listed on The Stock Exchange in 2007-2012

2016 ◽  
Vol 4 (1) ◽  
pp. 97-108
Author(s):  
Rosiwarna Anwar ◽  
Fenny Chintya Debby
Keyword(s):  
Performance Analysis ◽  
Mergers And Acquisitions ◽  
Hypothesis Testing ◽  
Corporate Performance ◽  
Stock Exchange ◽  
Manufacturing Industries ◽  
Return On Equity ◽  
Operating Profit ◽  
Return On Capital ◽  
Paired T Test

This study aims to analyze the performance of companies doing mergers and acquisitions that proxies by Return on Capital Employed (ROCE), Return on Equity (ROE), Operating Profit Margin (OPM), NetProfit Margin (NPM), EPS (Earnings PerShare), PER (Price Earning Ratio). This studyuses the sample based on 90 companies in Indonesia manufacturing industries forthe period from 2007 to 2012.Hypothesis testing is done by using the paired t test. We had documented the results of the study findings ofthe performance of the company which showed the distinction between two conditions, pre mergers and acquisitions when compared with post mergers and acquisitions of companies. However, many out of the results are not statistically significant. Keywords: Mergers & Acquisitions; Corporate Performance; Financial Ratios.

The impact of mergers and acquisitions on corporate performance in India

2008 ◽  
Vol 46 (10) ◽  
pp. 1531-1543 ◽  
Author(s):  
Satish Kumar ◽  
Lalit K. Bansal
Keyword(s):  
Mergers And Acquisitions ◽  
Corporate Performance ◽  
The Impact

scholarly journals A critical review of the relationship between human capital management and corporate performance

2012 ◽  
Vol 9 (3) ◽  
pp. 409-427
Author(s):  
Pina Puntillo
Keyword(s):  
Human Capital ◽  
Empirical Evidence ◽  
Intellectual Capital ◽  
Critical Review ◽  
Management Practices ◽  
Corporate Performance ◽  
Capital Management ◽  
Human Capital Management ◽  
The Impact ◽  
The Relationship

The Human Capital (HC) is considered a strategic resource intangible for companies whose main features are the ability to be self-generated is to be subjected to the risk of a sudden evaporation in the presence of inadequate management practices. After analyzing the concept of human capital as a subset of the most important intellectual capital, research focuses on the determinants of human capital management on corporate performance. Specifically we will look at the literature that has produced empirical evidence on the impact that the practices of management of human capital, the behaviors of the staff, the remuneration and the formation of the staff have on performance.

scholarly journals Corporate Governance, Board Gender Diversity And Corporate Performance: A Critical Review Of Literature

2016 ◽  
Vol 12 (7) ◽  
pp. 221 ◽  
Author(s):  
Duncan M. Wagana ◽  
Joyce D. Nzulwa
Keyword(s):  
Corporate Governance ◽  
Critical Review ◽  
Corporate Performance ◽  
Gender Diversity ◽  
Theory And Practice ◽  
Empirical Literature ◽  
Review Of Literature ◽  
Policy Theory ◽  
Board Gender Diversity ◽  
The Relationship

This paper aims to critically review the existing literature on the relationship between the Corporate Governance aspect of board gender diversity, and its influence on corporate performance. This review specifically evaluates theoretical and empirical literature related to board gender diversity and corporate performance with an aim of establishing areas of gaps for further research. In particular the paper identifies some of the important theoretical, operational, measurement, contextual and methodological drawbacks in previous researches and literature that restrict generalization of results to particular contexts, sectors and larger populations. Additionally, several research avenues are proposed for in- depth understanding of the relationship between board gender diversity and corporate performance. Finally, the implication of the study on policy, theory and practice are discussed.

scholarly journals A conceptual model for evaluation of synergies in mergers and acquisitions: A critical review of the literature

2003 ◽  
Vol 34 (1) ◽  
pp. 27-38 ◽  
Author(s):  
G. V.M. Kode ◽  
J. C. Ford ◽  
M. M. Sutherland
Keyword(s):  
Best Practices ◽  
Mergers And Acquisitions ◽  
Value Creation ◽  
Critical Review ◽  
Small Proportion ◽  
Model Building ◽  
Review Of The Literature ◽  
Executive Management ◽  
Creation Process ◽  
Value Creation Process

The vast majority of mergers and acquisitions rely on synergies in the value creation process. Only a small proportion of mergers and acquisitions are undertaken for non-synergistic reasons. Many mergers and acquisitions never achieve the pre-deal successes that are used to motivate and justify the payment of huge premiums over the stand-alone value of the target companies. Because synergies are used to justify the payment of premiums, executive management, need to fully understand how to evaluate synergies.This model building exercise has enabled the development of an integrated model for the evaluation of synergies that uses the best practices identified from the writings of the authors under review. The model, therefore, provides academics and executive management with a framework for better understanding synergies and some techniques to ensure the realisation of productive synergies in the implementation of mergers and acquisitions.

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