scholarly journals Prevaluating Technical Efficiency Gains From Potential Mergers and Acquisitions in China’s Coal Industry

SAGE Open ◽  
2020 ◽  
Vol 10 (3) ◽  
pp. 215824402093953
Author(s):  
Yan He ◽  
Yung-ho Chiu ◽  
Bin Zhang
Keyword(s):  
Economic Growth ◽  
Mergers And Acquisitions ◽  
Coal Industry ◽  
Final Decision ◽  
Industrial Concentration ◽  
Efficiency Gains ◽  
Financial Reports ◽  
Empirical Results ◽  
Cross Listing ◽  
Gains Model

With the slowdown of its economic growth, China’s domestic coal industry is facing more and more serious overcapacity. Multiple government departments have jointly proposed that the coal industry should undergo mergers and reorganization to ease this overcapacity, enhance industrial concentration, and optimize production layout. This study thus combines the resample slacks-based measure (SBM) model and potential merger gains model to pre-evaluate the gains from potential mergers and acquisitions (M&As) before making any final decision about them. With a focus on prevaluating efficiency gains before potential M&As instead of efficiency gains after them, we take China’s listed companies in the coal mining and washing industry as the research sample. The data used to evaluate the efficiency from potential M&As come from their annual financial reports from 2013 to 2016. Empirical results show that some mergers of listed coal companies lead to improved efficiency, but not all mergers can bring efficiency improvements. We also find that the most efficient companies are not necessarily the best M&A targets, and that companies suitable for M&As are those in the stage of expansion. In addition, the empirical results confirm that combinations between large coal companies and between cross-listing companies are more efficient.

Human Capital Accumulation and Resource Abundance

2011 ◽  
pp. 66-77
Author(s):  
O. Vasilieva
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Capital Accumulation ◽  
Relevant Literature ◽  
Harmful Effect ◽  
Human Capital Accumulation ◽  
Resource Abundance ◽  
Empirical Results ◽  
Theoretical Predictions ◽  
Crowd Out

Does resource abundance positively affect human capital accumulation? Or, alternatively, does it «crowd out» the human capital leading to the deterioration of economic growth? The paper gives an overview of the relevant literature and discusses both theoretical and empirical results obtained regarding the connection between human capital accumulation and resource abundance. It shows that despite some theoretical predictions about the harmful effect of resource abundance on human capital accumulation, unambiguous evidence of such impact that would be robust with respect to the change of resource abundance parameter has not been obtained yet.

Divestiture and Its Market Reaction in a Consolidating Industry: The Global Brewing Industry

2021 ◽  
pp. 1-21
Author(s):  
Ludwig Erl ◽  
Florian Kiesel
Keyword(s):  
Mergers And Acquisitions ◽  
Capital Market ◽  
Market Reaction ◽  
Market Performance ◽  
Abnormal Returns ◽  
Brewing Industry ◽  
Efficiency Gains ◽  
Market Values ◽  
Jel Classifications ◽  
The Capital Market

Abstract This study provides a perspective on the market performance of divestitures in the global brewing industry. In 2018, the five largest players accounted for 60% of the global beer volume. We analyze to what extent the capital market values divestitures in an industry where players usually seek efficiency gains and growth through mergers and acquisitions. Based on a sample of 61 divestiture intent announcements in the period from 1999–2018, this study shows that publicly listed brewing groups experience significant positive abnormal returns of about 1.4%. We measure the influential effect of success determinants concerning the underlying industry, the divested business, the divestiture structure, and the divestor itself. (JEL Classifications: G14, G34, L25, Q14)

scholarly journals Revisit coal consumption, CO2 emissions and economic growth nexus in China and India using a newly developed bootstrap ARDL bound test

2017 ◽  
Vol 36 (3) ◽  
pp. 450-463 ◽  
Author(s):  
Feng-Li Lin ◽  
Roula Inglesi-Lotz ◽  
Tsangyao Chang
Keyword(s):  
Economic Growth ◽  
Granger Causality ◽  
Policy Implications ◽  
Coal Consumption ◽  
Causality Test ◽  
Ardl Model ◽  
Empirical Results ◽  
China And India ◽  
The Government ◽  
Bound Test

This study revisits coal consumption, CO2 emissions and economic growth nexus for both China and India using a newly developed Bootstrap ARDL model over the period of 1969–2015. Empirical results indicate no long-run relationship among these three variables for both China and India, and Granger causality test based on Bootstrap ARDL model indicates a feedback between coal consumption and economic growth, between economic growth and CO2 emissions and between coal consumption and CO2 emissions in China. However, we find a one-way Granger causality running from coal consumption to economic growth and the feedback hypothesis is confirmed between economic growth and CO2 emissions and between coal consumption and CO2 emissions in India. The coefficients signal that coal consumption is an important factor towards the promotion economic growth in both China and India. For China, higher economic growth reduces CO2 emissions, while for India, it further increases CO2 emissions. Our empirical results have important policy implications for the government conducting effective energy polices to promote economic growth in both China and India.

A Study on the Impact of Industrial Concentration on the Economic Growth Based on the Analysis of Gini Coefficient of the Construction Regions

2010 ◽  
Vol 29-32 ◽  
pp. 2703-2708
Author(s):  
Xiao Zheng ◽  
Zhen Ning Liu
Keyword(s):  
Economic Growth ◽  
Regression Analysis ◽  
Construction Industry ◽  
Gini Coefficient ◽  
Local Communities ◽  
Local Economy ◽  
Industrial Concentration ◽  
Southeast China ◽  
The Impact

This paper reveals the concentration status of the construction industry in the 8 provinces of southeast China, its impact on the local communities, and proposes a tentative plan to stimulate local economy through industrial concentration based on the measurement and calculation of Gini coefficient in the 8 provinces and regression analysis of their population and output of steel and concrete.

Questioning the effect of the real exchange rate on growth: new evidence from Mexico

2021 ◽  
Vol 9 (2) ◽  
pp. 253-269
Author(s):  
Florencia Médici ◽  
Augustín Mario ◽  
Alejandro Fiorito
Keyword(s):  
Economic Growth ◽  
Exchange Rate ◽  
Real Exchange Rate ◽  
Public Expenditure ◽  
Institutional Arrangements ◽  
Relative Price ◽  
The Real ◽  
Empirical Results ◽  
New Evidence

This study provides new evidence showing that the real exchange rate (RER) does not play an important role in the growth of Mexican GDP. Economic growth is not an automatically predetermined result of relative price correction, and it is important to consider distinctive aspects of national institutional arrangements (fiscal and monetary, for example) for understanding theoretical causality of demand. The empirical results show public expenditure is an overlooked variable in regressions where the exchange rate affects product growth. After incorporating public expenditure, the RER impact on growth becomes insignificant. For its part, public expenditure has a positive and significant effect on GDP in the long term. The RER does not lead to greater GDP since exports are not stimulated through price.

M&A vs. Greenfield

2018 ◽  
pp. 169-185
Author(s):  
Sana Moid
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Mergers And Acquisitions ◽  
Empirical Evidence ◽  
International Market ◽  
Time Effect ◽  
Entry Modes ◽  
Host Countries ◽  
Bidirectional Relationship ◽  
The Right

The chapter has raised two critically important questions. First, is the M&A boom a one-time effect of privatization, or is it likely to be followed by a rise in Greenfield investment? Second, do these two types of FDI mode have different macroeconomic consequences in terms of aggregate investment and growth? The main purpose of this chapter is to analyze the two entry modes, mergers and acquisitions and Greenfield investment, specifically, and to present a comparative view of the same and how it leads to the economic growth of a nation. It is concluded that one should choose the right mode according to the different situation about the firms in the international market. The present chapter also concludes that Greenfields and M&As do have a positive homogenous effect on growth. Additionally, the enhancement of human capital is an important condition for the host countries to derive the maximum benefits from Greenfields and M&As. Also, there is empirical evidence of a two-way linkage between FDI and growth. However, the bidirectional relationship exists only for the M&A's growth nexus.

scholarly journals Financial Depth and Efficiency, and Economic Growth Nexus in Saudi Arabia and Oman

2018 ◽  
Vol 11 (2) ◽  
pp. 105-112
Author(s):  
Abdullah Saeed ◽  
Shayem Saleh
Keyword(s):  
Economic Growth ◽  
Saudi Arabia ◽  
Panel Data ◽  
Causal Relation ◽  
Policy Implications ◽  
Financial Deepening ◽  
Empirical Results ◽  
Financial Depth ◽  
Detrimental Impact

AbstractThis paper aims to examine the financial depth and efficiency and economic growth nexus in the context of Saudi Arabia and Oman. In particular, this paper addresses on how financial depth and efficiency relate to economic growth and the causal relation between financial depth and efficiency and the economic growth in Saudi Arabia and Oman. Methodological wise, this study employs a panel data of Saudi Arabia and Oman over the period of 1990 - 2015 and uses the determination of line of best to analyze the causal relations. The empirical results show that financial deepening have desirable effects on the economic growth in Oman, while increasing financial depth and efficiency has detrimental impact to economic growth of Saudi Arabia. Based on these empirical facts, we conclude that the financial deepening in Saudi Arabia is not an economic prioritized strategy, but financial deepening is an economic prioritized strategy in Oman. Two main policy implications are reached.

Bank caution will make Russian firms draw on own funds

2017 ◽  
Keyword(s):  
Economic Growth ◽  
Mergers And Acquisitions ◽  
Economic Recovery ◽  
Productive Capacity ◽  
Fixed Asset ◽  
Content Type ◽  
Domestic Capital ◽  
Investment Rates ◽  
Growth Prospects

Subject Financing sources for Russian companies. Significance Low investment rates in the last three years have led to substantial fixed asset deterioration. Russian companies are trying to make better use of existing assets instead of renewing productive capacity, and the main source of investment is their own funds. Impacts As EU and US sanctions persist, Russia will strive to boost domestic capital markets. Prolonged low investment will restrict economic growth prospects for the medium-to-long term. Insufficient investment will limit productivity and undermine product competitiveness. Signs of economic recovery may boost mergers and acquisitions.

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