Shareholder Wealth Effects and Corporate Name Change: Evidence from Malaysia

2004 ◽  
Author(s):  
Yusuf Karbhari ◽  
Zulkarnain Muhamad Sori ◽  
Shamsher Mohamad
Keyword(s):  
Shareholder Wealth ◽  
Wealth Effects ◽  
Name Change ◽  
Corporate Name Change

scholarly journals Shareholder wealth effects and corporate name change: Evidence from Malaysia

2004 ◽  
Vol 2 (1) ◽  
pp. 38-49 ◽  
Author(s):  
Yusuf Karbhari ◽  
Zulqarnain Mohamad Sori ◽  
Shamsher Mohamad
Keyword(s):  
Abnormal Returns ◽  
Shareholder Wealth ◽  
Wealth Effects ◽  
Name Change ◽  
Announcement Date ◽  
Corporate Name Change ◽  
Study Methodology ◽  
Shareholder Wealth Effect ◽  
Name Changes ◽  
Event Study Methodology

This study seeks to evaluate the shareholder wealth effect of corporate name change by Malaysian listed companies. Our sample comprises both failed and non-failed Malaysian companies and standard event study methodology is employed. Our results indicate that corporate name changes have no impact on shareholder wealth unless the announcement is accompanied with news of approved corporate restructuring by Malaysian regulatory authorities. In addition, extraordinary abnormal returns were found on the announcement day for the failed companies group whilst, the sub-sample of non-failed companies experienced a significant low negative abnormal return around the announcement date indicating disapproval of cosmetic name changes. Investors in Malaysia are generally cautious about receiving news of a corporate name change. The study also suggests that the market cannot be fooled by mere name change; such a change must be backed by serious efforts towards recovery.

scholarly journals The Wealth Effects of Proactive and Reactive Corporate Name Change Strategies

1970 ◽  
Vol 10 (1) ◽  
pp. 41-50
Author(s):  
Nils-Erik Aaby ◽  
Thomas Zwirlein ◽  
Lisa Borstadt
Keyword(s):  
Wealth Effects ◽  
Change Strategies ◽  
Name Change ◽  
Corporate Name Change

Further analysis of mergers and shareholder wealth effects in European banking

2005 ◽  
Vol 15 (1) ◽  
pp. 13-30 ◽  
Author(s):  
Ahmad Ismail ◽  
Ian Davidson *
Keyword(s):  
Shareholder Wealth ◽  
Wealth Effects ◽  
European Banking

Successful Cross-border Acquisitions of Latin American Financial Institutions: Identifying Success Factors

2012 ◽  
Vol 4 (3) ◽  
pp. 347-367 ◽  
Author(s):  
C. Bülent Aybar ◽  
Wendy M. Jeffus ◽  
John C. Edmunds
Keyword(s):  
Latin American ◽  
Financial Institutions ◽  
Success Factors ◽  
Market Access ◽  
Shareholder Wealth ◽  
Wealth Effects ◽  
Cross Sectional ◽  
Foreign Companies ◽  
Study Methodology ◽  
Insight Into

This article examines the shareholder wealth effects for foreign companies that announce acquisitions of financial institutions in Latin America. We examine data for 636 transactions for the period 1985–2009. We employ event study methodology coupled with a cross-sectional regression to determine if shareholders of the acquiring firm receive positive returns. The results indicate that acquirers receive positive returns when the acquisition involves a target bank in a market with low market access, high market risk, and greater control post acquisition. These findings offer improvements on previously examined variables and provide insight into a market not sufficiently examined in prior research.

scholarly journals Discount and premium awards in the context of pre-existing ESOP conditions

2006 ◽  
Vol 3 (2) ◽  
pp. 54-67
Author(s):  
Bruce A. Rosser ◽  
Jean M. Canil
Keyword(s):  
Stock Option ◽  
Shareholder Wealth ◽  
Wealth Effects ◽  
Executive Stock Option ◽  
Major Implication ◽  
Incentive Problems ◽  
The Cost

This study examines interactions between pre-award ESOP restrictive conditions and award discounts/premiums that characterized executive stock option awards in Australia from the mid-1980s to 2000. Shareholder wealth effects at award suggest that (i) shareholders generally do not gain from offering discounts because associated value increments do not exceed the cost of the discount, (ii) premium awards coupled with exercise restrictions appear to be used to ameliorate the risk of CEO opportunism associated with irregular awards, and (iii) shareholders suffer a wealth decrement when premium awards are used to ameliorate the disinvestment incentive of inferior CEO dilution protection. The second of these findings implies risk of CEO opportunism. A major implication is that award discounts/premiums are used to modify the conditions of pre-existing ESOPs that presumably are dated and no longer optimal for addressing current incentive problems. Analyses of the optimality of award discounts/premiums should take this into account.

Signaling Power of Corporate Name Change: A Case of Indian Firms

2017 ◽  
Vol 18 (3) ◽  
pp. 173-181 ◽  
Author(s):  
Neelam Rani ◽  
Aman Asija
Keyword(s):  
Name Change ◽  
Corporate Name Change

Bank mergers and acquisitions in Greece: the financial crisis and its effect on shareholder wealth

2019 ◽  
Vol 16 (2) ◽  
pp. 273-296 ◽  
Author(s):  
Ioannis Tampakoudis ◽  
Michail Nerantzidis ◽  
Demetres Subeniotis ◽  
Apostolos Soutsas ◽  
Nikolaos Kiosses
Keyword(s):  
Financial Crisis ◽  
Mergers And Acquisitions ◽  
Financial Stability ◽  
Global Financial Crisis ◽  
Shareholder Wealth ◽  
Conclusive Evidence ◽  
Wealth Effects ◽  
Bank Mergers ◽  
Content Type ◽  
The Impact

Purpose The purpose of this paper is to investigate the wealth implications of bank mergers and acquisitions (M&As) in the unique Greek setting given the triple crisis phenomenon – banking, sovereign debt and economic crises – that prevailed after the global financial crisis. Design/methodology/approach The study examines bank M&As and bank transactions over the period from 1997 to 2018, as well as government-assisted M&As during the crisis. The wealth effects of bank M&As are assessed using both univariate and multivariate frameworks. Findings Findings show a neutral crisis effect on the valuation of M&As upon their announcement. However, the authors provide conclusive evidence that M&A completions are value-destroying events for acquiring banks during the crisis, far worse than in the pre-crisis period. Greek banks also fail to create value from government-assisted mergers. The results suggest that the financial stability and the prevention of further deepening of the Greek crisis with possible contagion effects were achieved at the expense of shareholders and taxpayers. Originality/value To the authors’ knowledge, this is the first study that examines the impact of the Greek triple crisis on the wealth effects of bank M&As and bank transactions. Also, the study provides first evidence with regard to the economic impact of government-assisted M&As in the European context.

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