scholarly journals What Drives the Payment of Higher Merger Premiums?

2009 ◽  
Vol 11 (2) ◽  
pp. 191
Author(s):  
Soegiharto Soegiharto
Keyword(s):  
Main Variable ◽  
Method Of Payment ◽  
Merger Premiums

This study examines whether the premiums paid to targets firms are affected by bidder CEO overconfidence, merger waves, method of payment, industry of merged firms, and capital liquidity. Using merger data for the period spanning from 1991 to 2000, this study finds that CEOs pay less premiums in cash mergers and pay more premiums for mergers undertaken during the year of high capital liquidity. Moreover, the findings also demonstrate that CEOs tend to pay higher merger premiums for mergers that occur during merger waves and in high capital liquidity year. CEOs’ behavior, which is the main variable examined in this study, does not show any significant effect on the premiums paid. This suggests that the effect of CEO overconfidence on the premiums paid may be exaggerated.

The Determinants of Merger Withdrawals’ Abnormal Returns in The Australian Market

2015 ◽  
pp. 89-110 ◽  
Author(s):  
Thuy Nguyen Thu ◽  
Giang Dao Thi Thu ◽  
Hoang Truong Huy
Keyword(s):  
Financial Crisis ◽  
Event Study ◽  
Abnormal Returns ◽  
Market Response ◽  
Crisis Period ◽  
Valuation Effects ◽  
Event Study Method ◽  
Private And Public ◽  
Method Of Payment ◽  
The Impact

This paper examines the abnormal returns in merger withdrawals in Australia, especially distinguishing the market response between private and public targets. We also study the determinants of those abnormal returns, including the method of payment and the impact of financial crisis periods. Using the event study method, we document that in the Australian context, the announced withdrawal of mergers involving private targets creates significantly negative valuation effects in comparison with the valuation effects in withdrawal of mergers involving public targets. We also find that a financial crisis period strongly affects abnormal returns of merger withdrawals. However, the method of payment does not have any impact on the abnormal returns.

PRINCIPLE OF AUTONOMY IN LETTER OF CREDIT: MALAYSIAN PRACTICE

2012 ◽  
Vol 19 (2) ◽  
Author(s):  
Rosmawani Che Hashim ◽  
Ahmad Azam Othman ◽  
Akhtarzaite Abdul Aziz
Keyword(s):  
International Trade ◽  
Significant Role ◽  
Case Law ◽  
Huge Amount ◽  
Letter Of Credit ◽  
Relevant Case ◽  
Method Of Payment ◽  
Almost All

The term letter of credit (LC) is not uncommon in international trade as it is the most frequently used method of payment by seller and buyer in their sales contract. LC serves its significant role by facilitating payment between buyer and seller from different countries, who are always prejudiced towards each other on the issue of payment, especially when the deal involves a huge amount of money. By using LC, the seller and buyer will be represented by their own bankers whose function, among others is to issue an LC for the buyer and pay on presentation of seller’s documents which strictly comply to LC requirements. It is well-known that LC is governed by the principle of autonomy or also referred to as the principle of independence1 which indicates LC, being a contract of payment is totally separate from the underlying sales contract. Banks are concerned with documents only and not with the goods. LC transaction can be governed by the Uniform Custom and Practice for Documentary Credit, known as the UCP through express incorporation which provides the rules relating to LC matters and is adopted in almost all LC transactions. This paper discusses the nature, background and significance of principle of autonomy in LC transaction. In elaborating the provisions on the principle of autonomy in the UCP 600, comparisons between relevant articles in the UCP 500 are highlighted. The discussion also focuses on relevant case law and on the application of the autonomy principle in conventional and Islamic LC. The paper concludes with the finding that Malaysian bankers fully subscribe to the principle of autonomy as outlined by the UCP 600.

Selling to Buy: Asset Sales and Method of Payment in M&As

2015 ◽  
Author(s):  
Christos P. Mavis ◽  
Nathan P. McNamee ◽  
Dimitris Petmezas ◽  
Nickolaos G. Travlos
Keyword(s):  
Asset Sales ◽  
Method Of Payment

scholarly journals Age period cohort analysis of chewing ability in Korea from 2007 to 2018

2021 ◽  
Vol 11 (1) ◽  
Author(s):  
Nam-Hee Kim ◽  
Ichiro Kawachi
Keyword(s):  
Cohort Analysis ◽  
Cohort Effect ◽  
Cohort Effects ◽  
Period Effect ◽  
The Past ◽  
Health And Nutrition ◽  
Period Effects ◽  
Chewing Ability ◽  
Main Variable ◽  
Observation Period

AbstractThere have been marked improvements in oral health in Korea during the past 10 years, including chewing ability. We sought to disentangle age, period, and cohort effects in chewing ability between 2007 and 2018. We analyzed data from the Korea National Health and Nutrition Examination Survey. The main variable was chewing difficulty, which was assessed among participants aged 20 years and older. APC analysis revealed three trends in chewing difficulty: (1) there was an increase in chewing difficulty starting at around 60 years of age (age effect), (2) there was a steady decrease in chewing difficulty during the observation period (period effect), and (3) chewing ability improved with each successive generation born after 1951 (cohort effect). Regarding recent improvements in chewing ability, cohort effects were somewhat more important than period effects.

Heterogeneous Market Responses and the Listing Effect in M&A

2012 ◽  
Vol 02 (02) ◽  
pp. 1250007 ◽  
Author(s):  
Qingzhong Ma ◽  
David A. Whidbee ◽  
Wei Zhang
Keyword(s):  
Asymmetric Information ◽  
Relative Size ◽  
Conventional Approach ◽  
Omitted Variables ◽  
Market Responses ◽  
Monitoring Mechanism ◽  
Method Of Payment ◽  
Pooled Samples

Unlisted acquisitions differ from listed ones in three important aspects: the possibility of forming blockholders, which substitute debt as a monitoring mechanism; the liquidity discount, which mitigates managerial hubris; and the distinct deal process through which two-sided asymmetric information is revealed. Due to these differences, same firm and deal characteristics could induce heterogeneous market responses, depending on the target listing status. We find that such heterogeneous responses exist in usual characteristics such as method of payment, relative size, acquirer size, leverage, and market-to-book ratios. After these heterogeneous responses are incorporated, the puzzling "listing effect" disappears. Our results also indicate that the conventional approach used to investigate pooled samples of listed and unlisted acquisitions is effectively misspecified due to omitted variables.

How Much is Too Much: Are Merger Premiums Too High?

2006 ◽  
Author(s):  
Antonios Antoniou ◽  
Philippe Arbour ◽  
Huainan Zhao
Keyword(s):  
Merger Premiums

Impact of the Year 2000 Medicare Policy Change on Older Patient Enrollment to Cancer Clinical Trials

2006 ◽  
Vol 24 (1) ◽  
pp. 141-144 ◽  
Author(s):  
Joseph M. Unger ◽  
Charles A. Coltman ◽  
John J. Crowley ◽  
Laura F. Hutchins ◽  
Silvana Martino ◽  
...  
Keyword(s):  
Clinical Trials ◽  
Policy Change ◽  
Positive Impact ◽  
The United States ◽  
Older Patient ◽  
Treatment Trials ◽  
Race Ethnicity ◽  
Method Of Payment ◽  
Medicare Policy ◽  
Year 2000

Purpose A prior analysis by the Southwest Oncology Group (SWOG) showed that women and African American patients were adequately represented on cancer clinical treatment trials but that older patients were substantially underrepresented. Twenty-five percent of patients ≥ 65 years old were enrolled onto SWOG trials from 1993 to 1996, whereas 63% of all patients with cancer were ≥ 65 years old. Recognition of this under-representation led to a change in Medicare policy in 2000 to include coverage of routine patient care costs of clinical trials. We conducted an updated analysis of accrual trends. Methods The proportions of enrollment onto SWOG treatment trials by sex, race/ethnicity, and age (≥ 65 years) were computed for the years 1997 to 2000; corresponding rates in the United States were derived from US Census and National Cancer Institute Surveillance, Epidemiology, and End Results data. Additionally, method of payment data were analyzed over time (1993 to 2003) to assess whether patterns in method of payment changed with the new Year 2000 Medicare policy on clinical trials coverage. Results The results showed continued adequate representation by sex and race/ethnicity. Older patient accrual on SWOG trials increased significantly since 2000, with 31% of patients ≥ 65 years old enrolled from 1997 to 2000 and 38% enrolled from 2001 to 2003 (v 25% from 1993 to 1996). The percentage of patients using Medicare plus supplemental insurance also increased beginning in 2000, whereas the percentage of patients using Medicare alone remained the same. Conclusion Method of payment analyses provided evidence that the Year 2000 Medicare policy change had a positive impact, but only for those patients with supplemental private coverage of coinsurance costs. Improvements in the Medicare payment structure could further increase older patient participation in clinical trials.

scholarly journals An efficient semi-distributed hillslope erosion model for the subhumid Ethiopian Highlands

2013 ◽  
Vol 17 (3) ◽  
pp. 1051-1063 ◽  
Author(s):  
S. A. Tilahun ◽  
C. D. Guzman ◽  
A. D. Zegeye ◽  
T. A. Engda ◽  
A. S. Collick ◽  
...  
Keyword(s):  
Surface Runoff ◽  
Source Area ◽  
Sediment Concentration ◽  
Erosion Model ◽  
Ethiopian Highlands ◽  
Source Areas ◽  
Blue Nile Basin ◽  
Field Evidence ◽  
Sediment Loss ◽  
Main Variable

Abstract. Erosion modeling has been generally scaling up from plot scale but not based on landscape topographic position, which is a main variable in saturation excess runoff. In addition, predicting sediment loss in Africa has been hampered by using models developed in western countries and do not perform as well in the monsoon climate prevailing in most of the continent. The objective of this paper is to develop a simple erosion model that can be used in the Ethiopian Highlands in Africa. We base our sediment prediction on a simple distributed saturated excess hydrology model that predicts surface runoff from severely degraded lands and from bottom lands that become saturated during the rainy season and estimates interflow and baseflow from the remaining portions of the landscape. By developing an equation that relates surface runoff to sediment concentration generated from runoff source areas, assuming that baseflow and interflow are sediment-free, we were able to predict daily sediment concentrations from the Anjeni watershed with a Nash–Sutcliffe efficiency ranging from 0.64 to 0.78 using only two calibrated sediment parameters. Anjeni is a 113 ha watershed in the 17.4 million ha Blue Nile Basin in the Ethiopian Highlands. The discharge of the two watersheds was predicted with Nash–Sutcliffe efficiency values ranging from 0.80 to 0.93. The calibrated values in Anjeni for degraded (14%) and saturated (2%) runoff source area were in agreement with field evidence. The analysis suggests that identifying the runoff source areas and predicting the surface runoff correctly is an important step in predicting the sediment concentration.

Tax Benefits as a Source of Merger Premiums In Acquisitions of Private Corporations

2007 ◽  
Vol 82 (2) ◽  
pp. 359-387 ◽  
Author(s):  
Merle M. Erickson ◽  
Shiing-wu Wang
Keyword(s):  
Organizational Form ◽  
Price Premium ◽  
Tax Structure ◽  
Purchase Price ◽  
Merger Premiums ◽  
Tax Benefits ◽  
Private Corporations ◽  
Acquisition Price ◽  
Privately Held

Scholes et al. (2005) predict that S corporations, and other conduit entities such as partnerships and LLCs, can sell for a tax-driven purchase price premium relative to C corporations. We test this conjecture by comparing purchase price multiples in a sample of taxable stock acquisitions of S corporations to purchase price multiples for a matched set of taxable stock acquisitions of privately held C corporations. Consistent with Scholes et al.'s (2005) predictions, we find evidence that the organizational form of the target influences acquisition tax structure and acquisition price. Specifically, the evidence supports the conclusion that conduit entities (S corporations) fetch a taxbased purchase price premium relative to similar C corporations. Furthermore, our estimates indicate that average tax benefits in S corporation acquisitions are equal to approximately 12–17 percent of deal value.

Sign in / Sign up

Export Citation Format

Share Document