scholarly journals Mergers and Acquisitions in Brazilian Higher Education Companies

2021 ◽  
Vol 3 (1) ◽  
pp. 23-37
Author(s):  
Alan Willame de Souza Silva ◽  
Tabajara Pimenta Junior ◽  
Mara Alves Soares ◽  
Luiz Eduardo Gaio ◽  
Marcelo Augusto Ambrozini

Purpose: The objective of this study is to detect and measure the occurrence of extraordinary returns to the shareholders of private higher education companies, listed on the Brazilian stock market, B3, when mergers and acquisitions occur. Methods: This study uses the Event Study technique on process data from 46 merger and acquisition events, that occurred in the period of 2007- 2015, involving the three main Brazilian private higher education companies, and applies the Z-statistic to test the accumulated standard abnormal returns. Results: Based on the results, it is possible to affirm that the presence of abnormal returns was not detected after merger and acquisition events. Events of this nature do not promote changes in the short-term value of the company, in the cases of large and publicly traded Brazilian private higher education companies. Implications: The announcement of a merger or acquisition process has wide repercussions in the media and attracts the attention of investors that aims to gain abnormal earnings from anticipated post-merger value creation. This study showed that the potential gain in value does not always occur or is reflected in the stock prices of the companies involved, in the short term.

2017 ◽  
Vol 10 (1) ◽  
pp. 252
Author(s):  
Cinara Gambirage ◽  
Wlamir Gonçalves Xavier ◽  
Jaison Caetano da Silva ◽  
Frederick Greene ◽  
Jean Marc Gandonou

Este artigo mede o desempenho econômico das Instituições de Ensino Superior (IES) privadas em educação a distância com estratégias de crescimento distintas. A análise usa estudos de casos e compara o desempenho econômico de duas IES privadas em educação a distância durante o período de 2012-2014: uma com crescimento através de fusões e aquisições (F&A) e outra que cresceu, sozinha, através do aumento de matrículas. O estudo analisou os indicadores econômicos das duas IES. Os resultados das duas IES foram compilados e, então, as diferenças nos resultados foram mostradas. A pesquisa suporta o arcabouço teórico de que há benefícios econômicos da estratégia de crescimento de F&A na educação a distância.


2017 ◽  
Vol 20 (1) ◽  
pp. 151
Author(s):  
Suherman Suherman ◽  
Riznita Nuraisyah ◽  
Gatot N. Ahmad

Tujuan penelitian ini adalah untuk menganalisis perbedaan abnormal return dan likuiditas saham sebelum dan sesudah pengumuman akuisisi. Pengukuran abnormal return menggunakan market-adjusted model. Pengukuran likuiditas saham menggunakan volume perdagangan dan Amihud’s Illiquidity ratio. Periode pengamatan (event windows) penelitian ini selama 11 hari bursa, yaitu 5 hari bursa sebelum pengumuman akuisisi dan 5 hari bursa sesudah pengumuman akuisisi. Sampel penelitian ini adalah 70 perusahaan yang mengumumkan akuisisi antara 2010-2014. Hasil uji hipotesis menunjukkan bahwa 1)terjadi perbedaan abnormal return yang signifikan sebelum dan sesudah akuisisi, dan 2)tidak terdapat perbedaan likuiditas saham yang signifikan pada periode sebelum dan sesudah akuisisi.The purpose of this study is to analyze the difference of abnormal return and liquidity before and after the announcement of mergers and acquisitions. Abnormal returns are measured with market-adjusted model. Liquidity is measured with trading volume and Amihud Illiquidity ratio. The observation period (event windows) of this research is 11 trading days which 5 trading days before the announcement of the merger and acquisition and 5 trading days after the announcement mergers and acquisitions. Research sample consists of 70 companies which announce merger and acquisition between 2010 and 2014. The results show that 1)there is significant differences of abnormal returns before and after merger and acquisition, and 2)there is no significant differences of stock liquidity before and after merger and acquisition.


2018 ◽  
Vol 25 (4) ◽  
pp. 33
Author(s):  
Fábio Luciano Oliveira Costa

Este texto tem como objetivo central expor o estudo desenvolvido sobre a Kroton Educacional S.A., de 2007 a 2012, tendo em conta a notável expansão do ensino superior no setor privado com finalidades lucrativas, nas quase duas últimas décadas, imersa num processo mais amplo de financeirização do capital, que encontrou maiores incentivos a partir do final dos anos de 1960, em especial, nos países centrais. A escolha do referencial de análise se deu pela abordagem qualitativa, por meio do estudo da legislação pertinente ao assunto, da bibliografia associada ao tema, além dos exercícios sociais da companhia, no período delimitado. Observou-se como as novas estratégias de gestão corporativa da empresa, bem como certos incentivos governamentais permitiram seu importante crescimento. Com as metas da Kroton Educacional S.A. para sua valorização em curto prazo, sobretudo no mercado acionário, estreitaram-se os laços entre educação e mercadoria.Palavras-chave: Financeirização do capital. Kroton Educacional S.A. Ensino Superior Privado. Mercadoria. Lucro.PUBLIC POLICIES, EXPANSION OF PRIVATE HIGHER EDUCATION AND FINANCING OF CAPITAL IN BRAZIL: the case of Kroton Educacional S.A.AbstractThe main objective of this text is to outline the study carried out on Kroton Educacional S.A. from 2007 to 2012, taking into account the remarkable expansion of higher education in the private sector for profit in the last two decades, immersed in a broader process of financialization of capital, which found greater incentives from the late 1960s, especially in the central countries. The choice of analytical reference was based on the qualitative approach, through the study of relevant legislation, the bibliography associated with the topic, and the company's fiscal years, within the defined period. It was observed how the company's new corporate management strategies as well as certain government incentives allowed its important growth. With the goals of Kroton Educacional S.A. for its short-term appreciation, especially in the stock market, the ties between education and merchandise were tightened.Keywords: financialization of capital. Kroton Educacional S.A. Private Higher Education. Merchandise. Profit.POLÍTICAS PÚBLICAS, EXPANSIÓN DE LA ENSEÑANZA SUPERIOR PRIVADA LUCRATIVA Y FINANCIERIZACIÓN DEL CAPITAL EN BRASIL: el caso de Kroton Educacional S.A.ResumenEste texto tiene como objetivo central exponer el estudio desarrollado sobre Kroton Educacional S.A., de 2007 a 2012, teniendo en cuenta la notable expansión de la enseñanza superior en el sector privado con fines lucrativos, en las casi dos últimas décadas, inmersa en un proceso más amplio de financierización del capital, que encontró mayores incentivos a finales de los años 1960, especialmente en los países centrales. La elección del referencial de análisis se dio por el abordaje cualitativo, por medio del estudio de la legislación pertinente al asunto, de la bibliografía asociada al tema, además de los ejercicios sociales de la compañía, en el período delimitado. Se observó cómo las nuevas estrategias de gestión corporativa de la empresa, así como ciertos incentivos gubernamentales, permitieron su importante crecimiento. Con las metas de Kroton Educacional S.A. para su valorización a corto plazo, sobre todo en el mercado accionario, se estrecharon los lazos entre educación y mercancía.Palabras clave: Financierización del capital. Kroton Educacional S.A.. Enseñanza Superior Privada. Mercancía. Ganancia.


JEMBATAN ◽  
2020 ◽  
Vol 17 (1) ◽  
pp. 13-24
Author(s):  
Rivanny Astricia ◽  
Isni Andriana ◽  
Reza Ghasarma

The number of mergers and acquisitions (M&A) in Indonesia is growing because of government policy and also their usefulness as a corporate tool to pursue strategic growth and profit. This study aims to analyze the abnormal returns of banking industries pre and post-merger and acquisition in Indonesia. Using a sample of 7 M&A deals in Indonesia from 2018 to 2019, the event study methodology used in this study is Paired Sample T-Test to tell the difference between pre and post abnormal returns. The data that use for calculating is -30 until +30 of Merger and Acquisition. The result shows that from 7 mergers and acquisition there is only one bank that has a significant difference while the rest does not have a significant difference pre and post the event. This research hopefully can be used for further research, useful for investment practitioners.


2021 ◽  
Vol 26 (1) ◽  
pp. 4-25
Author(s):  
Veronika S. VINOGRADOVA

Subject. The article presents the basic principles of the event research methodology, which is one of the most popular empirical tools in corporate finance, and mergers and acquisitions. Objectives. The article introduces the main methodologies for calculating expected and abnormal returns, the main approaches for testing abnormal returns and measuring the statistical significance of the results, and it also notes the advantages and limitations of the methodology. Methods. Based on a content analysis of the top classical works in event analysis, the main algorithm and research approaches of the method are presented. The basic concept has been expanded taking into account the results of modern work aimed at improving the methodology. The applicability of the method and its relevance were verified based on the analysis of spotlight publications for 2015–2020. Results. The article provides a review of the latest developments in M&A research. It highlights the main modern trends in the application of the event analysis method. The methodology is shown to be easy to use, with market data used for analysis available in major financial databases. This allows for empirical research with a large sample of securities. In addition, stock prices reflect the direct expectations of investors and best reflect the value created by the event when compared to financial statement analyses that are often misstated. Conclusions and Relevance. It is concluded that the event analysis method remains the key methodology in the field of mergers and acquisitions and is actively used by researchers. Improved econometric approaches allow for increased statistical significance and more accurate results.


2017 ◽  
Vol 9 (3) ◽  
pp. 141
Author(s):  
George Giannopoulos ◽  
Ehsan Khansalar ◽  
Patel Neel

This study investigates the impact of takeover announcements on UK acquirer shareholders’ wealth during the period 2002-2006. More specifically, it is investigated whether the impact of single acquirers on shareholders’ wealth is significantly different from the impact of multiple acquirers. Findings suggest that acquirer shareholders experience positive abnormal returns during the announcement period. Moreover, the results indicate single acquirers consistently outperform multiple acquirers when testing for deal characteristics such as: payment method (cash or equity), target status (public or private), target location (domestic or cross-border) and industry relatedness (specification or diversification). Performance declines with sequential acquisitions due to merger programme announcement hypothesis. Successful first time acquirers suffer from hubris whilst unsuccessful first time acquirers learn from their experiences suggested by the organisation learning hypothesis but go on to suffer from hubris. Acquisitions of private firms yield significant abnormal returns whereas public acquisitions reduce the value of UK acquirers. The effect of cash and equity, domestic and foreign, related and unrelated takeovers are inconclusive for the short-term windows investigated by this study.


2019 ◽  
Vol 11 (11) ◽  
pp. 3122 ◽  
Author(s):  
Truzaar Dordi ◽  
Olaf Weber

Several prominent institutional investors concerned about climate change have announced their intention or have divested from fossil fuel shares, to limit their exposure to the industry. The act of fossil fuel divestment may directly depress share prices or stigmatize the industry’s reputation, resulting in lower share value. While there has been considerable research conducted on the performance of the fossil fuel industry, there is not yet any empirical evidence that divestment announcements influence share prices. Adopting an event study methodology, this study measures abnormal deviations in stock prices of the top 200 global oil, gas, and coal companies by proven reserves, on days of prominent divestment announcements. Events are analyzed independently and in aggregate. The results make several notable contributions. While many events experienced short-term negative abnormal returns around the event day, the effects of events were more pronounced over longer event windows following the New York Climate March, suggesting a shift in investor perception. The results also find that divestment announcements related to campaigns, pledges, and endorsements all have a significant effect over the short-term event window. Finally, the results control for the general underperformance of the industry over the estimation window, attesting that the price change is caused by divestment announcements. Several robustness tests using alternate expected returns models and statistical tests were conducted to ensure the accuracy of the result. Overall, this study finds that divestment announcements decrease the share price of the fossil fuel companies, and thus, we conclude that ‘divestors’ can influence the share price of their target companies. Theoretically, the result adds new knowledge regarding the efficacy of the efficient market hypothesis in relation to divestment.


2020 ◽  
Vol 19 (1) ◽  
Author(s):  
Pinky Mal ◽  

This study attempts to examine the stock behaviour of acquirer banks during pre and post-merger and acquisition (M&A) announcement period in the Indian banking sector. Data of M&A events that took place in the Indian banking sector during 2000-2018 was collected from the prowessdx database. The sample consisted of 31 merger and 351 acquisition announcements during 2000-2018 in the Indian Banking sector. Stock prices of sample banks were extracted from the NSE for an event window of -10 to +10 days and the event study methodology was used for analysis. The results suggest that shareholders of Indian acquirer banks generate small and insignificant abnormal returns from M&A deals. Return variability was also noticed from the curvy jumps in the average abnormal spread of returns during the announcement period. Whereas, the average abnormal change in liquidity witnessed a sharp hike on day 0 i.e. the date of deal announcement and it remained negative throughout the post-deal period. KEYWORDS: Mergers and Acquisitions, Stock Return, Stock Volatility, Stock Liquidity, Event Study Methodology.


2021 ◽  
Vol 26 (1) ◽  
pp. 4-25
Author(s):  
Veronika S. VINOGRADOVA

Subject. The article presents the basic principles of the event research methodology, which is one of the most popular empirical tools in corporate finance, and mergers and acquisitions. Objectives. The article introduces the main methodologies for calculating expected and abnormal returns, the main approaches for testing abnormal returns and measuring the statistical significance of the results, and it also notes the advantages and limitations of the methodology. Methods. Based on a content analysis of the top classical works in event analysis, the main algorithm and research approaches of the method are presented. The basic concept has been expanded taking into account the results of modern work aimed at improving the methodology. The applicability of the method and its relevance were verified based on the analysis of spotlight publications for 2015–2020. Results. The article provides a review of the latest developments in M&A research. It highlights the main modern trends in the application of the event analysis method. The methodology is shown to be easy to use, with market data used for analysis available in major financial databases. This allows for empirical research with a large sample of securities. In addition, stock prices reflect the direct expectations of investors and best reflect the value created by the event when compared to financial statement analyses that are often misstated. Conclusions and Relevance. It is concluded that the event analysis method remains the key methodology in the field of mergers and acquisitions and is actively used by researchers. Improved econometric approaches allow for increased statistical significance and more accurate results.


2020 ◽  
Vol 11 (Winter) ◽  
pp. 189-191
Author(s):  
Fenella Somerville

Unemployment is a significant concern in South Africa and employability has become increasingly central to the role of higher education. Government expects graduate labour to boost the economy, and students have aspirations for a better future. However, access to the workplace is often constrained by broader social, economic and political factors. This research sought to find out from media graduates about their experiences navigating the workplace, and to understand how private higher education enhances equitable opportunities for media graduate employability and well-being. In the rapidly changing world of digital technology, employment in the media is taking new forms that challenge how employability is defined and the attributes required of graduates.


Sign in / Sign up

Export Citation Format

Share Document