...Relationship Between Exchange Rate and Stock Prices in India – An Empirical Analysis By Golaka C Nath* and G P Samanta** Abstract: The dynamic linkage between exchange rate and stock prices has been subjected to extensive research for over a decade and attracted considerable attention from researchers worldwide during the Asian crisis of 1997-98. The issue is also important from the viewpoint of recent large cross-boarder movement of funds. In India the issue is also gaining importance in the liberalization era. With this background, the present study examines the causal relationship between returns in stock market and forex market in India. Using daily data from March 1993 to December 2002, we found that causal link is generally absent though in recent years there has been strong causal influence from stock market return to forex market return. The results, however, are tentative and we need further in-depth research to identify the causes and consequences of the findings. January 2003 * Manager, NSEIL, Bandra-Complex, Bandra (East), Mumbai – 400 051 ** Assistant Adviser, RBI, DESACS, C-8, Bandra-Kurla Complex, Bandra (East), Mumbai – 400 051 The views expressed in the paper are those of the authours’ and not necessarily of the organizations they belong to. 1 Introduction The Asian crisis of 1997-98 has made a strong pitch for dynamic linkage between stock prices and exchange rates. During the crisis period, the world has noticed that the emerging markets collapsed due...
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...Exxon Mobil Corporation Introduction Exxon Mobil Corporation is a multinational oil and gas company that is based inAmerica. It’s a descendant at of the Rockefellers standard oil company and it was formed in1999 from the merger of the Exxon and Mobil companies. It’s headquartered in Irving, Texas.The company is one of the world’s largest publicly traded companies and has been ranked thenumber one or number two for the last five years. By the end of the year 2007 the company’sreserves stood at 72 million oil equivalent barrels while its production rates were expected to lastfor more than 14 years (Hrebiniak & William, 1984). The company has 37 oil refineries in more than 21 countries constituting a combineddaily refinery of approximately 66.3 million barrels. Exxon Mobil is recognized as the world’slargest refineries and this title has been associated with the former standard oil since the incorporation in the 1870s. In addition to that the company is largest of the six recognized oil supermajors. Exxon Mobil owns hundreds of other similar subsidiaries including the imperial oillimited in Canada and the sea river maritime which is a petroleum shipping company.Functionally the company is organized into several global operating categories including the 2. 2upstream, down stream, chemical Exxon Mobil global services company, XTO and finally theimperial oil (Neil,1974). Many organizations experiences a lot of stresses as well as difficulty when it comes tocoping with change and lack...
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...Integrated Oil Industry OverviewDrivers of Merger | | 3 | Strategic Fit | | 4 | Valuation of Merger | | 5 | Valuation of Synergies | | 6 | Deal Structuring | | 7 | Effect on shareholders | | 8 | Factors leading to merger’s success | | 9 | Anti-Trust Concerns | | 10 | References | | 11 | Appendix | | Executive Summary The Exxon-Mobil merger of 1998 makes for an interesting Mergers & acquisitions discussion as one of the largest mergers in the history of Oil and Gas industry. The merger took place as the industry was undergoing a phase of rapid consolidation. Operational efficiency, oil reserves in emerging economies, constantly dipping oil prices and challenges in downstream operations were the defining factors of the landscape and drivers behind the merger. The success of the merger lies in the significant synergies derived , whether it be complementary asset locations, different competencies and stronghold over different geographical locations. The near term operating synergy was a whopping $2.8 billion. Risks however existed in terms of meeting anti-trust and regulatory concerns, retention of personnel and cultural differences. Exxon-Mobil post the merger would gain an exorbitant market share in key locations which would have a bearing on fair competition. This led to FTC handing out strict compliance requirements. However, with intense efforts by the leadership at these two companies, the merger has gone down in history as one of the...
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...Exxon Mobil • Multinacional americana • ExxonMobil is the largest non-government owned company in the energy industry and produces about 3 percent of the world's oil and about 2 percent of the world's energy • Resultado de la fusión de Exxon y Mobil en 1998, en un acuerdo de US$ 73.7 billones • Ambas empresas son descendentes de histórica Standard Oil, fundada en 1870 por John D. Rockefeller • Marcas: o Exxon o Mobil o Esso • Casa Matriz: Irving, Texas • Divisiones: o Upstream (extracción) o Downstream (refinación) o Chemical o Salió del negocio de distribución en 2008 para enfocarse en los otros negocios. o Las estaciones de servicio siguen ocupando la marca. • Riesgos: o Poca preocupación a cerca de medio ambiente o No está clara su política sobre el cambio de clima. Ha opoyado organizaciones contra el protocolo de Kioto. o La lenta acción de la empresa en el episodio del filtración del petrolero Valdez en 1989, unos de los mayores accidentes del género en el mundo fue criticado duramente en todo el mundo Análisis de la Fusión Exxon had better return on assets (6.75%) and return on equity (14.57%) ratios (Mobil’s were 3.95% and 9.01% correspondingly). This situation represented Exxon’s better efficiency at using investment funds (shareholder’s equity) to generate earnings growth. Exxon was more stable and effective...
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...Risk Associated in the business in the business diversification activity 1. Creation of a new or common corporate culture between Exxon and Mobil 2. Retention of key employees with the right knowledge and expertise 3. Meeting regulatory and anti-trust requirements to prevent dissolution and maintain competitiveness Merger Risks Unfortunately, any merger between two established companies creates challenges that must be overcome in order to achieve the projected benefits. These include creating a new/common culture as opposed to the distinct cultures of the independent companies, meeting regulatory and antitrust requirements to assure the continued functioning of a competitive marketplace, and retention of key personnel to reap the benefits of their knowledge and expertise. The companies have significantly different corporate cultures. Exxon is a conservative company with a strong ethic of following the rules handed down from above, while Mobil is more liberal and expects individuals to think for themselves and develop their own solutions to the problems that arise. On the regulatory front, as the top two U.S. oil companies, there are many markets throughout the United States where Exxon and Mobil dominate the sale of gasoline, either through directly-owned filling stations or through franchisees. It is highly probable that regulators will require divestiture of some filling stations and release of some franchisees from their contracts in order to maintain...
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...Introduction Exxon Mobil is an American company resulting of a merger from 1999 between Mobil Oil & Exxon Corporation. Exxon Mobil’s field of activity focuses on oil’s extraction, refining and distribution where it is one of the leaders. Exxon Mobil is also one of the largest petrochemicals producers in the world. It has 45 refineries in twenty-five countries with a distilling capacity of 6.3 million barrels of oil per day. It also has 42,000 service stations in more than 100 countries under the brand names Exxon, Esso and Mobil. The corporation has regained the No. 1 rank, in the fortune magazine, of the largest U.S. companies, dethroning Wal-Mart, the retail giant, with a turnover of 453 billion dollars. We are going to perform an Ethical Review of Exxon Mobil. As a first step, it is important to say that when it comes to ethics and oil industry everything already seems lost in advance. Since long the image of this industry is marred by various environmental disasters (oil spill on the coasts etc…) and many business problems that suggest that oil companies have blood on their hands. Following these disturbing facts it now seems essential for Oil businesses to regain a public image for stakeholders & all others. Indeed, a lot of these events have significantly harmed the Oil Industry. We will therefore study Exxon Mobile’s ethics based on its history, its ethics policy, its corporate board & key executives and finally through its ethical practice. ...
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...INDEPENDENT Assignment 4: Merger, Acquisition, and International Strategies By: Professor Unknown Business 499 Business Administration Capstone Strayer University Winter Quarter 2015 BENEFIT OF MERGING AND STAYING INDEPENDENT Every week as we fill up our gas tanks and wonder why gas prices are up and down; we wonder a few things. How much is this company making off us? Why are gas prices going up now? As I get to what this assignment is about, the question for you I have is. Do you think and oil company could get even bigger? In 1999, Exxon and Mobil agreed to an $80 billion dollar merger to form Exxon- Mobil Corporation. According to Mary DiMaggio’s article, “The Top 10 Best (and Worst) Corporate Mergers of All Time... Or, the Good, the Bad, and the Ugly”, dated 9/15/09, not only did Exxon- Mobil become the largest company in the world, but it reunited its 19th century former selves, John D. Rockefeller’s Standard Oil Company of New Jersey (Exxon) and Standard Oil Company of New York (Mobil). In my opinion and based on research I think the merger was a wise choice. It’s a wise choice because they set themselves up to lead in a few different markets. You could say that they are a small rich oil nation. The first reason I think it was a wise choice because now that the two companies have merged they have reduced their expenses. Reducing expensing means more money in revenue. Another reason I believe the merger of the two companies was a wise choice...
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...Royal Dutch Shell Exxon Mobil Team #1: EXECUTIVE SUMMARY Exxon Mobil Corporation (ExxonMobil) is an oil and gas company. It is the world’s largest integrated oil company. The company carries out the exploration and production of oil and gas; refining, transportation and marketing of oil and natural gas; and manufacture and sale of petroleum products. ExxonMobil also has interests in petrochemicals and electricity generation facilities. The company operates through three reportable business segments, namely, Upstream, Downstream and Chemical. It offers products and services under various brands such as Exxon, Esso and Mobil. ExxonMobil has presence in Americas, Europe, Asia-Pacific, Australia and Africa. ExxonMobil is headquartered in Texas, the US. Royal Dutch Shell Plc commonly known as Shell is an independent company with its registered office located in London, UK and headquartered in The Hague, Netherlands operating in the oil and gas industry globally. It is the second largest oil company in the world. The operations of the company are divided into three main segments including: Downstream, Upstream and Projects and Technology. The Upstream segment combines activities involved in the search for and recovery, liquefaction and transportation of oils and natural gas and wind energy. The Downstream segment is engaged in the activities of manufacturing, distributing and marketing of chemicals and oil products. Finally, the Projects and Technology segment includes all the...
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...holds its head office in Texas, it is additionally a multinational firm that is recognized and utilized worldwide. The Exxon Firm was instituted in the year of 1934 across the mergence of the Average Oil Firm of New Jersey and the Anglo-American Oil Company. Even though these two firms joined in 1934, the name and company of Exxon did not come about until 1972. Exxon Mobil was instituted afterward, in 1999, alongside the mergence of Exxon and Mobil. ExxonMobil is an extremely prosperous firm, generally because “it is the third biggest firm by revenue and the subsequent biggest openly traded firm by marketplace backing in the world.” (Nagurney, 2010) An example of how big and successful ExxonMobil is, is lead by its largest shareholder, which happens to be the Bill and Melinda Gates Foundation. “The company is ranked No. 5 globally in 2013. ExxonMobil’s reserves were 72 billion BOE (barrels of oil equivalent) at the end of 2007 and, at then rates of production, were expected to last over 14 years. With 37 oil refineries in 21 countries constituting a combined daily refining capacity of 6.3 million barrels, ExxonMobil is the largest refiner in the world, a title that was also associated with Standard Oil since its incorporation in 1870.” (Nagurney, 2010) All of the products that ExxonMobil markets around the world are marketed through the brands of Exxon, Mobil, and Esso. The company consists of different operating divisions, including those that are global divisions. Two of the...
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...CORPORATE FINANCE INTRODUCTION Consolidation is the act of merging many things into one. In business, it often refers to the mergers and acquisitions of many smaller companies into much larger ones. In other words, it also can be defined as the combining of assets, liabilities and other financial items of two or more entities into one. This article is taken from business news from The Starbiz entitled “Stronger entity from Kencana-SapuraCrest merger”. The date of the news is on Tuesday July 12, 2011. Based on the title, we got the general idea that the combination of certain companies has given an impact towards the economy as a whole besides proving that merging together can improve the efficiency and effectiveness of both companies. ISSUES This news is about Kencana Petroleum and SapuraCrest Petroleum, which are separate companies that provide products, services and solution for the oil and gas industry. Nowadays, the oil and gas industry has order for consolidation. Then, the idea of consolidation of both companies has come out. There could be a synergy between the different areas of oil and gas services provided by both companies. Besides, SapuraCrest and Kencana could rely on each other's expertise and the two could become a larger and integrated entity. Both companies are merged with the intention to create the world largest oil and gas service provider. OSK Research analyst Jason Yap said Kencana is an expert in engineering and fabrication services while SapuraCrest...
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...ExxonMobil is an American oil and gas corporation and a direct descendant of John D. Rockefeller's Standard Oil Company (Wikipedia.org). It was formed in November 1999 by the merger of two companies Exxon and Mobil. ExxonMobil is involved in oil and gas exploration, production, transportation and marketing in more than 200 countries and territories. Some of the major lines of business ExxonMobil is operating in is they manufacture basic petrochemicals, such as olefins, aromatics, and polyethylene and polypropylene plastics (Fundinguiverse.com). ExxonMobil supplies refined products and services to more than 40,000 service stations operating under the brand names Exxon, Mobil, and Esso (Fundingunivers.com). These products and services include fuels, lubricants, stores & marts, service stations and travel services (ExxonMobil.com). ExxonMobil has many employees and most of them are employed internationally. At the end of the year 2007, ExxonMobil’s worldwide workforce numbered nearly 81,000 employees. 37 percent were located within the United States and 63 percent internationally (ExxonMobil.com). Our team chose to do ExxonMobil because we were interested in the price of gas, and why it has kept going up. We wanted to find out how much revenue gas companies where making, and the cause of the increasing gas prices. Since ExxonMobil is the world's largest publicly traded international oil and gas company, we chose to do them. As we did our strategic analysis about them, we found...
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...name to Mobil after Standard Oil celebrates 100 years being in business. In 1972 Jersey Standard changes its name to Exxon Corporation with the approval from Jersey Standard shareholders during a special meeting. In 1997 Mobil introduces speedpass an electronic system which activates the pumps and charges credit cards. In November 1999 Exxon and Mobil join to form Exxon Mobil Corporation. This merger is to enhance their ability to be more effective global competitors. Ethic, Legal and Social Responsibility The ethical responsibility at Exxon Mobil is to comply with all governmental laws, rules and regulations. The corporation has chosen to have the highest integrity. Exxon Mobil expects compliance with its standard of integrity throughout the corporation and they will not tolerate any employees who achieve results cost in violation of law or who deal unconscientiously. Exxon Mobil Corporation has been conducting business in a manner that would be compatible for our environment and economic needs, which they operate to protect the communities in the safety, security, and health. The commitment they have for the community has been documented in the safety, security, health, environmental and product safety policies. All of these are put through the management system. The legal issues that they had been when there was an oil spill in Alaska. It was a major one. It was the Valdez oil spills which happen on March 24, 1989. According to the news it was the lowest point in Exxon Mobil’s...
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...Applying Machiavellian Principles to Exxon Mobil Presented By: Presented For: Cori Knight (Section 34) 3/14/2014 About: The purpose of this essay will be to relate the principles of Machiavelli used in the text “The Prince” to actions taken by Exxon Mobil during important company matters. In many ways, a multi-million dollar corporation has many of the same qualities as a prince; they both have wealth, power, and citizens who demand their services. In the text “The Prince” by Niccolò Machiavelli, the author provides instructions and lessons for a new prince that will guide him to have a successful rule over his people. Machiavelli supports his claims with empirical evidence of previous rulers who both failed and succeeded during their rules. Many of the concepts that Machiavelli teaches to the prince can be seen in use by many successful corporations today such as Exxon Mobil. The concepts and ideas of Machiavelli have been used by Exxon Mobil to address some of its most recent pressing company matters such as acquisitions and oil spills. Exxon Mobil has used Machiavellian principles to successfully integrate its newly acquired companies in addition to successfully cleaning up its controversial oil spills. When acquiring a new corporation, the parent company must take into consideration that the transition for the subsidiary company is oftentimes very difficult, especially if that company is not used to change. When considering this...
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...Exxon Mobil is an oil and gas company that was founded in 1999; a merger of Exxon and Mobil. It is a Descendant of John D Rockefeller’s Standard Oil Company (Exxon Mobil). Exxon is a US based company with its head quarters located in Irving Texas, even though it is considered an international corporation. Exxon Mobil is considered the world’s largest publicly traded international oil and gas company, and has even been ranked as the number one traded company in the world. Currently Exxon is traded on the New York Stock Exchange, is a Dow Jones Industrial Average Component as well as a S&P 500 Component (Exxon Mobil). When it comes to oil, Exxon Mobil does it all. With 102,700 employees, Exxon has broken its operations into two main categories Upstream and Downstream (Yahoo Finance). Exxon does partake in other types of operations such as it operates coal mines and has its own IT, real estate, help center, as well as an engineering and chemical research and development department which fall under the umbrella of Exxon Mobil Corp (Exxon Mobil). Exxon’s two main divisions are incredibly important in keeping its industry advantage, where the Upstream sector is responsible for the exploration of new resources in an efficient and economical manner. The Upstream sector also extracts resources and then deals with the wholesale and distribution of the minerals. The Down Stream operations include refining the mineral and managing retail operations and marketing. Due to Exxon’s vast...
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...Exxon Mobil Corporation Exxon Mobil Corporation - Financial and Strategic Analysis Review Publication Date: 03-Aug-2012 Reference Code: GDGE1203FSA Company Snapshot Key Information Exxon Mobil Corporation, Key Information Web Address www.exxonmobil.com Financial year-end December Number of Employees 82,100 NYSE XOM Source : GlobalData Company Overview Exxon Mobil Corporation (ExxonMobil) is an integrated global oil and gas company. The company's operations include exploration and production of oil and gas; refining, transportation and marketing of oil and natural gas; and manufacture and sale of petroleum products. ExxonMobil also has interests in petrochemicals and electricity generation facilities. The company operates through three reportable business segments, namely, Upstream, Downstream and Chemical. It offers products and services under various brands such as Exxon, Esso and Mobil. ExxonMobil is headquartered in Texas, the US. ExxonMobil is expanding its operations and presence in unconventional gas resource assets. 9.75 4.37 26.59 11.03.00 15.06 0.02 Key Ratios Exxon Mobil Corporation, Key Ratios P/E EV/EBITDA Return on Equity (%) Debt/Equity Operating profit margin (%) Dividend Yield SWOT Analysis Exxon Mobil Corporation, SWOT Analysis Strengths Weaknesses Improvement in Financial Performance Extensive Research & Development Activities Geographical Diversification Pending Litigations Note: Above ratios are based on share price as of 01-Aug-2012...
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