Do Bank Mergers Create Shareholder Value? An Event Study Analysis Varini Sharma Introduction to Econometrics December 17, 2009 Professor Gary Krueger Macalester College I. Introduction Since the 1980s, the U.S. banking industry has experienced a large increase in the level of mergers and acquisitions. Between 1980 and 1998, approximately 8,000 bank mergers occurred, involving about $2.4 trillion in acquired assets that can be attributed to deregulation in the1980s
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1. How does this case highlight the current and future challenges of human relations in the 21st century? This case highlights current and future challenges because in the wake of the firing of the chairman and the coo of the company which also resulted of mass losses to jobs which would fall under a scandal in my eyes because of two people that were brought in to guide a company that was merging from two successful ones, and make it one big giant successful work of human relations, but no, two
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about companies’ combination deals. Especially, in the telecommunication sector, mergers are the trend of the moment. M&A deals grab headlines, but what does this all mean to investors? This individual research tries to figure out the effects of mergers and acquisitions and what happens to the stock price when a company is bought out. Definition The terms of merger and acquisition mean slightly different things. Merger When two firms, often of about the same size, agree to go forward as a single
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return in risk arbitrage Purpose of this paper is to analyze 4750 mergers from 1963 to 1998 to characterize the risk and return in risk arbitrage. After the announcement of a merger or acquisition the target company stock typically trade at discount to the price offered by the acquiring company. The difference is known as arbitrage spread, called merge arbitrage referred to an investment strategy making profit from this spread. If merger is successful the arbitrageur will capture the arbitrage spread
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CASE 5: Acquisition of Mannesmann by Vodafone -Jatin Mehta B12085 Case summary Vodafone AirTouch is UK’s leading cellular service provider. By the late 1980s, the company started expanding its global reach through series of acquisitions, joint-ventures and by 1999 had grown to be the largest mobile company in the world. Sales and operation profits were up by 34% and 17% respectively by September 1999 and Vodafone had captured markets across US, UK and continental
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• To what extent are single versus multiple rationales utilized? What conclusions do you draw from this? 2. Force Field Analysis Find at least one significant article related to either downsizing, implementation of a new technology, or a merger or acquisition. Provide a complete APA citation of the article. • What are the key driving forces? What are the key restraining forces? • Prepare a force field analysis graph (see Figure 5.9 from your text). • Think about how to implement the
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Week 8 Acquisition/restructuring and international strategy Question 1 why are acquisition strategies popular in many firms competing in the global economy? Because of globalization, deregulation of multiple industries in many different economies and favorable legislation, the number and size of domestic and cross-border acquisitions continues to increase. Also, the acquisition strategies might increase a firm’s strategic competitiveness as well as its returns to stakeholder. Question 2 what
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TOPIC : MERGERS AND ACQUISITIONS ARTICLE REVIEWED: Determinants of Cross-Border Merger & Acquisition Performance of Chinese Enterprises AUTHORS: Wu Changqi Professor, Peking University Xie Ningling Assistant Analyst, Sun Hung Kai Properties Ltd JOURNAL: Procedia Social and Behavioural Sciences 2 pg 6896-6905 PUBLISHED YEAR: 2010 INTRODUCTION The rapid economic growth
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FACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION MNEs, JVs, and M&As Osho Aquila Adeolu Student number: 2302887 Mergers and Acquisitions, Case Study: JP Morgan Chase &Co Oulu Business School 2013 1 Table of Contents 1 INTRODUCTION ............................................................................................................................... 2 2 HISTORY AND THE M&A PROCESS .........................................................................................
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and the difference is attributed to goodwill. When the price paid is less than the actual value of the company's net assets, you have negative goodwill. Definition of 'De-Merger' A business strategy in which a single business is broken into components, either to operate on their own, to be sold or to be dissolved. A de-merger allows a large company, such as a conglomerate, to split off its various
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