Home About us Contact
|
Home About us Contact | ||
|
|
||
Mergers
Kinds of Mergers Terms modified by Mergers Selected AbstractsCOMPETITIVE ISSUES IN THE TAIWANESE BANKING INDUSTRY: MERGERS AND UNIVERSAL BANKSTHE DEVELOPING ECONOMIES, Issue 3 2003Peiyi YU This paper investigates scale economies and scope economies in the Taiwanese banking system, looking beyond the market-power (MP) and efficient-structure (ES) hypotheses. Given the existence of overall economies of scale and the positive value of expansion path sub-additivity, we conclude that there might be large increases in profits following mergers. Moreover, since the profit-structure relationship after financial reform is determined by the relative-market-power hypothesis, this consolidation trend will not necessarily decrease the social benefit for Taiwanese consumers. With regard to scope economies and product-specific economies of scale, we are unable to recommend whether Taiwanese banks should develop as specialized banks or diversified banks in the future. Finally, we find that risk indicators play an important role in explaining the observed variation in bank profitability, and present evidence that default risk and leverage risk have negative effects on the profits of banking, although the effect of portfolio risk is uncertain. [source] LARGE IS BEAUTIFUL: HORIZONTAL MERGERS FOR BETTER EXPLOITATION OF PRODUCTION SHOCKS,THE JOURNAL OF INDUSTRIAL ECONOMICS, Issue 1 2008WEN ZHOU The profitability of horizontal mergers is investigated in a situation in which firms face a production shock and therefore are uncertain about their future costs. I show that, due to production rationalization, small-scale mergers can be profitable if the uncertainty is large. The efficiency gain in production also implies benign welfare consequences. Under cost uncertainty, a profitable merger always improves social welfare if no more than half of the industry's firms are allowed to merge. Finally, I show that the incentives to merge depend on the information structure. Firms are less likely to merge when they possess more information. [source] MANAGERIAL INCENTIVES AND THE PRICE EFFECTS OF MERGERS,THE JOURNAL OF INDUSTRIAL ECONOMICS, Issue 3 2005Abraham L. Wickelgren Most analysis of market power assumes that managers are perfect agents for shareholders. This paper relaxes that assumption. When managers of a multi-product firm exert unobservable effort to improve product quality, there is a trade-off between providing adequate effort incentives and ensuring sufficient price-coordination between the product divisions. This makes some intra-firm price competition optimal, explaining why many multi-product firms allow for competition between divisions. When there are effort spillovers, the optimal amount of price competition can be as great as when the products are under separate ownership. Even with some profit-sharing, intra-firm price competition can reduce quality-adjusted price, which has important implications for antitrust policy. [source] MERGERS WITH SUPPLY FUNCTIONSTHE JOURNAL OF INDUSTRIAL ECONOMICS, Issue 4 2004ur Akgün I analyze the equilibrium effects of a merger in an industry when firms compete by submitting supply functions. Under the assumptions that the industry capital stock is fixed and production costs are quadratic and decreasing in capital, I find that any merger results in all firms reducing supply. The decrease in supply by non-participating firms makes any merger profitable. A merger from a symmetric industry lowers welfare. [source] DIVISIONALIZATION AND HORIZONTAL MERGERS IN A VERTICAL RELATIONSHIP*THE MANCHESTER SCHOOL, Issue 3 2009TOMOMICHI MIZUNOArticle first published online: 5 APR 200 In this paper we evaluate the effects of horizontal mergers in a vertical relationship. Each downstream firm can create autonomous divisions. We show that an infinitesimal merger of downstream firms may exhibit a positive welfare effect if the upstream and downstream sectors are sufficiently unconcentrated. However, any merger of upstream firms reduces social welfare. Moreover, a decrease in the concentration in the upstream stage (respectively downstream stage or non-merging stage) makes the welfare effects of the merger in the upstream stage (respectively downstream stage or non-merging stage) less negative (respectively ambiguous or ambiguous). [source] MERGERS UNDER UNCERTAINTY: THE EFFECTS OF DEBT FINANCING,THE MANCHESTER SCHOOL, Issue 5 2007M. PILAR SOCORRO In this paper, we consider a Cournot oligopoly with demand uncertainty, fixed costs and constant marginal costs. The demand uncertainty makes some mergers that would be unprofitable in a certain environment profitable in this model. However, socially advantageous mergers may be still unprofitable for the colluding firms, so public intervention may be needed. One possibility consists in subsidizing such mergers. However, the combination of limited liability debt financing and an appropriate antitrust policy leads to higher social welfare than subsidies. The reason is that, given the limited liability effect, merging parties compete more aggressively, so the reduction in market quantity is mitigated. [source] NEW ZEALAND CREDIT UNION MERGERSANNALS OF PUBLIC AND COOPERATIVE ECONOMICS, Issue 3 2010Lynn Mcalevey ABSTRACT,:,Research into the benefits of mergers in small financial institutions, in particular credit unions, is sparse. This study helps to fill this gap by analyzing recent intense merger activity in New Zealand credit unions. The major driver for these mergers was not the usual reason of attempting to increase efficiency for competitive purposes but rather enforced government action. Data envelopment analysis is used to explore changes in efficiency in merged credit unions between 1996 and 2001. Those credit unions not involved in merger activity are used as a control group. Overall, credit unions have become more efficient over the period, notably in those that undertook mergers. The Malmquist index indicates significant technological progress over the period but a slight regression in terms of efficiency. [source] EVALUATING GAINS FROM MERGERS IN A NON-PARAMETRIC PUBLIC GOOD MODEL OF POLICE SERVICESANNALS OF PUBLIC AND COOPERATIVE ECONOMICS, Issue 1 2008Richard SIMPER ABSTRACT,:,The merger of police services in the UK has been suggested on the grounds that efficiency improvements will be possible. This paper applies a public good model of the police service to evaluate the potential efficiency gains from mergers of police services in England and Wales. It uses a non-parametric method suggested by Bogetoft and Wang (2005). We construct a dataset that reflects the public good nature of police service and allows for the exogenous imposition by government on the level of police service budgets. Our main finding is that English and Welsh police service mergers could lead to increases in police staff resource efficiencies between 10 per cent and 70 per cent. Hence, we confirm the government's decision to merge English and Welsh police services. [source] SEQUENTIAL MERGERS WITH DIFFERING DIFFERENTIATION LEVELS,AUSTRALIAN ECONOMIC PAPERS, Issue 3 2009TAKESHI EBINA We study sequential merger incentives under presence of product differentiation. Two sets of firms produce closely related goods, whereas each set produces more differentiated goods. Merger incentives under product differentiation are found to be stronger for two firms producing closely related goods than more differentiated goods. Also, after one merger, other firms are willing to follow with their own merger, resulting in sequential mergers. This result is consistent with the recent mergers in the video game software industry in Japan. [source] The Emerging Role of the European Commission in Merger and Acquisition Monitoring: The Boeing,McDonnell Douglas CaseEUROPEAN FINANCIAL MANAGEMENT, Issue 4 2001Nihat Aktas The object of this study is to evaluate the consequences of the application of the EEC Regulation 4064/89 to non,European companies. We focus on the Boeing,McDonnell Douglas merger case, one of the first non,European mergers considered by the Commission. The analysis of abnormal returns on the two securities shows that the threat of a ban of the merger by the Commission were not perceived as credible at first. But when Boeing decided to ask the support of the American government, just after the decision of the European Commission to extend its investigations to the long term exclusivity contracts, the role of the Commission emerged. [source] Valuing the Potential Transformation of Banks into Financial Service Conglomerates: Evidence from the Citigroup MergerFINANCIAL REVIEW, Issue 2 2000Jarrod Johnston G21/G22 Abstract The merger between Citicorp and Travelers Group on April 6, 1998 could have emitted two relevant signals for firms that provide financial services. The first signal is the endorsement by two prominent financial institutions that benefits from cross-selling of bank services with insurance services, brokerage services, and other financial services can be realized. The second signal is that regulators will allow the combination of commercial banking with insurance underwriting and full-service brokerage, paving a path for similar combinations in the future. We document a favorable share price response for commercial banks, insurance companies, and brokerage firms, which supports the argument that the merger sets a precedent for other combinations between banks and nonbank financial services that will facilitate cross-selling and efficiencies. [source] FTC Goes Wild Over Whole Foods MergerJOURNAL OF CORPORATE ACCOUNTING & FINANCE, Issue 2 2008Robert W. Rouse Despite a credit crunch in 2007, merger and acquisition (M&A) activity has continued at a rapid pace. The two primary regulatory agencies that evaluate proposed mergers,the Department of Justice (DOJ) and the Federal Trade Commission (FTC),issued a guidelines commentary in 2006. It gave us vital insight on how the DOJ and FTC evaluate mergers. The authors review the commentary and show how it worked in the case of one recent acquisition,where the FTC and DOJ disagreed. The authors then discuss how companies can avoid the M&A mistakes of the past. © 2008 Wiley Periodicals, Inc. [source] Why working capital drives M&A todayJOURNAL OF CORPORATE ACCOUNTING & FINANCE, Issue 2 2007James S. Sagner Merger and acquisition (M&A) activities once focused on strategic transactions for diversification, or for vertical or horizontal integration. But today, the goal of the M&A game is often improving working capital management. It's a complete revolution in the way we look at M&A candidates. What's going on? © 2007 Wiley Periodicals, Inc. [source] Systems Competition, Vertical Merger, and ForeclosureJOURNAL OF ECONOMICS & MANAGEMENT STRATEGY, Issue 1 2000Jeffrey Church We address the possibility of foreclosure in markets where the final good consists of a system composed of a hardware good and complementary software and the value of the system depends on the availability of software. Foreclosure occurs when a hardware firm merges with a software firm and the integrated firm makes its software incompatible with a rival technology or system. We find that foreclosure can be an equilibrium outcome where both the merger and compatibility decisions are part of a multistage game which permits the foreclosed hardware firm to play a number of counter-strategies. Further, foreclosure can be an effective strategy to monopolize the hardware market. [source] Continuity and Change in Mergers and Acquisitions: A Social Identity Case Study of a German Industrial Merger*JOURNAL OF MANAGEMENT STUDIES, Issue 8 2005Johannes Ullrich abstract It is crucial from an employee's point of view to perceive some degree of stability even in times of major organizational change. This paper examines the role of a sense of continuity for organizational identification after an organizational merger. We argue that mergers and acquisitions so often end in failures partly because the change is designed in discontinuous ways and employees do not feel they are doing the same job after the merger as before. Such discontinuous change engenders a critical tension between positive and negative effects of identification that has not yet been fully understood. To deepen the understanding of this tension, in-depth interviews were conducted in a recently merged German industrial company. Based on these qualitative data we demonstrate how features of the post-merger company structure and the way it was implemented may have eroded organizational identification. Finally, we propose a parsimonious model to be tested by future research, in which the sense of continuity is consisting of both observable as well as projected continuity. [source] A Merger of Movements: Peace and Civil Rights Activism in Postwar MiamiPEACE & CHANGE, Issue 2 2010Raymond A. Mohl This article suggests the importance of studying local peace movements in postwar America, as civil rights historians have been doing for two decades. The article also argues that peace and civil rights often reflected the same progressive impulse for social justice,thus the importance of exploring the relationships and interconnections between the two movements. This case study of peace and civil rights in postwar Miami documents the role of politically progressive Jews, especially Jewish women, in forging a social justice movement focused on peace, civil liberties, and civil rights. Mostly newcomers from northern cities, a small group of activist Jews played a major organizational role in local branches of such civil rights and peace groups as the Civil Rights Congress, the Congress of Racial Equality, the Women's International League for Peace and Freedom, the National Committee for a Sane Nuclear Policy, and Women Strike for Peace. For those who chose the activist path, peace and civil rights became inseparable components of a local social justice crusade challenging racial segregation and national Cold War policies. [source] ARNM: Merger between the Australian Rural Nurses and Midwives and Royal College of Nursing, AustraliaAUSTRALIAN JOURNAL OF RURAL HEALTH, Issue 2 2009Debra Cerasa Chief Executive Officer No abstract is available for this article. [source] Union Formation through Merger: The Case of Ver.di in GermanyBRITISH JOURNAL OF INDUSTRIAL RELATIONS, Issue 2 2005Berndt Keller This article is concerned with the recent merger of five German unions to form the new multi-industry union, ver.di. Its focus is on the effects of the merger and on developments in the post-merger phase. The article explores the various internal problems of the new union, concentrating on those that flow from the adoption of a matrix form of organisation. It deals also with the external relations of ver.di, with other unions and with the central organisation of German trade unions, the DGB. Central conclusions here are that the creation of ver.di is likely to exacerbate competition amongst German unions and further erode the position of the peak association. [source] How Issues Become (Re)constructed in the Media: Discursive Practices in the AstraZeneca MergerBRITISH JOURNAL OF MANAGEMENT, Issue 2 2002B. Hellgren In this article, we put forward a novel way of exploring difference and contradiction in merging organizations. We examine how the media (re)constructs meanings in a major cross-border merger. Based on an analysis of press coverage, we attempt to specify and illustrate how particular issues are (re)constructed in media texts through interpretations of ,winning' and ,losing'. We also show how specific discourses are drawn on in this (re)construction. In the merger studied, discourse based on economic and financial rationale dominated the media coverage. Discourse promoting nationalistic sentiments, however, provided an alternative discursive frame to the dominant rationalistic discourse. We argue that the two basic discourses are enacted in three analytically distinct discursive practices in the media: factualizing, rationalizing and emotionalizing. We suggest that the ability of different actors such as top managers to make use of different discursive strategies and resources in promoting their ,versions of reality' in the media (or public discussion) is a crucial avenue for research in this area. [source] Brand Name Audit Pricing, Industry Specialization, and Leadership Premiums post-Big 8 and Big 6 Mergers,CONTEMPORARY ACCOUNTING RESEARCH, Issue 1 2002Andrew Ferguson Abstract This paper investigates brand name, industry specialization, and leadership audit pricing in the wake of the mergers that created the Big 6 and the Big 5 accounting firms. For samples of Australian listed public companies in each of the postmerger years 1990, 1992, 1994, and 1998, we estimate national audit fee premiums for the Big 6/5 auditors and the industry specialists and leaders. We find limited support for the ability of the Big 6/5 to obtain fee premiums over non-Big 6/5 for those industries not having specialist auditors. Nonspecialist Big 6/5 auditors are able to obtain fee premiums over nonspecialist non-Big 6/5 auditors for those industries having specialist auditors. However, this result only holds among the smaller half of our sample. We do not find strong support for the presence of industry specialist premiums in the postmerger years, especially after 1990, using various definitions of industry specialist. We find, at best, limited support for the presence of industry leadership premiums. The evidence suggests that after the Big 8/6 audit firm mergers, some caution is required in generalizing the Craswell, Francis, and Taylor 1995 finding of national market industry specialist premiums. More generally, the study raises questions about the tenuous link between the concept of specialization and national market-share statistics. [source] Discussion of "Brand Name Audit Pricing, Industry Specialization, and Leadership Premiums post-Big 8 and Big 6 Mergers",CONTEMPORARY ACCOUNTING RESEARCH, Issue 1 2002Michael Willenborg First page of article [source] Bank Mergers, Information, Default and the Price of CreditECONOMIC NOTES, Issue 1 2006Margarida Catalão- Lopes This paper addresses the impact of bank mergers on the price of firm credit, through an information channel. It is shown that, as bank mergers imply a wider spreading of information among banks concerning firms' past defaults, they may increase the expected revenue from lending. Therefore, interest rates may decline as long as a sufficiently competitive environment is preserved. A fall in interest rates, in turn, reduces the incentives for firms to strategically default, which reinforces the downward effect on the price of credit. The results are a function of the level of information sharing and of the sensitivity of the default probability to the interest rate. [source] Competition and Integration among Stock Exchanges in Europe: Network Effects, Implicit Mergers and Remote AccessEUROPEAN FINANCIAL MANAGEMENT, Issue 1 2001Carmine Di Noia The economic theory of network externalities and a simple-game theoretical framework are used to explore the issue of competition among stock exchanges and the possibility of consolidation in the European stock-exchange industry. The paper shows the existence of equilibria where exchanges may decide, even unilaterally, to achieve full compatibility through implicit mergers and remote access, specialising only in trading or listing services. Thus the consolidation of European exchanges into one may occur with a welfare-efficient outcome or with a lock-in to a Pareto-inferior equilibrium, due to the network externalities and the different starting points of the various exchanges. ,Implicit mergers' among exchanges together with remote access are always weakly (in half of the cases, strictly) more efficient than the actual competition. This finding also sheds light on the existence and efficacy, of ATS and rating agencies, which can be viewed respectfully as exchanges specialising in trading and listing services. [source] Bank Mergers and Small Firm Finance: Evidence from Lender LiabilityFINANCIAL MARKETS, INSTITUTIONS & INSTRUMENTS, Issue 2 2008James E. McNulty As a merger approaches, the value of repeat business for the target bank can drop sharply, so loan relationships between this bank and small businesses are often disrupted. Small firms sometimes experience serious value destruction as a consequence of this sudden lack of credit. This paper shows that lender liability may result from bank mergers and bankers involved in mergers often engage in aggressive, scorched-earth defense tactics to discourage further litigation. I summarize six lender liability cases to illustrate these points. Bank mergers have been shown to reduce credit availability in a number of studies. Since small firms depend on credit for their daily existence, owners of small firms do have a reason to fear a merger of their bank with a larger institution. Analyzing merger effects with survey data of firms obtained after a bank merger, an empirical strategy used in a number of studies, raises problems since the only firms considered are the ones that survived the bank merger. Suggesting that the problem will cure itself in the long run, an argument advanced in other studies, ignores small firms' daily dependence on credit. In the long run we are all dead. Bank examiners need to evaluate an institution's litigation experience and measure a bank's organizational architecture , its ethical climate. Banks which are repeatedly involved in lender liability lawsuits should be denied future mergers until there is a change in organizational architecture. To assist in evaluating organizational architecture, banks should be required to report their litigation expense on their call reports. Furthermore, regulators should seriously consider the recent suggestion of Carow, Kane and Narayanan (2006) that they take steps to ensure that participants in bank mergers preserve target bank relationships. Otherwise negative effects on small business lending and economic growth will continue as bank consolidation proceeds. [source] Deal Size, Bid Premium, and Gains in Bank Mergers: The Impact of Managerial MotivationsFINANCIAL REVIEW, Issue 3 2007Atul Gupta G14; G21; G34 Abstract Do mergers with greater target relative to acquirer size create more value than mergers with smaller relative sized targets? Do larger bid amounts represent wealth transfers from acquirers or do they signal greater expected merger gains? We hypothesize that the relations among aggregate merger gains, relative size, and bid premiums are asymmetric across mergers made by value-enhancing versus value-reducing managers. We use a large sample of bank mergers to test these predictions and find that the value response to different explanatory variables is asymmetric. Our findings provide new insights into how the market values merger bids. [source] The Impact of Country Diversification on Wealth Effects in Cross-Border MergersFINANCIAL REVIEW, Issue 2 2000Halil Kiymaz G14/G34 Abstract We posit that country diversification via cross-border mergers creates wealth by providing benefits for firms that are not available to their shareholders. We hypothesize that these benefits are inversely related to the extent of co-movement in the economies of the bidder's and target's countries. We examine the wealth effects of U.S. targets and bidders involved in cross-border mergers with firms in other countries during 1982,1991. We show that wealth effects vary, depending on country affiliations of two merging firms, and are inversely related to the degree of economic co-movement between the two countries. [source] Party Mergers and Splits in New Democracies: The Case of South Korea (1987,2007)GOVERNMENT AND OPPOSITION, Issue 4 2010Kyungmee Park This study explores how a party's organizational mode affects its stability in new democracies. A party organization was stable under these three conditions: when the relationship from lower to upper organizations has institutionalized a strong vertical organization mode; when the central party power is concentrated on the leadership; and when the leadership has been safely shifted after elections. In the case of two ruling parties in South Korea, each mode produced differences in party stability. The dissimilar organization modes of two parties resulted in different organizational stability. [source] Institutional Mergers in Australian Higher Educaiton since 1960HIGHER EDUCATION QUARTERLY, Issue 4 2000Grant Harman For the past forty years, institutional mergers have been a major and controversial theme in Australian higher education. Three main phases of major mergers are reviewed with particular attention being paid to reasons for merger, success factors, and longer term results. While merger experiences have often been traumatic for participants and participating institutions, on balance the longer term results have been positive, producing a university system today comprising relatively large and comprehensive institutions, well suited to compete in the new internationally competitive environment. [source] Bank Mergers in Europe: The Public Policy IssuesJCMS: JOURNAL OF COMMON MARKET STUDIES, Issue 3 2000Jean Dermine A very large merger wave in the banking industry has taken place in Europe over the last 15 years. Public policy-makers need to assess how bank mergers , be they domestic intra-industry, across-industry, or cross-border , affect their mission of protecting investors and ensuring financial stability, an appropriate level of competition, and the competitiveness of national firms. Moreover, as the banking world is becoming increasingly international, there is a need to reassess the structure of bank regulation and supervision which has been assumed historically by each nation-state. [source] Mergers and group status: the impact of high, low and equal group status on identification and satisfaction with a company merger, experienced controllability, group identity and group cohesionJOURNAL OF COMMUNITY & APPLIED SOCIAL PSYCHOLOGY, Issue 3 2007Peter Fischer Abstract Although mergers are seen as tools to enhance business in today's global marketplace, they have had a low success rate, possibly because the focus has been on financial and legal issues rather than on the human factors involved. In this respect, focusing on the social psychological variables, social identity theory can provide an explanation for the failure of most mergers. An experiment based on this theory involving mergers between two workgroups was conducted to investigate the effects of merger-related status on participants' psychological responses to the mergers. Thirty-six small groups were assigned to three different status groups (high, low and equal status groups) using the minimal group paradigm. Most negative responses to the merger,in terms of identification with the merger group, satisfaction with the merger, common in-group identity, group cohesion and controllability,were given by the members of the low status groups. Contrary to expectations, status was not related to the performance of the groups. Theoretical and practical implications are discussed. Copyright © 2007 John Wiley & Sons, Ltd. [source] | |||||||||||||||||||||||||||||||||||||||||||||||||