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Target Companies (target + company)

Distribution by Scientific Domains
Business, Economics, Finance and Accounting100%

Selected Abstracts

Corporate Acquisitions and the Operating Performance of Malaysian Companies

JOURNAL OF BUSINESS FINANCE & ACCOUNTING, Issue 3-4 2004
R. Abdul Rahman
We report improvements in long run operating performance for a sample of Malaysian companies that made acquisitions over the period 1988,1992. As the sample selected consists of acquisitions of private target companies, the analysis allows us to focus on the possibility of changes arising from non-disciplinary sources. The reported improvements do not appear to have been achieved by sacrificing the long-term viability of the combined firms in pursuit of shortterm objectives. However, as the target companies in the current study were previously privately-owned businesses, researchers and policy makers should be wary before generalising from these results. [source]

Effects of Private and Public Canadian Mergers

CANADIAN JOURNAL OF ADMINISTRATIVE SCIENCES, Issue 2 2005
Ayse Yuce
Abstract This paper examines the merger announcements of Canadian companies between 1994 and 2000 during an exceptional merger boom. The results show that both the target companies and the acquirer companies obtain significant positive abnormal returns during this time period. Companies that acquire private targets with stock have positive returns; however, acquirers of private firms have significantly higher risk compared with those that acquire public targets, despite nonsignificant differences in returns. Acquirers pay significantly less to acquire private firms than public firms, especially with stock. Overall, the findings suggest there is support for a liquidity discount for private firms, and the market is efficient in valuing firms in asymmetric conditions. Résumé Dans cet article, nous examinons les annonces de fusions des compagnies canadiennes entre 1994 et 2000, période de grand boom de fusion. Les résultats montrent qu'au cours de cette période, les compagnies cibles et les compagnies acquéreuses obtiennent des rendements anormaux positifs. Les entreprises qui achètent des cibles privées avec des actions ont des rendements positifs; cependant, ces entreprises ont des risques considérablement plus élevés par rapport aux entreprises qui achètent des cibles publiques nonobstant des différences négligeables dans les rendements. Par ailleurs, les acquéreurs paient nettement moins pour acheter les entreprises privées que pour acheter les entreprises publiques, en particulier celles qui ont des actions. Dans l'ensemble, les résultats de l'étude révèlent qu'il est nécessaire d'escompter la liquidité pour les entreprises privées et que le marché permet de valoriser les entreprises dans les conditions asymétriques. [source]

Mergers and acquisitions in Japan: Lessons from a Dutch-Japanese case study

GLOBAL BUSINESS AND ORGANIZATIONAL EXCELLENCE, Issue 3 2009
Frits D. J. Grotenhuis
This article deals with lessons learned from mergers and acquisitions in Japan. In general, such combinations are not success stories, since 50,80 percent of them do not bring the benefits that were expected. Several reasons for such failures have been brought up in the literature, but real-life cases of the "how" and "why" are very limited or fragmented, especially in a Japanese context. This study enhances a more integral approach into Dutch-Japanese acquisitions. Based on an in-depth Dutch-Japanese case study and a literature review, it can be concluded that the preparation of mergers and acquisitions with Japanese organizations should be focused on (1) knowledge about the target company and its context, (2) strategic issues, and (3) leadership and cultural issues, in order to prevent culture clashes and misunderstandings, and increase the chances of success. © 2009 Wiley Periodicals, Inc. [source]