Ownership Structure, Managerial Turnover and Takeovers PDF Download

Author: Jay Dahya
Publisher:
ISBN:
Category :
Languages : en
Pages : 24

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Book Description
This article investigates the impact that successful hostile and friendly takeovers have on the rates of top management change for U.K. target firms. The results shows that hostile takeovers are associated with a greater degree of both top executive and top team forced departure rates compared to that of friendly takeovers. Furthermore, prior to takeover, hostile targets have lower abnormal returns, lower profitability, higher debt, lower managerial ownership and a high ownership stake held by external block holders relative to friendly targets. The results give further support to the disciplining role of the hostile takeover.

Author: Florian Jung
Publisher: GRIN Verlag
ISBN: 3346543234
Category : Business & Economics
Languages : en
Pages : 96

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Book Description
Master's Thesis from the year 2021 in the subject Business economics - Business Management, Corporate Governance, grade: 2,0, FH Vienna, language: English, abstract: Which factors impact the likelihood and extent of employee turnover after M&A transactions? What measures can be taken during post-merger integration to retain key players? This master thesis gathered and evaluated knowledge of experts in the field of M&A regarding employee turnover and employee retention. The yearly number of worldwide M&A transactions increased from 1990 to 2019 by nearly five times. The yearly average increased steadily over the last decades. The 1990’s averaged about 20.500 deals, the 2000’s 37.000 deals and the 2010’s 46.500 deals per year. (Thomson Financial, Institute for Mergers, Acquisitions and Alliances [IMAA], 2020) Smith (2002) analyzed 49 studies regarding the success rates of organizational change. Among them were also 9 studies concerning M&A transactions. The median success rates for these transactions stated at 33%, while the median success rate for all analyzed studies in different forms of organizational change, ranging from strategy deployment to general culture change or software implementation, also was 33%. It should be mentioned that the measurements of success for most forms of organizational change are varying or sometimes not disclosed at all and therefore these results should be taken with caution. A valuable takeaway of Smith’s analysis though definitely should be the assumption that change in organizations is very often accompanied by a myriad of hurdles and challenges. More recent academic work also backs that statement. Malmendier, Moretti, and Peters (2018) looked at stock performance of winning and losing bidders. They conclude that the entities that lost takeover bids on average outperform the winning bidders by 24 to 37% over the next 3 years. King, Dalton, Daily, and Covin (2004) come to the conclusion that on average M&A activity does not lead to improvements of financial performance for the acquiring company. Instead, their results show either no or a slightly negative change in performance post-merger.

Author: Walter Novaes
Publisher:
ISBN:
Category :
Languages : en
Pages :

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Book Description
How do shareholders perceive managers who lever up under a takeover threat? Increasing leverage conveys good news if it reflects management's ability to enhance value. It conveys bad news, though, if inefficient managers are more pressured to lever up than the efficient ones. This paper demonstrates that negative updating may prevail. Managers who lever up to end a takeover threat may thus commit to enhance value and yet increase their chances of being replaced by their shareholders. The model provides implications for the dispersion of intraindustry leverage and for the stock price reaction to debt-for-equity exchanges.

Author: Wayne H. Mikkelson
Publisher:
ISBN:
Category :
Languages : en
Pages :

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Book Description
Among U.S. industrial companies that are not acquired we compare top management turnover between an active takeover period (1984-1988) and a less active period (1989-1993). For firms in the lowest quartile of performance, as measured by operating income scaled by assets, 33% subsequently experienced complete turnover of the holders of the top three offices in the active takeover period and 17% experienced complete turnover in the less active takeover period. A regression analysis that controls for various possible determinants of management turnover shows that turnover and performance are related only in the active takeover period. We conclude that managerial discipline is linked to takeover activity in the economy.

Author: Sanjai Bhagat
Publisher: MIT Press
ISBN: 9780262524384
Category : Business & Economics
Languages : en
Pages : 138

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Book Description
An investigation of the relationships among takeovers, takeover defenses, management turnover, corporate performance, corporate capital structure, and corporate ownership performance.

Author: Robert F. Bruner
Publisher: John Wiley & Sons
ISBN: 1118436393
Category : Business & Economics
Languages : en
Pages : 1056

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Book Description
A comprehensive guide to the world of mergers and acquisitions Why do so many M&A transactions fail? And what drives the success of those deals that are consummated? Robert Bruner explains that M&A can be understood as a response by managers to forces of turbulence in their environment. Despite the material failure rates of mergers and acquisitions, those pulling the trigger on key strategic decisions can make them work if they spend great care and rigor in the development of their M&A deals. By addressing the key factors of M&A success and failure, Applied Mergers and Acquisitions can help readers do this. Written by one of the foremost thinkers and educators in the field, this invaluable resource teaches readers the art and science of M&A valuation, deal negotiation, and bargaining, and provides a framework for considering tradeoffs in an effort to optimize the value of any M&A deal.

Author: Bjørn Espen Eckbo
Publisher: Academic Press
ISBN: 0123846900
Category : Business & Economics
Languages : en
Pages : 1088

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Book Description
A selection of republished corporate finance articles and book chapters that can serve as an advanced corporate finance supplementary text for courses that use no textbooks. Combining convenience and an affordable price with retypeset pages and a high-quality index, the 600 pages of volume two, "Bidding Strategies, Financing, and Corporate Control", focus on a range of special topics, ranging from theories and evidence on strategic bidding behavior (offer premiums, toeholds, bidder competition, winner's curse adjustments, and managerial overconfidence), issues arising when bidding for targets in bankruptcy auctions, effects of deal protection devices (termination agreements, poison pills), role of large shareholder voting in promoting takeover gains, deal financing issues (such as raising the cash used to pay for the target), managerial incentive effects of takeovers, governance spillovers from cross-border mergers, and returns to merger arbitrage. Including an index and new introduction, this volume will simplify and facilitate students' interaction with new concepts and applications. - Provides a status report about modern scientific evidence on corporate takeovers - Exposes students to new methods and empirical evidence while reading high quality primary material - Offers a concise and cost-efficient package of journal and book articles for advanced corporate finance students

Author: Patrick A. Gaughan
Publisher: John Wiley & Sons
ISBN: 0470881216
Category : Business & Economics
Languages : en
Pages : 674

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Book Description
Modern restructuring techniques for a global business landscape Mergers, Acquisitions, and Corporate Restructurings, Fifth Edition carefully analyzes the strategies and motives that inspire M&As, the laws and rules that govern the field, as well as the offensive and defensive techniques of hostile acquisitions. Incorporates updated research, graphs, and case studies on the private equity market, ethics, legal frameworks, and corporate governance Expanded and updated chapters on corporate governance, joint ventures and strategic alliances and valuation Expanded global treatment of the field of M&A Shows business managers and financial executives how corporate restructuring can be used successfully in any company Looks at the most effective offensive and defensive tactics in hostile bids Reviews the impact on shareholder wealth on a variety of takeover actions Packed with the most up-to-date research, graphs, and case studies, Mergers, Acquisitions, and Corporate Restructurings, Fifth Edition provides a fresh perspective on M&As in today's global business landscape.

Author: Robert W. Kolb
Publisher: SAGE
ISBN: 1412916526
Category : Business & Economics
Languages : en
Pages : 2593

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Book Description
This encyclopedia spans the relationships among business, ethics and society, with an emphasis on business ethics and the role of business in society.

Author: Lionel Melka
Publisher: John Wiley & Sons
ISBN: 1118440013
Category : Business & Economics
Languages : en
Pages : 325

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Book Description
A wave of corporate mergers, acquisitions, restructuring, and similar transactions has created unprecedented opportunities for those versed in contemporary risk arbitrage techniques. At the same time, the nature of the merger wave has lent such transactions a much higher degree of predictability than ever before, making risk arbitrage more attractive to investors. Surprisingly, there is little transparency and instruction for investors interested in learning the latest risk arbitrage techniques. Merger Arbitrage – A Fundamental Approach to Event-Driven Investing helps readers understand the inner workings of the strategy and hedge funds which engaged in this investment strategy. Merger arbitrage is one of the most commonly used strategies but paradoxically one of the least known. This book puts it in the spotlight and explains how fund managers are able to benefit from mergers and acquisitions. It describes how to implement this strategy, located at the crossroad of corporate finance and asset management, and where its risks lie through numerous topical examples. The book is split into three parts. The first part, examining the basis of merger arbitrage, looks at the key role of the market in takeover bids. It also assesses the major changes in the financial markets over recent years and their impact on M&A. Various M&A risk and return factors are also discussed, alongside the historical profitability of merger arbitrage, the different approaches used by fund managers and the results of academic studies on the subject. The second part of the book deals with the risk of an M&A transaction failing in terms of financing risk, competition issues, the legal aspects of merger agreements and administrative and political risks. The third part of the book examines specificities of M&A transactions, comprehensively covering hostile takeovers and leveraged buyouts. Each part contains many recent examples and case studies in order to show how the various theories and notions are put into practice. From researching prospects and determining positions, to hedging and trading tactics, Lionel Melka and Amit Shabi present the full complement of sophisticated risk arbitrage techniques, making Merger Arbitrage a must read for finance and investment professionals who want to take advantage of the nearly limitless opportunities afforded by today’s rapidly changing global business environment. The book builds on its authors’ diverse backgrounds and common experience managing a merger arbitrage fund, providing readers with an enriching inside view on M&A operations. Translated by Andrew Fanko and Frances Thomas