Effects Of Mergers Research Articles

New evidence on the impacts of cross-market hospital mergers on commercial prices and measures of quality.

To examine the impact of "cross-market" hospital mergers on prices and quality and the extent to which serial acquisitions contribute to any measured effects. 2009-2017 commercial claims from the Health Care Cost Institute (HCCI) and quality measures from Hospital Compare. Event study models in which the treated group consisted of hospitals that acquired hospitals further than 50 miles, and the control group was hospitals that were not part of any merger activity (as a target or acquirer) during the study period. We extracted data for 214 treated hospitals and 955 control hospitals. Six years after acquisition, cross-market hospital mergers had increased acquirer prices by 12.9% (CI: 0.6%-26.6%) relative to control hospitals, but had no discernible impact on mortality and readmission rates for heart failure, heart attacks and pneumonia. For serial acquirers, the price effect increased to 16.3% (CI: 4.8%-29.1%). For all acquisitions, the price effect was 21.8% (CI: 4.6%-41.7%) when the target's market share was greater than the acquirer's market share versus 9.7% (CI: -0.5% to 20.9%) when the opposite was true. The magnitude of the price effect was similar for out-of-state and in-state cross-market mergers. Additional evidence on the price and quality effects of cross-market mergers is needed at a time when over half of recent hospital mergers have been cross-market. To date, no hospital mergers have been challenged by the Federal Trade Commission on cross-market grounds. Our study is the third to find a positive price effect associated with cross-market mergers and the first to show no quality effect and how serial acquisitions contribute to the price effect. More research is needed to identify the mechanism behind the price effects we observe and analyze price effect heterogeneity.

Vortex Effects in Merging Black Holes and Saturons.

Vorticity has recently been suggested to be a property of highly spinning black holes. The connection between vorticity and limiting spin represents a universal feature shared by objects of maximal microstate entropy, so-called saturons. Using Q-ball-like saturons as a laboratory for black holes, we study the collision of two such objects and find that vorticity can have a large impact on the emitted radiation as well as on the charge and angular momentum of the final configuration. As black holes belong to the class of saturons, we expect that the formation of vortices can cause similar effects in black hole mergers, leading to macroscopic deviations in gravitational radiation. This could leave unique signatures detectable with upcoming gravitational-wave searches, which can thereby serve as a portal to macroscopic quantum effects in black holes.

The moderating effects of the industry competition level and industry diversification on the relationship between the transaction price of mergers and acquisitions and corporate value

This study delved into the moderating impact of industry diversification and competition intensity on the relationship between merger and acquisition transaction prices and enterprise value. Using panel data on corporate mergers and acquisitions in Jordan between 2017 and 2022, this study applied a fixed effect model and performed robust regression to test hypotheses. A total of 402 observations for 108 companies were included in the estimation, and year dummies were incorporated into the model to control for year-specific effects. The findings revealed that transaction prices had a significantly negative impact on the firm’s future value. However, this negative effect was mitigated in the opposite direction if the acquirer faced highly competitive intensity. Moreover, in the case of mergers and acquisitions between companies in different industries, this mitigating effect became even more pronounced. The study carries several theoretical implications. It quantitatively demonstrated that the effects of corporate mergers and acquisitions, particularly the effects of transaction prices, influence the corporation’s value. These effects are moderated by the corporation’s competitive environment and the characteristics of the merger and acquisition, including whether it involves companies in different industries. The research also has significant implications for practical corporate merger and acquisition applications. Practitioners should analyse synergies and fair values with target companies and comprehensively consider the competitive intensity of the company's markets that can be effectively accessed through mergers and acquisitions when anticipating the effects of mergers and acquisitions.

A Study of the Merging Dwarf Galaxy VCC322

Galaxy interactions and mergers can enhance or reduce star formation, but a complete understanding of the involved processes is still lacking. The effect of dwarf galaxy mergers is even less clear than their massive counterpart. We present a study on a dwarf merger remnant in the Virgo cluster, VCC322, which might form a triple system with VCC334 and VCC319. We identify a prominent long and straight tail-like substructure that has a size comparable to its host galaxy VCC322. By comparing the color–color (g − r versus r − H) distribution with simple stellar population models, we infer that the metallicity and stellar age of this tail are Z ⋆ ∼ 0.02 Z ⊙ and t ⋆ ∼ 10 Gyr, respectively. In VCC319, we find a sign of isophotal twisting. This suggests that VCC319 may be subject to tidal interaction. An analysis of the Sloan Digital Sky Survey optical spectra of VCC322 indicates mass- and light-weighted ages of about 109.8 yr and 107.5 yr, respectively, indicating an ongoing star formation activity. However, the star formation in VCC322 seems suppressed when compared to other star-forming dwarfs of comparable stellar masses. Our finding of shock excitation of optical emission lines indicates that interaction-induced shock may contribute to the heating of cold gas and suppression of star formation.

Effective Tax Rate of Sharia Banks in Indonesia: How Profitability Moderates the Effect of Mergers, Size, and Leverage

Effective Tax Rate of Sharia Banks in Indonesia: How Profitability Moderates the Effect of Mergers, Size, and Leverage

Stock liquidity, financial constraints, and innovation in Chinese SMEs

This study investigates the relationship between stock liquidity and firm innovation for publicly traded growing small and medium-sized enterprises (SMEs) in China using both innovation input and output. We collected samples of 785 SMEs from China’s Shenzhen Growth Enterprises Market without the financial industry from 2010 to 2020. The empirical findings demonstrate a significant positive relationship between stock liquidity and both innovation input, as measured by R&D investments, and innovation output, as proxied by patenting activities. A series of robustness tests demonstrate the reliability of our results. Increased liquidity enhances SMEs' innovation mainly by alleviating financial constraints, whereas the mediating effect of mergers and acquisitions (M&A) is not apparent at the firm level. Furthermore, the inhibitory effect of blockholder ownership on firm innovation is weak. Further analysis reveals that this favorable impact can last for at least four years, with manufacturing SMEs benefiting the most. Our study shows that the innovation abilities of SMEs can be enhanced by improving stock liquidity, which is mainly driven by tackling financial constraints.

Horizontal Mergers and Supplier Power

Supplier market power—such as the ability of branded goods suppliers to dictate terms to retailers—is an important feature of many markets. We show that supplier power can counteract the effects of downstream mergers on consumer prices where there are two-part contracts. This is because greater market power allows suppliers to set contracts that internalise partially the impact of the merger on downstream prices. Post-merger, the supplier reduces the per-unit price at which it supplies the merged downstream firms, with the aim of maintaining total industry profitability—and then recoups the profits via a larger fixed fee. We modify the standard upward pricing pressure (UPP) formula to account for the supplier’s response to a horizontal merger in the downstream market, while preserving much of the simplicity of the standard approach.

Mergers and Acquisition of Deposit Money Banks in Nigeria: Empirical Analysis of Contribution to the Economic Growth of Nigeria (2006-2021)

Despite impressive results declared regularly by banks in Nigeria, their contribution to the economic growth of Nigeria has been a subject of mixed results as economic growth has been inconsistent for some time and historically been characterised by oscillations in both positive and negative directions. The Central Bank of Nigeria embarked on a major Mergers and Acquisition of Banks in 2005. The study evaluated the effect of Mergers and Acquisition of Deposit Money Banks’ contribution to Economic Growth of Nigeria. The study adopted ex-post facto research design. Total yearly data for Economic Growth, Total Commercial Bank Lending and Total Commercial Bank Assets were extracted from the Central Bank Statistical Bulletin for the period 2006 to 2021 and they are considered valid and reliable. The study adopted descriptive and inferential statistics and the Auto-Regressive-Distributed Lag-ARDL model was adopted for data analysis.The elasticity of Total Bank Lending- upsurges pertaining to Gross Domestic Product (GDP)- is 0.9951, indicating that ceteris paribus, a 1% rise in is expected to increase (Economic Growth ) by 0.995. The positive nexus was statistically significant at 5% (p = 0.009), showing that Total Bank Lending ( ) impact economic growth positively ( ) in the long run. Furthermore, the study revealed that the Total Bank Assets- depicted a positive nexus with GDP- . The elasticity of pertaining to is 0.5773, indicating that ceteris paribus, a 1% rise in is expected to increase Economic Growth- by 0.5773%. The positive nexus was statistically significant at 0.05 (p = 0.018), hence denoting that Total Bank Assets have a significant individual impact on Economic Growth ( ) in Nigeria in the long run. The study concluded that Total Commercial Bank Lending and Total Commercial bank Assets jointly influenced Economic Growth positively. It is recommended that the policy makers should pay attention to Mergers and Acquisition of Banks and continue to ensure that banks are strong enough to support Economic Growth.

Unveiling the origins of galactic bars: insights from barred and unbarred galaxies

ABSTRACT A significant fraction of local galaxies exhibit stellar bars, non-axisymmetric structures composed of stars, gas, and dust. Identifying key differences between the properties of barred and unbarred galaxies can uncover clues about the conditions for triggering bar formation. We explore the early stages of bar formation in a small sample of disc barred galaxies extracted from the TNG50 cosmological simulation, and compare their properties to those of unbarred galaxies. According to our results, the most important difference between barred and unbarred galaxies is that the former have systematically higher fractions of stellar to dark matter mass in their inner regions, from very early stages and prior to the formation of the bars. They harbour high initial gas content, fostering increased star formation rates and leading to a central mass concentration that grows faster over time compared to unbarred galaxies. Examining the evolution of the halo spin within $10\, \mathrm{ckpc}$ reveals that barred galaxies have higher angular momentum transfer from the disc to the halo. Curiously, both barred and unbarred galaxies share similar initial low values of the halo spin, consistent with those proposed in the literature for bar formation. Furthermore, we evaluate existing stability criteria to capture the complexity of the process, and investigate the effects of mergers, flybys, and environment as possible drivers of bar formation. We find no clear link between mergers and disc instabilities resulting in the formation of bars, even though some of the simulated barred galaxies might have been influenced by these events.

Estimating potential gains from agricultural cooperative mergers

AbstractThis study uses an ex ante data envelopment analysis approach to examine potential gains that US agricultural cooperatives may accrue from mergers. Empirical estimations utilize data from CoBank, a lender to cooperatives, consisting of 749 midwestern agricultural cooperative observations from 2011 to 2015. Potential overall merger effects are decomposed into learning effects, scope effects, and scale effects. Findings show that less other unique merger costs such as legal fees, there are significant overall potential gains in profits from mergers. Relatively smaller merged cooperatives will accrue more gains in profits compared with their larger counterparts [EconLit Citations: Q13, D20, G34].

Understanding Community Capacity for Bottom-up Management of Mount Hakusan UNESCO Biosphere Reserve

The aim of the study was to understand the potential of Shiramine villagers for bottom-up administration of Mount Hakusan UNESCO Biosphere Reserve (MHBR). We investigated the various aspects of community capability using data from numerous sources, including interviews, surveys, and published reports. 23 people participated in a survey. Results has showed that the issues such as depopulation (35%), accessibility problems (especially for the elderly), difficulties with tourism, and the effects of school and municipal mergers were the biggest concern for the locals. However, the biggest values of Shiramine was rated as interpersonal interactions (56%), followed by the environment and traditional culture. Most of the residents expressed the high level of happiness by living inside the community (87%), which was related to the strong community bonds and natural surroundings.
 The survey showed the presence of a variety of jobs, such as farmers, students, freelancers, housewives, and people working in administrative and governmental positions. These results showed a wide range of community involvement and the possibility of utilizing this diversity to boost the bottom-up management strategy. For the effective and sustainable management of BR, developing inclusivity and active participation, by using variety of talents and knowledge will play crucial role.
 Keywords: Community development, UNESCO Biosphere Reserve, Bottom-Up approach, Regional management, Sustainability

MERGING LAGGARDS

Abstract We argue that mergers among market laggards (new entrants or innovation challengers) should be treated differently than those involving leaders (established players or first-mover innovators). We show that these mergers can be rivalry-enhancing, either by accelerating entry or promoting innovations, leading to lower quality-adjusted prices and higher consumer surplus. This is more likely to happen when entry (or innovation) costs are relatively high, so that entry (or innovation) is profitable only when it is limited to a few players. In these circumstances, if laggards enter, they will do so probabilistically and inefficiently since each of them would have to condition its entry to scenarios in which other laggards stay out, which may not be possible since entry decisions are secret. By removing or mitigating this coordination failure, a merger among laggards may lead to more entry (or innovation). Such a merger will also be more likely to benefit consumers when the products of laggards and leaders are sufficiently differentiated—that is, when competition is not too intense absent the merger. Importantly, we find that in the presence of fixed entry costs and endogenous entry, fixed cost synergies are relevant for assessing the welfare effects of mergers. These efficiencies enhance the social value of mergers among laggards insofar as they make entry into the market for the merged entity less costly, thereby expanding the spectrum of products available to consumer and increasing their welfare.

The value of transition periods: Do city-county mergers promote economic development?

ABSTRACT The effects of city-county mergers on economic development have been the subject of debate in theory and practice. Based on the subdivision of the fiscal relationship between cities and merged counties, this study uses data from 2000 to 2019 and employs a staggered difference-in-difference model. The results show that counties may experience improved economic performance after mergers by enjoying a de facto fiscal system transition period. In particular, the merged areas belonging to the county-level city administrative level or under the province-managing-county fiscal system have significantly benefited from the transition periods. These findings suggest that it is important for policymakers to fully consider the transition period’s setting, which can help reduce the friction cost in the adjustment of administrative divisions and ensure the smooth development of the economy.

Competition effects of vertical integration in container ports: assessing the European Commission decisional practice

PurposeContainer liner shipping companies started expanding their business by investing in container port terminals in the late 1990s. This market entry results in an extensive presence of vertically integrated liners and terminals. This study aims to explore the competition effects of this vertical integration trend based on a regional (European) analysis. In particular, it extracts lessons from the European Commission (EC) cases on the competition effects of vertical integration. The critical analysis of the cases examined at the institutional level intends to reach conclusions on whether liner–terminal vertical integration harmed or advanced competition in the relevant markets and/or the extent that there is a need to revise the current policy practices.Design/methodology/approachThis study critically assesses the EC’s decisional practices in port container terminal vertical mergers in the last 25 years (1997–2021). Based on a literature review comparing maritime and competition economists' perspectives, it reviews the types of mergers examined, the methodology followed for relevant market definition and calculation of market shares and the estimated competition effects. The Hamburg–Le Havre area is the port range used as a case study for comparing the decisional practice with actual market developments. These container ports serve the greatest consuming market of final and intermediate goods in Europe and are gateways to Central and Eastern Europe.FindingsThe assessment identifies a need for expanding the investigation as a precondition for reaching conclusions on both the anti- and pro-competitive effects. First, only a limited number of transactions have been notified to the EC. Second, the empirical research identified a gap in this process, as there were no decisions (phase I) on vertical mergers between 2008 and 2016. Third, the exante assessment has not applied a phase II in-depth analysis to any case due to the absence of competition concerns. Finally, due to the absence of complaints, there is a lack of any ex post assessment of the effects of vertical integration.Research limitations/implicationsThis assessment is important for understanding the current and emerging features of intra-port and inter-port competition and the potential effects that the continuation and expansion of liner companies' vertical integration strategies will have along maritime supply chains. It also contributes to the broader discussion on liner companies' strategies, such as the research and policy-making efforts around the globe to understand the impact of both vertical and horizontal integration.Practical implicationsThese discussions are critical for a diversity of businesses that use liner shipping services or provide facilities and services to container shipping lines or ports. They are important for the interests of customers and consumers as they could inform any needed re-visiting of competition policy to protect from the dominance of any market developments that would lead to conditions limiting competition. Expanding analysis on the competition effects of non-notified mergers would help a better understanding of market changes.Social implicationsEnhancing competition and limiting monopolies is valuable from a consumer's perspective. This is more so in the case of maritime trade that serves the needs of societies. The study contributes by generating a better understanding of how decision-makers have worked towards that direction and what realignments are worthy.Originality/valueThere are no previous comprehensive reviews and analyses of the ways that policy-makers at the regional level have addressed the competition effects of vertical integration strategies of liner shipping companies when enhancing competition is valuable from a consumer perspective. Comparing maritime economists and competition, the study, via its literature review, also offers a comparison of maritime and competition perspectives on these competition effects, allowing positioning of how effective decisional-making practices have been.

The distribution of stellar orbits in eagle galaxies – the effect of mergers, gas accretion, and secular evolution

ABSTRACT The merger history of a galaxy is thought to be one of the major factors determining its internal dynamics, with galaxies having undergone different types or mergers (e.g. dry, minor, or major mergers) predicted to show different dynamical properties. We study the instantaneous orbital distribution of galaxies in the eagle simulation, colouring the orbits of the stellar particles by their stellar age, in order to understand whether stars form in particular orbits (e.g. in a thin or thick disc). We first show that eagle reproduces well the observed stellar mass fractions in different stellar orbital families as a function of stellar mass and spin parameter at z = 0. We find that the youngest stars reside in a thin disc component that can extend to the very inner regions of galaxies, and that older stars have warmer orbits, with the oldest ones showing orbits consistent with both hot and counter-rotating classifications, which is consistent with the trend found in the Milky Way and other disc galaxies. We also show that counter-rotating orbits trace galaxy mergers – in particular dry mergers, and that in the absence of mergers, counter-rotating orbits can also be born from highly misaligned gas accretion that leads to star formation.

Scenario analysis of the impact of ANSP mergers on traffic distribution and congestion

Economic efficiency gains are one potential advantage that Air Navigation Service Provider (ANSP) mergers might bring to the European Air Traffic Management system. An ANSP merger might also affect the use of airspace and consequently the level of congestion. In this paper, we analyze possible effects of an ANSP merger on traffic distribution i.e., route choices of an airline, congestion levels in different parts of the airspace, and consequences for airline's costs. We analyze four scenarios for an OD-pair market with a monopoly airline and two neighbouring ANSPs. For each scenario, we consider both cases: two ANSPs operate as competing providers and set different unit rates for the airline, and a merged ANSP operates as a monopoly service provider that sets a uniform unit rate for the airline. In all scenarios, we assume that the ANSPs are regulated based on a full cost recovery scheme. The numerical examples show that the different unit rates create an incentive for the airline to take detours in order to avoid the airspace with the higher en-route charge, resulting in additional fuel burn and emissions. Meanwhile, the uniform unit rate incentivizes the airline to choose the shorter route more often, leading to higher congestion levels on the shorter route and higher total congestion cost for the airline. However, in our numerical example, the decrease in the total distance-related cost outweighs the increase in the total congestion cost, leading to higher airline profits. We conclude that an ANSP merger that leads to a uniform unit rate can bring positive effects to airlines even if its potential efficiency gains are not taken into account.

The impact of city-county merger on firm-level total factor productivity-Evidence from China.

This study examines the potential negative effects of city-county mergers on firm-level total factor productivity (TFP). A theoretical framework is established to explain how city-county mergers could lead to higher institutional and non-institutional costs, thus influencing government decision-making and resource allocation. As a result, firms operating in the economy will absorb these costs and adjust their behavior accordingly. By employing Chinese firm-level data in a difference-in-differences approach, this study finds a statistically significant negative effect of transitioning county-level cities into municipal districts (TCD) on firm-level productivity. Additionally, this study identifies the financial situation of reformed governments and the internal environment of firms as two mechanisms through which the TCD reform influences firm-level productivity.

Investigation of the Pre-Post-Merger Effects on the Financial Performance of Select Banks in India

Mergers and Acquisitions (M&A) have evolved as a tactical instrument for consolidating Financial Institutions and Banks in India, aiming to strengthen the capital base, extend business operations, and ensure financial stability, as part of the government's initiative to fortify the banking system, enhance its efficiency, and provide robust financial services. The mega-merger announcement on August 30, 2019, led to the amalgamation of ten public sector banks into four major banks. This research investigates the impact of mergers on the financial health of four bidder banks involved in the mega-merger from 2016–17 to 2022–23, utilizing standard accounting ratios, paired sample t-test, and an overall performance average analysis. The three years prior to and three years after the merger are compared in the study for accounting-based effectiveness. The investigation discovers a combined effect of mergers on overall financial performance ratios. Notably, Punjab National Bank demonstrates momentous improvements in ‘Capital Adequacy Ratio’ and ‘Total Loan to Total Deposit Ratio’. Canara Bank notably impacts ‘Debt-to-Equity Ratio’ and ‘Non-Performing Loans to Total Loans’. Concurrently, the Union Bank of India observes a significant effect on the ‘Debt-to-Equity Ratio’, while the Indian Bank exhibits a substantial change in ‘Capital Adequacy Ratio’ between the pre- and post-M&A time span.

Research on the Financial Synergy Effect of Mergers and Acquisitions of Heavy Industry Enterprises in Liaoning Province—Take Dalian Heavy Industry's Acquisition of Jiangsu Lingang Company as an Example

Research on the Financial Synergy Effect of Mergers and Acquisitions of Heavy Industry Enterprises in Liaoning Province—Take Dalian Heavy Industry's Acquisition of Jiangsu Lingang Company as an Example

Analyzing the impact of mergers on stock prices in the banking sector: An implication for strategic merger planning and stakeholder communication

This research delves into the intricate effects of mergers and acquisitions (M&A) on stock prices within the Saudi Arabian banking sector, employing the event study methodology (ESM) to examine both short-term and long-term impacts on stock valuations. The study meticulously calculates expected and abnormal returns (ARs) around merger events, shedding light on the significant influence these corporate actions exert on market perceptions and investor behavior. The methodology encompasses an analysis of daily stock price data before and after merger events, providing a detailed view of market reactions. Key findings reveal an immediate positive market response to merger announcements, driven by the anticipation of synergistic benefits, alongside diverse long-term stock price effects that underscore the complex relationship between initial expectations and actual merger outcomes. The research concludes that strategic merger planning and effective communication with stakeholders are crucial for realizing the anticipated benefits of mergers. By offering new insights into the sector-specific and regional dynamics that affect M&A outcomes, this study enhances understanding of the significant implications for investors, financial institutions, and policymakers engaged with the Middle Eastern financial markets.