Effects Of Mergers Research Articles

Effect of gas percentage during minor mergers on the star formation in galaxies

AbstractWe study the effect of minor mergers on star formation using simulations. We use GADGET4 code which has both collisionless and hydrodynamical particles. Our goal is to establish a relation between gas percentage present in the galaxies and the star formation in the merged galaxy. We use 1:10 minor mergers and we run the isolated simulations with varying gas percentages in the primary galaxy. We observe that the gas particles convert into stars due to the impact of the minor merger. As the gas percentage increases in the primary disk of the galaxy, more number of stars are formed. We also observed that newly formed star particles settle down in the disk of the primary galaxy and increase the thickness of the disk. We also observe that the thickness of the stellar disk containing the old stars also increases due to the impact of the merger.

Impact of Mergers and Acquisitions on the Mental Health and Overall Wellbeing of the Employees Involved – A Literature Review

Strategic Alliances, like mergers and acquisitions are one of the options organizations undertake to grow.A merger involves merging or coming together of two organizations and acquisition is a process when oneorganization acquires another of its interest.1 Organizations enter into strategic alliances to compete in theassociated market and expand their share in the market, to enter into new geographical areas, to add newproduct profiles, to capitalize the newer technologies available and also add to their financial competencies.This research paper reviews various literature available on the effect of mergers and acquisitions on themental wellbeing and overall wellbeing of the employees associated with the organizations undergoingthese major changes. Mergers and acquisitions follow three stages and each stage flows into the other, thereare various factors which play a very critical role for enabling the mergers and acquisitions to achieve whatthey set to achieve at each stage. There are various hard factors like the financial parameters, adequateplanning for financial and operational integration by capitalizing on the previous experience, assessment ofrisks and strengths, eliminating excess payments, and various soft issues ,like the cultural issues, ensuringextended assurance from the leadership, facilitating proper and timely communication to avoid unwanteddissemination of information, ensuring adequate speed for the implementation plans , ensuring visible andaccountable steps like designating an integration manger to handle all the dilemmas in context to the humanresources, implementing various reporting structures and facilitating the combined ways to deal with criticalissues, collaborating with the critical teams in the process of integration, efficiently managing the variousissues pertaining to human resources to ensure employee motivation and sustainability and implementingvarious plans to enable and ensure the proper amalgamation of the cultures of the organizations involved tominimize and eliminate the negative effects on the mental wellbeing and ensure the overall wellbeing of theemployees involved in the process.1

Synergies in mergers and acquisitions in the copper mining industry

Motivation: The results of the research shall broaden the knowledge required for interpretation of synergy effects in the mineral mining sectors. The results obtained shall be used for further research when developing procedures for analysis and evaluation of the effects of mergers and acquisitions in the copper ore mining sector and may also be used by the management of an acquiring party involved in mergers and acquisitions in the copper mining sector.
 Aim: The aim of the research, the results of which has been presented in this article, was to identify areas of processes concerning operations and costs as possible sources of synergies in the merger and acquisition processes in the copper ore mining sector. A critical review of literature about the subject as well as desk research have been used to make the study.
 Results: The obtained results confirm the need for synergy effects, in the areas of both operations and costs, to be considered in the processes of mergers and acquisitions in the copper ore mining sector. Taking into account the strategy map and the cost structure in the copper mining sector, we may conclude that the costs of mining and milling are the key parameters of the cost structure (in relation to overheads) and they should be considered as the specific subject of due diligence, because apparently, this is the area where the greatest synergy value may be achieved.

The Stock Market Reaction to Mergers and Acquisitions: Evidence from the Banking Industry

This paper focuses on the effect of mergers and acquisitions (M&As) announcements on the stocks of Latin American banks and their rivals between 2000 and 2019. We evaluate two impacts of M&A announcements: impacts on cumulative abnormal returns (CAR) and impacts on event-induced variance (EIV). We use the GARCH-based event-study method, finding that acquirers and target banks have a statistically significant CAR and that their rivals and targets are not affected by M&A announcements. We observe that EIV is negative for acquirers, targets, and rivals. Finally, in a robustness exercise, we estimate a multivariate GARCH model, finding that the results remain qualitatively equal.

Effects of Mergers and Acquisitions on the Financial Performance of Acquirer Banks: An Evidence-based Study from Pakistan

While facing the challenges of globalization and technological advancements, firms consistently aspire to gain a competitive edge over their adversaries. The objective of this study is to investigate whether mergers and acquisitions improve the financial performance of acquirer banks. For this purpose, data is collected from eleven banks listed on Pakistan Stock Exchange (PSX) that underwent the process of merger and acquisition between 2009 and 2012. The financial performance of these banks is analyzed with the assistance of financial ratios. Additionally, paired sample t-test is applied on the ratios to find out the statistics whether significant or not after the enhancement of the banks’ financial performance. Out of the six financial ratios, only three financial ratios showed significant change. Furthermore, two ratios improved, while one ratio deteriorated. The remaining three ratios were not statistically significant. Thus, this paper is useful for firms, financial organizations and banks since it provides information that would help them make informed financial decisions.Keywords: acquisitions, assets quality, financial performance, leverage, liquidity, mergers, profitability

A DEA approach for merging dairy farms

This paper proposes a model for determining the most advantageous merger within a set of dairy farms. It uses data envelopment analysis (DEA) to estimate the total technical efficiency improvement that the merger would produce and for decomposing it into a learning effect and a pure merger effect. A design of experiments has also been carried to test the effects of various factors (the total number of farms, the standard deviation of herd size, the percentage of farms exhibiting increasing returns to scale, the standard deviation of the current technical efficiency of the farms) on different response variables (the percentage of farms involved in the merger, the reduction of herd size and the efficiency improvement obtained by the merger). The results show that the disparity in the herd size of the farms in a region and the percentage of farms that exhibit increasing returns to scale increase the number of farms that enter into the most advantageous merger. The disparity of herd size also increases the number of cows that are not needed after the merger. Finally, the expected efficiency improvement increases with the total number of farms.

A structural estimation of spatial differentiation and market power in input procurement

AbstractWe estimate the degree of spatial differentiation–primarily driven by transportation costs–among downstream firms that buy corn from upstream farmers and examine whether such differentiation softens competition enabling buyers to exert market power (defined as the ability to pay a price for corn that is below its marginal value product net of processing cost). We estimate a structural model of spatial competition using corn procurement data from the U.S. state of Indiana from 2004 to 2014. We adopt a strategy that allows us to estimate firm‐level structural parameters while using aggregate data. Our results return a transportation cost of 0.5 cents per bushel per mile (10% of the corn price under average conditions), which provides evidence of spatial differentiation among buyers. The estimated average markdown is $0.67 per bushel (13% of the average corn price in the sample), of which $0.49 is explained by spatial differentiation and the rest by the fact that firms operated under binding capacity constraints. Finally, we evaluate the effect of hypothetical mergers on input markets and farm surplus. A merger between nearby ethanol producers eases competition, increases markdowns by 18%, and triggers a sizable reduction in farm surplus. In contrast, a merger between distant buyers has negligible effects on competition and markdowns.

Firm Size and Pharmaceutical Mergers: A Cross-National, Cross-Sector Perspective

Mergers in the pharmaceutical sector warrant special scrutiny not only because of concerns over affordability of medicines, but also because the institutional details of pharmaceutical markets complicate the economic analysis of merger effects. Standard anti-trust analysis of mergers, in pharmaceuticals as in other industries, focuses on the proposed merger’s potential to raise prices or reduce innovation by eliminating potential competitors in individual product markets defined by substitutability and geography. Ignored by this exclusive focus on individual markets is the potential for horizontal mergers to increase market power though leverage and cross-market effects enabled by large portfolios that span individual markets. The thesis of this paper is that leverage and cross-market effects exist in pharmaceutical markets and can be exacerbated by mergers because larger firms have bargaining leverage and other advantages in dealing with reimbursement, marketing and selling in pharmaceutical markets. The relevant institutional details — and the potential risks to competition — differ across countries and between originator and generic drugs. An earlier paper outlined these potential cross-market effects in mergers of originator pharmaceutical firms in the US. This paper extends the analysis to examine how far similar cross-market effects are also a concern in mergers of originator firms in Europe and for generic firms in the US and Europe. It concludes that cross-market effects are potentially of greatest concern for originator pharmaceutical mergers and, to lesser extent, for generics mergers in the US, because the US healthcare system relies primarily on market forces rather than regulation to assure consumer welfare. While cross-market concerns could arise in pharmaceutical mergers in Europe, they are substantially mitigated by various regulatory features of European pharmaceutical markets.

Upward pricing pressure in mergers of capacity‐constrained firms

AbstractMerging firms regularly argue that mergers involving capacity‐constrained firms are unlikely to be anticompetitive, because a capacity‐constrained firm does not represent a meaningful competitive constraint on its rivals. We construct a modified notion of upward pricing pressure called ccGUPPI, or capacity‐constrained GUPPI, which accounts for upward pricing pressure from binding capacity constraints, in addition to standard merger effects. We show that the pricing pressure terms underlying ccGUPPI, calculated using premerger data, are sufficient to determine whether a merger of capacity‐constrained firms will increase price, irrespective of the functional form of demand. Further, using Monte Carlo simulation, we show that ccGUPPI is generally a useful proxy for actual price effects, with lower informational requirements than full merger simulation.

Long‐run Effects of Local Government Mergers on Educational Attainment and Income*

AbstractLocal government mergers are an important policy issue in many countries, yet empirical evidence of the effects of merging and of local government size on the production and quality of local public services is scarce. We use the spatial and temporal variation in forced mergers between cities and their surrounding local governments in Norway to provide quasi‐experimental evidence of the effect on long‐run student outcomes. We find that the mergers increase students’ educational attainment by about 0.1 years and income by about 4%, suggesting that mergers improve long‐run student outcomes through increased school productivity.

Mergers, Acquisitions, and Corporate Financial Performance in the Financial Technology Inclined Quoted Insurance Companies in Nigeria

The research empirically examines effect of Mergers and Acquisitions on Corporate Financial success of Quoted Insurance Companies in Nigeria. It has become expedient in the face of the drastic increase in Mergers and Acquisitions activity in recent decades and the fact that there has been very little empirical evidence of positive wealth effects and particularly the success of M&A in the insurance sector. This has arisen because most studies in Nigeria have rather focused on the banking sector. Data was obtained from Quoted Insurance Companies from 2003 to 2016 and the Regression Techniques were employed in the study. The result indicated that there exists a positive effect of M&A on Corporate Financial Performance of Insurance Companies. It revealed that a unit increase in merger led to about 4% increase in the Corporate Financial Performance of the merged firms. In effect, a unit increase in Earnings after Merger actually led to about 8% increase in the Corporate Financial Performance of the same firms. The study hereby recommend that Insurance Companies should look at issues of Claims settlement, Product Development and Branding while the National Insurance Commission (NAICOM) should look into the education of insurable clients as well as appropriate polices that would drive Insurance penetration in Nigeria.

Labor Market Concentration and Worker Contributions to Health Insurance Premiums.

In concentrated labor markets, where workers have fewer employers to choose from, employers may exploit their monopsony power by contributing less to workers' health benefits. This study examined if labor market concentration was associated with higher worker contributions to health plan premiums. We combined publicly available data from the Census to calculate labor market concentration and the Medical Expenditure Panel Survey Insurance/Employer Component to determine premium contributions from 2010 to 2016 for metropolitan areas. After controlling for year fixed-effects and market characteristics, we found that higher labor market concentration was associated with higher worker contributions to health plan premiums, lower take-home income, and no change in employer contributions to premiums, consistent with the hypothesis that greater labor market concentration is associated with less generous health benefits. When evaluating the effects of mergers and acquisitions on labor markets, regulatory agencies should critically assess worker contributions to health insurance premiums.

Consequences of Mergers and Acquisitions on Firm Performance: A Sector-Level Study of Public Listed Companies in China

As the motives of mergers and acquisitions (M&As) are different across industries, this study examined the synergy effects of technological gains and capital intensity on the operating performance of the acquiring firms after M&As. The sample comprised 434 completed M&As initiated by Chinese firms listed on the Shanghai and Shenzhen Stock Exchanges with 2,170 observations over the years 2012 to 2016. On average, the firms performed better after M&As. The results show that the operating performance of public health, information technology, telecommunication and financial service firms within the high-technology sector increased after M&As. This suggests that high-technology firms can benefit from M&As through a more extensive knowledge base and financial synergy. We also found that good governance characterized by board independence affects firm performance positively. Therefore, the acquisition of technology through M&As could be an essential corporate growth strategy in the Chinese capital market, which is transforming from a state-controlled economy to a more market driven one. The findings provide useful insights to both corporate players and policy-makers on the types of M&As that stand higher chances to generate positive outcomes and those that need extra measures and further scrutiny to prevent inefficient allocation of resources.

Fountains and storms: the effects of AGN feedback and mergers on the evolution of the intracluster medium in the romulusc simulation

ABSTRACT The intracluster medium (ICM) is a multiphase environment, dynamically regulated by active galactic nuclei (AGN), the motions of cluster galaxies, and mergers with other clusters or groups. AGN provide a central heating source capable of preventing runaway cooling flows and quenching star formation, but how they achieve this is still poorly understood. We investigate the effects of AGN feedback and mergers on the ICM using the high-resolution romulusc cosmological simulation of a 1014 M⊙ galaxy cluster. We demonstrate that AGN feedback regulates and quenches star formation in the brightest cluster galaxy gently, without any explosive episodes, and co-exists with a low entropy core with sub-Gyr cooling times. In contrast, the merger disrupts the ICM structure, heating the core and cutting off the supply of low-entropy, infalling gas that until then fuelled the AGN. We find that this removal of the low-entropy phase correlates with the ratio tcool / tff increasing above 30 in the core, matching observations that cooling gas is only found in clusters where this ratio is 5–30. Importantly, we find that evolution in the inner entropy profile and the ratio of cooling to free-fall time-scale are directly connected to the quenching of star formation in the BCG. This is in line with previous results from idealized simulations and confirmed here within a fully cosmological simulation for the first time.

VINTERGATAN – II. The history of the Milky Way told by its mergers

ABSTRACT Using the VINTERGATAN cosmological zoom simulation, we explore the contributions of the in situ and accreted material, and the effect of galaxy interactions and mergers in the assembly of a Milky Way-like galaxy. We find that the initial growth phase of galaxy evolution, dominated by repeated major mergers, provides the necessary physical conditions for the assembly of a thick, kinematically hot disc populated by high-[α/Fe] stars, formed both in situ and in accreted satellite galaxies. We find that the diversity of evolutionary tracks followed by the simulated galaxy and its progenitors leads to very little overlap of the in situ and accreted populations for any given chemical composition. At a given age, the spread in [α/Fe] abundance ratio results from the diversity of physical conditions in VINTERGATAN and its satellites, with an enhancement in [α/Fe] found in stars formed during starburst episodes. Later, the cessation of the merger activity promotes the in situ formation of stars in the low-[α/Fe] regime, in a radially extended, thin and overall kinematically colder disc, thus establishing chemically bimodal thin and thick discs, in line with observations. We draw links between notable features in the [Fe/H]-[α/Fe] plane with their physical causes, and propose a comprehensive formation scenario explaining self-consistently, in the cosmological context, the main observed properties of the Milky Way.

Assessing Impact of Liberalization on Financial Performance Sustainability of Indian Pharmaceutical Industry using Structure Conduct Performance Model

The Indian Pharmaceutical Industry is ranked third largest by volume and fourteenth by value. It thus accounts for 10% of world’s production by volume and 1.5% by value according to Department of Pharmaceuticals, Government of India. Recognizing the immense potential for growth of Indian pharmaceutical industry and its direct impact on Indian economy the present paper tries to analyze the market structure of the Indian pharmaceutical firms and assess how the sustainable profitability of firms is affected using structure conduct performance model. The study founds out the sustainable profitability is statistically related to firm size, export and import, raw material expenses, power use and wage intensity but there seems to be insignificant effect of market share and mergers and acquisition on firm’s performance in terms of sustainable profitability.

A Systematic Literature Review on Mergers and Acquisitions: A Bibliometric Analysis Approach

Many studies have examined the effects of mergers and acquisitions, but their results vary significantly. Thus, mergers and acquisitions are one of the most popular corporate restructuring activities undertaken by various organizations, institutes, companies (both private and public), agencies, and establishments, all in a quest to achieve the desired aim of the companies. But a pertinent question exists as to if mergers and acquisitions (M&A) have produced the desired goals and objectives of the companies. Therefore this study aims to examine the results, empirical preference, and author's opinions of existing literature as to if M&A had produced synergy gains or not. Bibliometric analysis is the methodological procedure used in this study. A total number of fifty (50) high-profile literatures were qualitatively examined, and it shows that M&A produced synergy gains to the level of 48%. From the analysis, M&A was also found not to produce synergy gain to the level of 28%, thus making the remaining 24% to be associated with authors whose views weren't explicit and those that are undecided to M&A producing synergy gains. This review study recommends that horizontal mergers and acquisitions be encouraged to increase the companies' market share, leading to their desired goals and objectives.

Non-profit hospital mergers: the effect on healthcare costs and utilization.

I use a 2010 non-profit hospital merger in Ohio to study the effect of market concentration on market outcomes. Using the Synthetic Control Method and Truven MarketScan data, I document three findings. First, courts are lenient to non-profit mergers, and I cast doubt on this practice by showing that the studied merger led to a 123% increase in the payments for inpatient childbirth services. Second, I provide the first empirical evidence for the conjecture that mergers increase out-of-pocket payments and reduce the utilization of care. Last, I show that the effect of market power on market outcomes is asymmetric: the increase in payments and welfare loss created by a merger persist after the merger is rescinded. Thus, even successful FTC challenges may not revert the effect of harmful mergers, and it is essential to deny such mergers before they proceed.

The magnetic field across the molecular warped disk of Centaurus A

Magnetic fields are amplified as a consequence of galaxy formation and turbulence-driven dynamos. Galaxy mergers can potentially amplify the magnetic fields from their progenitors, making the magnetic fields dynamically important. However, the effect of mergers on magnetic fields is still poorly understood. We use thermal polarized emission observations to trace the magnetic fields in the molecular disk of the nearest radio active galaxy, Centaurus A, which is thought to be the remnant of a merger. Here, we detect that the magnetic field orientations in the plane of the sky are tightly following the $\sim3.0$ kpc-scale molecular warped disk. Our simple regular large-scale axisymmetric spiral magnetic field model can explain, to some extent, the averaged magnetic field orientations across the disk projected on the sky. Our observations also suggest the presence of small-scale turbulent fields, whose relative strength increases with velocity dispersion and column density. These results have strong implications for understanding the generation and role of magnetic fields in the formation of galaxies across cosmic time.

Economic analysis in merger investigations

Economics plays a central role in effective merger enforcement, as it provides the conceptual framework to assess merger effects. Additionally, effective merger enforcement relies on the merger assessment being firmly rooted in evidence. Economic analysis is often key in interpreting this evidence. This article discusses the role of economists and economic analysis in merger investigations by the Competition and Markets Authority, in particular in relation to the approach to economic analysis and evidence gathering, and the wider contribution of economists at the CMA in developing the toolkit used for assessing mergers.