Company Mergers Research Articles

The positive impact of corporate mergers on consumer welfare: from the perspective of corporate R and D investment

Enterprise mergers are essential for the development and growth of enterprises, and they are also an important mechanism for the market economy to improve the overall efficiency of the market through the survival of the fittest. Compared to gradually growing a company through internal accumulation, merging with other companies can achieve various goals such as scale expansion, business expansion, and financial optimization faster in a short period. Although business mergers are spontaneous actions of enterprises, the merger of enterprises, especially large enterprises, affects their performance and consumer welfare. To better study the potential impact of corporate mergers, this article combines traditional and modern merger theories to investigate the positive effects of corporate mergers on product prices, corporate innovation, and overall consumer welfare. The impact channels of Chinese-listed company mergers on their R&D expenses are evaluated empirically. Through empirical and theoretical analysis, this article proves that business mergers can improve efficiency, innovation, and consumer benefits by increasing research and development expenditures.

Entropy-TOPSIS Method Approach: A Comprehensive Quarterly Assessment with Application in Turkey's Cement Sector

The objective of this research is to determine the financial performance of Turkish cement firms using quarterly data from the period between 1997 and 2022 through the Technique for Order Preference by Similarity to Ideal Solution (TOPSIS). The research takes into account company mergers that occurred in 2020 and analyzes two distinct periods: from 1997 to 2020, and post-2020. Fourteen companies were examined in the first period, while ten companies were assessed in the latter period. To measure financial performance, ten common financial ratios selected based on literature were utilized. Determining the importance of these financial ratios is a crucial step in multi-criteria decision-making techniques; hence, the entropy method was employed to address this issue. According to empirical results, before the company mergers, UNYE and MARDIN cement firms were observed to consistently perform well financially, often ranking at the top based on the financial parameters considered. However, after the merger, it has been noted that BUCIM consistently held the top position in every quarter.

Performance Evaluation of a Company's Merger on the STAR Market from the Perspective of Performance Commitments

Performance Evaluation of a Company's Merger on the STAR Market from the Perspective of Performance Commitments

Does Vertical Integration Always Reduce an Electricity Retailer’s Fixed Price Offer?

We use a profit-maximizing model of forward pricing, which revealed that an electricity retailer’s fixed price offer (FPO) contains a large forward premium that encourages vertical integration of a generation company and a retailer. However, vertical integration does not always reduce FPOs, particularly when residential customers are segmented by consumption size and price sensitivity. Hence, a proposed merger of a big generation company and a big retailer requires regulatory scrutiny.

Сучасні аналітичні інструменти відповідального ведення бізнесу та впровадження стандартів єс для сталого розвитку в агропродовольчому секторі

Directions for ensuring the agricultural sector’s functioning in full-scale war conditions require modern analytical tools. They should be aimed at preserving the chain’s efficiency: “production – processing – storage – supply of food products to the population”. In the conditions of post-war recovery, by EU requirements, it is necessary to provide a digital platform for business analytics and subsequently diversify the development of agricultural production based on sustainable development, environmental friendliness, and circularity, increase the capitalization and investment attractiveness of enterprises, the formation of competitive market institutions, which will involve increasing the efficiency of agricultural production management of resources, strengthening of food security of the state, development of multi-organization, increase of export of goods with higher added value, provision of comfortable living conditions in the countryside. The significance of implementing the EU directive on the proper verification of the sustainable development of agricultural and food enterprises, considering environmental and social standards, cannot be overstated. This directive provides a framework for due Diligence tools, which are crucial for checking the economic activity of a food company and stages of Due Diligence diagnostics, measures for assessing the business reputation of a food company. In the work, a thorough analysis and assessment of the risks that arose during the martial law in Ukraine was carried out, an example of a Due Diligence B2B case is given – the merger of agro-food companies in the agricultural sector. The components of technical, commercial, operational and ESG verification, risk management components, business reputation assessment and predictive modeling of possible future scenarios and financial support and their reflection in the annual sustainable development report are covered. The introduction of the EU Directive on due diligence of the sustainable development of enterprises (Corporate Sustainability Due Diligence Directive) creates new challenges and opportunities for Ukrainian agri-food companies. To maintain access to the European market and strengthen business reputation, enterprises must implement sustainable development strategies that must meet environmental standards and respect human rights. This will contribute to strengthening their positions in the international arena and increasing competitiveness. Keywords: agro-food sector, sustainable development reporting, European standards, Due Diligence, post-war recovery, environmental standards, social standards, investment attractiveness, risks, business reputation, business analytics.

SPACs and the COVID-19 pandemic: Evidence from Korea

We examine how the COVID-19 pandemic affected the mergers of special purpose acquisition companies (SPACs) in Korea, where SPACs—since their introduction in 2010—have played a significant role in private company public listings. After the COVID-19 outbreak, SPACs were less likely to merge, but for those which chose to do so, merger announcement returns were on average higher, particularly for those that waited to merge until after the stock market recovered its pre-pandemic value. We also find evidence that SPAC holding period returns from the SPAC’s initial public offering to merger consummation (or liquidation, in the case of SPACs that failed to complete a merger) were on average higher after the outbreak. Overall, our results suggest that, despite their limited lifespan and agency issues, SPACs may operate more efficiently and perform better during periods of economic downturn.

Corporate Mergers from the Perspective of Private International

Economic competition casts its shadow on economic projects, as it pushes most of these projects to move towards economic blocs, and international merger is the legal means through which companies and economic projects can achieve their goals in creating these economic blocs. This merger technique directly affects the merging companies because the companies concerned with it not only lose their economic independence, but also lose their legal entity and thus their legal personality, as they disappear completely and are dissolved in the merging company. Also, the international merger of companies takes place through a contract called the merger contract, and these companies are usually of different nationalities, which raises the problem of searching for the law applicable to the merger contract itself, as it is a contract that includes a foreign element, and what is the legal system to which the international merger of companies is subject.

Targeting the CD47/SIRPα pathway in malignancies: recent progress, difficulties and future perspectives.

Since its initial report in 2015, CD47 has garnered significant attention as an innate immune checkpoint, raising expectations to become the next "PD-1." The optimistic early stages of clinical development spurred a flurry of licensing deals for CD47-targeted molecules and company mergers or acquisitions for related assets. However, a series of setbacks unfolded recently, starting with the July 2023 announcement of discontinuing the phase 3 ENHANCE study on Magrolimab plus Azacitidine for higher-risk myelodysplastic syndromes (MDS). Subsequently, in August 2023, the termination of the ASPEN-02 program, assessing Evorpacept in combination with Azacitidine in MDS patients, was disclosed due to insufficient improvement compared to Azacitidine alone. These setbacks have cast doubt on the feasibility of targeting CD47 in the industry. In this review, we delve into the challenges of developing CD47-SIRPα-targeted drugs, analyze factors contributing to the mentioned setbacks, discuss future perspectives, and explore potential solutions for enhancing CD47-SIRPα-targeted drug development.

Research on the Influencing Factors of M&ATaking Grees Acquisition of Yinlong as an Example

The current market competition is becoming increasingly fierce, and enterprises are seeking diversified development paths to better develop. With the continuous expansion of the company's scale, mergers and acquisitions are inevitable. However, the decision to acquire a company carries significant risks and will have a significant impact on the company's development. This article uses data such as stock prices, net profits, and leverage of listed companies to analyze acquisition risks using the VAR model. At the same time, the F-score model is used to compare and analyze the impact of company mergers and acquisitions before and after the acquisition, providing reasonable suggestions and methodological guidance for enterprise acquisitions.

The Economic Evolution of the Romanian Defense Market in the Context of the World Crisis (Post-pandemic) and the Imbalance of International Security (Military Conflict in Ukraine)

Abstract The analysis of crisis management shows that any crisis will generate risks and opportunities for certain industrial sectors. The current security crisis overlaps today with other crises (climatic, economic, energy, and medical crises generated by COVID-19). The medical crisis generated by the COVID-19 pandemic has recorded considerable profits for the pharmaceutical industry and companies in the medical equipment manufacturing industry. (John A. Parnel). The defense market and armaments production industry has been steadily growing at national and international levels due to the imbalance in international security caused by Russia's military conflict. An economical inside perspective is provided due to an internal study case based on the evolution of this industry's key sector. As per the analyzed data, the market demand is currently higher than the production capacity, both at European and national levels. The industry cannot meet the requirements of the defense market. Nonetheless, the turnover of the profile companies experienced significant increases with positive effects on the recorded profit rates. After conducting a thorough evaluation of the domestic defense industry, the solution might be to privatize state-owned companies in the security industry, which may involve merging companies with similar activity profiles. Also, financial incentives, such as tax measures like those granted to personnel working in the IT industry, can help overcome the human resources issue that the Romanian defense industry is currently facing.

Identification and Prevention of Financial Fraud of Merger and Acquisition Target of Public Company: Taking the Acquisition of Grand Image Advertising by Tianshan Animal Bio-Engineering as an Example

The purpose of this paper is to discuss the Financial Fraud of Merger and Acquisition (M&A) Target of public company in the process of M&A of target company, and take the case of Grand Image Advertising being merged and acquired by Tianshan Animal Bio-engineering as an example for in-depth analysis. Firstly, starting from the background and significance of M&A activities of public companies, it is pointed out that weak regulation leads to the prominence of financial fraud problems, especially in the context of the full implementation of the registration system for the issuance of shares, the market is facing new opportunities and challenges. This paper analyses the motivation of Financial Fraud of Merger of M&A Target of public company through GONE theory. At the same time, combined with cases, it analyses the signs of financial fraud in depth. Finally, this paper puts forward suggestions on how to prevent Financial Fraud of M&A Target of public Company. This study provides useful theoretical and practical references for further promoting the reform of comprehensive registration system, standardising the market regulatory environment, and guiding the market participating institutions to practice correctly.

A Comprehensive Study on Post-Merger of VI and its Implications on the Telecom Industry

Abstract: This paper conducts a thorough analysis of the post-merger scenario between Vodafone India and Idea Limited, now collectively known as Vodafone Idea Limited (VIL). The study examines various financial ratios to evaluate the implications of the merger on the telecom industry. The findings suggest that despite the strategic merger, the financial performance of VIL has deteriorated, as evidenced by a decline in key financial ratios compared to the pre-merger period. This research sheds light on the challenges faced by telecom companies in mergers and acquisitions and underscores the importance of strategic planning and execution in such endeavours.

How do cultural differences affect stock market performance after mergers and acquisitions? Empirical evidence from China

PurposeAs cross-cultural mergers and acquisitions (M&A) have learning effects on organisations, assessing their impacts on corporate performance is crucial. This study aims to explore the impact of inter-firm cultural differences on long-term post-M&A stock market performance.Design/methodology/approachThe authors select domestic M&A transactions of Chinese listed companies during 2010–2021 as the sample. Then, the authors use the partial least squares structural equation model (PLS-SEM) to construct the latent variable of cultural differences in four dimensions to explore long-term stock market performance.FindingsCultural differences first positively and then negatively impact post-M&A performance. Three transmissions mechanisms are identified: investor sentiment, takeover premiums and information disclosure quality. Further analysis reveals that acquirer stock performance improves with higher analyst coverage and non-local shareholders but worsens if there are business affiliations between the acquirer and target firms.Practical implicationsThis study can help optimise information disclosure systems in M&A transactions for regulatory authorities and aid investors’ understanding of post-M&A performance changes. Furthermore, it can improve acquirers’ understanding of the risks and opportunities in cross-cultural M&A, thereby facilitating the adaptation of management practices to the im-pacts of cultural differences.Originality/valueBy integrating the theories of resource dependence and transaction costs, this study examines the reversal effect of cultural differences between merging companies on post-M&A performance. The authors use a PLS-SEM to empirically analyse the main effects and reveal three transmission mechanisms.

Changing Share Price After Announcement Of The Merger And Acquisitions By Acquiring Firms Is Significant Or Insignificant

This Paper scrutinizes a model of merger and acquisition declaration of different companies in United Kingdom (Home Takeover) region and also other countries (Cross-Border Takeover) during the time period of 01 January 2019 to 30 June 2022 and finally displays the consequence of 50 Home takeover companies (UK companies acquired UK companies) and 50 cross- border companies (UK companies take over foreign companies) to recognize the post effect of merger andacquisition declaration on the stock prices of the target and acquired firms. Event Study Methodology has been used for this study, like, Average Abnormal Returns (AAR) and Cumulative Average Abnormal Returns (CAAR) are used to analyze the different event windows about the stock prices of the target and acquired firms. A paired sample investigation has also been directed by associating the Pre- and Post- announcement returns on stock prices for the event window of ± 5 days of the target and acquired firms. In the event windows, the stock price of the target firm's all is not positive CAAR but pointedly dissimilar from zero. In the home takeover figures, all the AAR and CAAR are not significant and some negative returns after the post-declaration prove about the primary investor's overreaction and efficient market hypothesis (EMH). There is no presence of positive implication in the cross-border pre-event return but only a positive implication returns in the home takeover pre-event return that is also significant at the 10% level.

Проблемы частноправовой ответственности за недостоверность заверения об обстоятельствах в сделках M&A энергетических компаний в российском и английском праве

This article discusses the peculiarities of the institution of representations as a means of protecting a bona fide party in M&A (mergers and acquisitions) transactions of energy companies under Russian and English civil law. Special attention is also paid to the issue of terminological consistency and the nature of M&A transactions. The relevance of the topic is due to the rising number of M&A transactions in the energy sector, the tendency to the increasing importance of state participation in managing such companies, and the resulting need to provide legal protection for a bona fide party to the transaction. The purpose of this study is to determine the extent of legal doctrine development in this area and the feasibility of using existing rules of both Russian and English law in energy company mergers and acquisitions. After analyzing various statutory acts and both foreign and domestic scientific literature, it can be concluded that the mentioned institution is novel to the legal system of the Russian Federation. It is necessary to improve the legal doctrine, use the principle of freedom of contract, and establish liability in specific contractual obligations. Additionally, the author suggests elaborating on the consequences of recognizing a reorganization (M&A transaction) as failed (invalid) due to false representations by one of the parties involved at the statutory level.

Thematic diversity of brief news items in British newspaper The Guardian and journal The Economist

The article is dedicated to the study of thematic diversity in quality British press: newspaper The Guardian and journal The Economist. The aim was to compare the percentage of certain themes in The Guardian and The Economist. To reach this aim the percentage of articles on certain themes was calculated: firstly for The Economist, secondly for The Guardian. Afterwards the percentage was compared. The following themes were studied: politics, economy, the mixture of economy and politics, culture, sports, science, technology, brexit, health, nature, crime, ecology, art, laws, mind set, trade war, natural catastrophes, international relations, protests, migration, inequality, Russian meddling, elections, catastrophes, terrorism, harassment, education, space, drugs, resignations, royalty, obituary, international affairs, food, intelligence, nuclear power, ousts, leaks, war, new position, goods, prosecution, persecution, authoritarianism, interreligious relations, justice, tracks, separatism, merging companies, demography and tariffs. After analyzing brief news items from The Economist and The Guardian, it was found that in The Guardian there are more articles with the following themes: politics, culture, sports, technologies, brexit, health, nature, crime, ecology, trade war, natural catastrophes, protests, migration, catastrophes, terrorism, harassment, education, space, drugs, royalty, food, nuclear power, prosecution and justice. At the same time in The Economist there are more articles with themes like a mixture of economy and politics, economy, art, laws, mind set, international relations, inequality, Russian meddling, elections in different countries, resignations, obituaries, international affairs, intelligence, ousts, leaks, wars, new positions, goods, persecutions, authoritarianism, interreligious relations, merging companies, demography and tariffs. It is necessary to note that there’s a wider diversity of themes in The Economist. The following themes are present only in The Economist: interreligious relations, persecution, tracks, merging companies, demography and tariffs (without retaliation of the other side). At the same time only the theme of food is absent in The Economist.

Exploring Competence-Based Synergism in Strategic Collaborations: Evidence from the Global Healthcare Industry

One of the most essential issues in business partners’ collaboration is whether the integration of their businesses creates a collaborative synergy and adds market value to merging companies. This paper aims to develop a methodological framework that will be convenient for managerial praxis and helpful for scholars’ research in forecasting explicit synergy and valuing tacit synergy in strategic collaborations. The paper theoretically and empirically contributes twofold to strategic foresight. It employs the ARCTIC framework as an extension of the VRIO model to predict an explicit synergy and real options methodology to measure tacit competence-based synergies in M&A deals. The paper makes several theoretical contributions and managerial implications to corporate finance and strategic management disciplines. Finally, the paper discusses research limitations and future work.

Company Merger and its Impact on Eligibility for Litigation

Resorting to the judiciary is a right guaranteed by most constitutions, and it is organized according to procedural laws that guarantee whoever takes this path the integrity of the procedures. It is known that a judicial claim is made only through a lawsuit, which is preceded by a claim of the right. In order for the lawsuit procedures to take place in the manner prescribed by the law, the latter required the availability of a number of The conditions for accepting a lawsuit are litigation, eligibility, capacity, and other conditions. The lawsuit in the judicial claim is the right of every person to whom the law recognizes legal personality and thus enjoys the legal capacity that allows him to be a party to any legal relationship, and among these people is the company, and when we are before an existing company that has legal capacity, there are no problems with that company entering into the legal process. Any legal relationship, except that what is raised is in the event that an abnormal situation occurs in the life of the company that affects its eligibility, as is the case in a merger. Here we will be faced with a new company existing as a result of the merger of two companies with each other, but the end of the life of the company through the merger does not mean applying all the procedures. Regarding the termination of the company, we are faced with an abnormal situation of the end of the legal existence of the company, and this prompts us to examine this issue based on the impact of the merger on the eligibility for litigation of the merged company .

Peran Public Relations Dalam Mempertahankan Citra Perusahaan Go To Pasca Merger

The company merger between Gojek and Tokopedia, which has been carried out since 2021, aims to unite two different company ecosystems into a single entity with a wider reach. Therefore, the existence of Public Relations is needed in maintaining the image of the two companies that have become one. This study aims to determine the role of Public Relations in maintaining GoTo's corporate image after the merger. The theory used in this research is the theory of Dozier and Broom regarding the role of Public Relations in maintaining the company's image, including (1) expert preciber communication, (2) problem solving process facilitator, (3) communication facilitator and (4) technician. The method used in this research is descriptive qualitative method with data collection techniques through literature search, company documents, media monitoring, and observation. The results showed that with the role of Public Relations as a problem solving process facilitator and communication facilitator, the GoTo Company can handle issues regarding the policy of reducing incentives and employee layoffs quite well, so that GoTo's image can still be maintained

PROTECTION OF THE EMPLOYMENT RELATIONSHIP OF EMPLOYEE REPRESENTATIVES IN THE ACT ON CROSS-BORDER TRANSFORMATIONS, MERGERS AND DIVISIONS OF COMPANIES

The mechanisms of employee participation in companies established as a result of trans-border transformation, merger or split of companies are one of the dimensions of the empowerment of employees as part of the European participation model. Exercising their participation rights by the employee community poses a threat of the emergence of conflict between the employer and employee representatives. Their consequences may affect the existence of the employment relationship of employee representatives, especially those who show dedication and are uncompromising in performing their participation-related functions. The principles of protecting employee representatives are regulated by Art. 51 of the Act. This provision establishes various planes of protection, starting from the subjective one, through objective, to the temporal plane. This article presents all those planes in the dogmatic aspect.