Post Merger Research Articles

Simulations of the merging cluster of galaxies Cygnus A

The archetype FR-II galaxy Cygnus A lies in a moderately rich cluster about to undergo a major merger. We study the pre-merger Cygnus cluster environment using smoothed particle hydrodynamics simulations constrained by 2Ms of Chandra observations of the hot intracluster medium. The observations constrain the total gravitating mass and concentration parameter, and the simulations provide the quiescent and merger-enhanced temperature profiles of the pre- and post merger of the cluster excluding the central active galactic nucleus. We present the first detailed model of the sub cluster north west of Cygnus A, named CygNW. We find a lower baryon fraction and higher concentration parameter for CygA than expected from known scaling relations in the literature. The model suggests the Cygnus cluster hosts a pre-merger with a progenitor mass ratio of about 1.5:1 at the virial radius. We notice that the intra cluster medium is heated as a result of the merger, but we find no evidence for a (pre-)merger shock in the interstitial region between both cluster haloes. We attribute the merger-induced heating to compression of the cluster outskirts. The smooth model obtained from our simulations is subtracted from the observed cluster state and shows residual temperature structure that is neither hydrostatic nor merger-heated cluster gas. We speculate that this residual heating may result from previous AGN activity over the last ~100 Myr.

The Effectiveness of Employee Retention and Organizational Culture Management on Post Merger Integration in Mergers and Acquisition - Case of Renault Samsung Motors -

In the past decade, many firms performed mergers and acquisitions. Many expected that through mergers and acquisitions both acquiring and acquired firms could improve their performance. However, in reality, the result had an adverse effect. Many people searched and found reasons for this failure and came to a conclusion that failure was mainly because of an unsuccessful post merger integration (PMI). Therefore, this paper's primary objective is to focus on specific issues for success in post merger integration (PMI). It also developed five propositions related to critical factors which are; employee retention (direct communication, incentive motive for compensation and benefit, and strong managed leadership) and culture management (effective open communication and modification and alteration of culture integration program). Renault Samsung case is used in this research because of its high level of success after a merger and acquisition. Also, this paper was explicitly focused on the period when Renault Motors had acquired Samsung Motors for the validity of Renault Samsung post merger integration (PMI) success.

Dissecting star formation in the “Atoms-for-Peace” galaxy

Context. The tidal tails of post-merger galaxies exhibit ongoing star formation far from their disks. The study of such systems can be useful for our understanding of gas condensation in diverse environments. Aims. The ongoing star formation in the tidal tails of post-merger galaxies can be directly studied from ultraviolet (UV) imaging observations. Methods. The post merger galaxy NGC7252 (“Atoms-for-Peace” galaxy) is observed with the Astrosat UV imaging telescope (UVIT) in broadband NUV and FUV filters to isolate the star-forming regions in the tidal tails and study the spatial variation in star formation rates. Results. Based on ultraviolet imaging observations, we discuss star-forming regions of ages <200 Myr in the tidal tails. We measure star formation rates in these regions and in the main body of the galaxy. The integrated star formation rate (SFR) of NGC7252 (i.e., that in the galaxy and tidal tails combined) without correcting for extinction is found to be 0.81 ± 0.01 M⊙ yr−1. We show that the integrated SFR can change by an order of magnitude if the extinction correction used in SFR derived from other proxies are taken into consideration. The star formation rates in the associated tidal dwarf galaxies (NGC7252E, SFR = 0.02 M⊙ yr−1 and NGC7252NW, SFR = 0.03 M⊙ yr−1) are typical of dwarf galaxies in the local Universe. The spatial resolution of the UV images reveals a gradient in star formation within the tidal dwarf galaxy. The star formation rates show a dependence on the distance from the centre of the galaxy. This can be due to the different initial conditions responsible for the triggering of star formation in the gas reservoir that was expelled during the recent merger in NGC7252.

Mitigating forecast errors from product variety through information sharing

We examine the impact of increasing product variety on two measures of a firm’s forecast performance – forecast accuracy and forecast bias – and test whether shared information mitigates this impact. With companies under pressure to expand product variety yet maintain good forecast accuracy understanding this relationship is critical. We use data gathered pre and post a vertical integration event, where some information forecasted prior to the merger was now available. We show that increasing product variety, and thus the number of forecasts, indeed deteriorates both forecast accuracy and bias. The vertical integration event, providing information sharing, results in improved forecast performance. Further, different product variety attributes (e.g. brand variety and pack variety) are found to have differing impacts. Increasing brand variety is found to have a significantly greater impact on forecast accuracy than pack variety. Using the vertical integration event as a natural experiment we document that expanding product variety negatively impacts forecasts and that information can help mitigated the impact. This is an important contribution as it tests the value of ‘truthful’ information given the elimination of the firm boundary post merger. Further, we show that a firm’s decision to expand product variety should include product variety attributes given their differential impact.

Comparative Pre and Post Merger Financial Analysis of Selected Indian Pharmaceutical Companies

A business may grow either by internal expansion or by external expansion. The focus of this paper is to study external expansion. A firm acquires a running business and grows overnight through corporate combinations, most common of these, is in the form of mergers and acquisitions. This study is an exploratory study, and through this paper an attempt is made to find an impact of acquisition on liquidity, solvency & financial risk, profitability and profitability of the acquiring company post merger as compared with pre period. For the purpose out of total 14 mergers, 10 mergers happening between the year 2000-01 to 2013-14, have been taken up for the study. A 3 year pre and post data of total of 17 variables of each of the selected mergers are taken from CMIE PROWESS 4.15 database and paired sample t-test is conducted (on statistical software of SPSS) to test the four hypothesis framed to fulfill the objectives of the study. Through this study it can be concluded that there is significant difference in liquidity post merger as compared with pre, but there is no significant difference in solvency& financial risk, profitability and operational efficiency for the sample of selected mergers.

The Fate of Neutron Star Binary Mergers

Abstract Following merger, a neutron star (NS) binary can produce roughly one of three different outcomes: (1) a stable NS, (2) a black hole (BH), or (3) a supramassive, rotationally supported NS, which then collapses to a BH following angular momentum losses. Which of these fates occur and in what proportion has important implications for the electromagnetic transient associated with the mergers and the expected gravitational wave (GW) signatures, which in turn depend on the high density equation of state (EOS). Here we combine relativistic calculations of NS masses using realistic EOSs with Monte Carlo population synthesis based on the mass distribution of NS binaries in our Galaxy to predict the distribution of fates expected. For many EOSs, a significant fraction of the remnants are NSs or supramassive NSs. This lends support to scenarios in which a quickly spinning, highly magnetized NS may be powering an electromagnetic transient. This also indicates that it will be important for future GW observatories to focus on high frequencies to study the post-merger GW emission. Even in cases where individual GW events are too low in signal to noise to study the post merger signature in detail, the statistics of how many mergers produce NSs versus BHs can be compared with our work to constrain the EOS. To match short gamma-ray-burst (SGRB) X-ray afterglow statistics, we find that the stiffest EOSs are ruled out. Furthermore, many popular EOSs require a significant fraction of ∼60%–70% of SGRBs to be from NS–BH mergers rather than just binary NSs.

Probing the assembly history and dynamical evolution of massive black hole binaries with pulsar timing arrays

We consider the inverse problem in pulsar timing array (PTA) analysis, investigating what astrophysical information about the underlying massive black hole binary (MBHB) population can be recovered from the detection of a stochastic gravitational wave background (GWB). We employ a physically motivated model that connects the GWB spectrum to a series of parameters describing the underlying redshift evolution of the MBHB mass function and to the typical eccentricity they acquire while interacting with the dense environment of post merger galactic nuclei. This allows the folding in of information about the spectral shape of the GWB into the analysis. The priors on the model parameters are assumed to be uninformative and consistent with the current lack of secure observations of sub-parsec MBHBs. We explore the implications of current upper limits as well as of future detections with a variety of PTA configurations. We confirm our previous finding that current upper limits can only place an upper bound on the overall MBHB merger rate. Depending on the properties of the array, future detections can also constrain several MBHB population models at different degrees of fidelity. In particular, a simultaneous detection of a steepening of the spectrum at high frequency and a bending at low frequency will place strong constraints on both the MBHB mass function and on the typical eccentricity of inspiralling MBHBs, providing insights on MBHB astrophysics unlikely to be achievable by any other means.

EFFECT OF MERGERS AND ACQUISITIONS STRATEGIES ON FINANCIAL PERFORMANCE OF FINANCIAL SERVICES SECTOR

Purpose: The purpose of this study was to establish the effect of mergers and acquisitions strategies on financial performance of firms in the financial services sector in Kenya.Methodology: The study adopted a mixed methodology research design. The study population included all the 51 merged financial service institutions in Kenya. Purposive sampling was used. Primary data was obtained from questionnaires and a secondary data collection template was also used. The researcher used quantitative techniques in analyzing the data. Descriptive analysis for the study included the use of means, frequencies and percentages. Inferential statistics such as correlation analysis was also used. Panel data analysis was also applied. Further, a pre and post merger analysis was used.Results: Cost efficiency was found to have a positive and significant effect on financial performance of merged institutions. Diversification had no significant effect on financial performance of merged institutions. Synergy had a significant relationship with financial performance of merged institutions. Board size had a significant relationship with financial performance of merged institution and there was a significant relationship between the moderating effect of economic growth and financial performance of merged institutions.Unique Contribution to Theory, Practice and Policy: The study recommended that policy makers (government) should be able to create or promote the enabling environment for facilitating mergers and acquisitions that concerns infrastructure provision, as a way of achieving cost reduction that could motivate similar mergers in other institutions in Kenya, stakeholders are to identify where their most immense profit pools lie and focus on improving those units responsible for them, the management of the financial services institutions should embrace diversification and financial innovation on product strategies as this will help in generating more income for the banks.

MODERATING EFFECT OF ECONOMIC GROWTH ON FINANCIAL PERFORMANCE OF MERGED INSTITUTIONS

Purpose: The purpose of the study was to determine the moderating effect of economic growth on financial performance of merged institutions Methodology: The study adopted a mixed methodology research design. The study population included all the 51 merged financial service institutions in Kenya. Purposive sampling was used. Primary data was obtained from questionnaires and a secondary data collection template was also used. The researcher used quantitative techniques in analyzing the data. Descriptive analysis for the study included the use of means, frequencies and percentages. Inferential statistics such as correlation analysis was also used. Panel data analysis was also applied. Further, a pre and post merger analysis was used.Results: There was a significant relationship between the moderating effect of economic growth and financial performance of merged institutions.Unique contribution to theory, practice and policy: The government and Central Bank of Kenya to come up with strategies and policies to protect the financial services sector due to its immense contribution to the economy of the country by formulating policies aimed at controlling the effects of rapid fluctuations of the macro economic factors and their effects on the sector.

EFFECT OF BOARD SIZE ON THE FINANCIAL PERFORMANCE OF MERGED INSTITUTIONS

Purpose: The purpose of this study was establishing the effect of board size on the financial performance of merged institutions.Methodology: The study adopted a mixed methodology research design. The study population included all the 51 merged financial service institutions in Kenya. Purposive sampling was used. Primary data was obtained from questionnaires and a secondary data collection template was also used. The researcher used quantitative techniques in analyzing the data. Descriptive analysis for the study included the use of means, frequencies and percentages. Inferential statistics such as correlation analysis was also used. Panel data analysis was also applied. Further, a pre and post merger analysis was used.Results: Board size had a significant relationship with financial performance of merged institution.Unique contribution to theory, practice and policy: It was recommended that, firms are place a remarkable degree of emphasis on the area of corporate governance and to some extent embark on eliminating CEO duality. The study also recommends a board size (6 and 8) for better financial performance. This will reduce the problem of free rider and enhance effective monitoring and decision making. It will also bring about cohesion among the board members.

EFFECT OF SYNERGY ON THE FINANCIAL PERFORMANCE OF MERGED INSTITUTIONS

Purpose: The purpose of the study was to determine the effect of synergy on the financial performance of merged institutions.Methodology: The study adopted a mixed methodology research design. The study population included all the 51 merged financial service institutions in Kenya. Purposive sampling was used. Primary data was obtained from questionnaires and a secondary data collection template was also used. The researcher used quantitative techniques in analyzing the data. Descriptive analysis for the study included the use of means, frequencies and percentages. Inferential statistics such as correlation analysis was also used. Panel data analysis was also applied. Further, a pre and post merger analysis was used.Results: Synergy had a significant relationship with financial performance of merged institutions.Unique contribution to theory, practice and policy: The study recommended that institutions should critically evaluate the overall business and operational compatibility of the merging institutions and focus on capturing long-term financial synergies. They should increase their scope to create high performing supply chains with significant long-term upside that provide sustained value for customers and stakeholders.

EFFECT OF DIVERSIFICATION ON THE FINANCIAL PERFORMANCE OF MERGED INSTITUTIONS

Purpose: The purpose of the study was to assess the effect of diversification on the financial performance of merged institutions.Methodology: The study adopted a mixed methodology research design. The study population included all the 51 merged financial service institutions in Kenya. Purposive sampling was used. Primary data was obtained from questionnaires and a secondary data collection template was also used. The researcher used quantitative techniques in analyzing the data. Descriptive analysis for the study included the use of means, frequencies and percentages. Inferential statistics such as correlation analysis was also used. Panel data analysis was also applied. Further, a pre and post merger analysis was used.Results: Diversification had no significant effect on financial performance of merged institutions.Unique contribution to theory, practice and policy: The study findings call for a re-assessment of the literature on diversification. Further research is necessary to study why sometimes the diversification-performance relationship is positive, others negative, and often quadratic. Further research is needed to investigate whether diversification effects on performance depends on the industries considered. This study recommends that companies with a weak and unstable capital base should seek to consolidate their establishments through mergers and acquisitions. Through mergers and acquisitions, these companies will be able to extend their market share and revenue base hence increase their profitability. In addition, mergers and acquisition leads to a higher CAR which improves the financial soundness of the companies.

Improving Accrual of Adolescents and Young Adults and Underrepresented Minorities with Leukemia to Children's Oncology Group Clinical Trials: A Novel Collaborative Approach to Address Disparities in Leukemia

Background:It is accepted that the dramatic historical decrease in mortality from ALL and AML in children and more recently AYAs is directly related to improved participation in NCI sponsored COG clinical trials. It is also known that African-American (AA) and Hispanic children, Hispanic females, and particularly AYAs 15 to 39 years are under-represented in COG clinical trials and may benefit from targeted attention. AA and Hispanic children with ALL and AML have worse survival than white and Asian children even with modern therapy where cure rates have improved drastically. Access to standard accepted chemotherapy for leukemia, socio-economic status and insurance status, differences in disease phenotype and pharmacogenetic variations play a role in these racial and ethnic disparities. AYAs with leukemia have experienced variable improvement in survival over the past two decades due partly to insufficient cancer clinical trial enrollment. Uninsured, older patients and those treated by non-pediatric oncologists were less likely to enroll onto clinical trials. Multiple studies of ALL in North America and Europe have shown AYA patients treated with pediatric "inspired" protocols have better outcomes than AYA patients treated with protocols designed for adults. Enhancing access to quality cancer care in a timely manner in these underrepresented populations (AYA, non white, or under-insured) has emerged as a priority area in oncology. In 2008, to improve access to this largely underserved population, two COG institutions (University of Illinois at Chicago (UIC) and Rush University) and a non-member hospital (John H Stroger Hospital of Cook County) created a unified COG program utilizing one lead IRB and one research team. This study assesses the impact that the collaborative UIC/Rush/Stroger COG program had on clinical trial enrollment for minority underserved and AYA patients with leukemia (ALL and AML).Methods: A retrospective comparative analyses of COG enrollment data from 2002-2008 and 2008-2014 (pre vs. post-merger) for all patients with ALL and AML by race/ethnicity, age at diagnosis, gender, insurance status, clinical trial type (biology, registry, therapeutic) , and leukemia type was completed. Information regarding the number of COG clinical trials available to enrolment and primary oncologists of enrollees' pre and post merger was collected.Results: The comparison of the number of patients enrolled pre-merger and post-merger by various variables is shown in table 1.A total of 40 enrolments with 9 being for therapeutic trials occurred at Stroger Hospital, a site with no access to COG trials prior to the merger. A total of 13 ALL patients and 5 AML patients were enrolled at Stroger Hospital, 7 of whom were uninsured (39%). Nine Pediatric Oncologists, 6 Medical Oncologists and 3 Pediatric nurse practitioners (18 total providers) were engaged in post-merger COG enrollments compared to 6 Pediatric and only 1 Medical Oncologist (7 total providers) engaged pre-merger across the three institutions.Conclusions: Significant increase in COG leukemia trial availability and enrollment especially for under-represented (non-white, underinsured) minorities and AYAs was a direct result of the creation of the novel UIC/Rush/Stroger COG Clinical Trials program. Cancer clinical trial participation has directly led to improved disease free survival and lower cancer death rates. Collaboration between institutions and Medical and Pediatric Oncologists is critical to participation of AYA's with leukemia in NCI sponsored clinical trials. Improving access to these clinical trials is essential to addressing current disparities in leukemia survival. The UIC/Rush/Stroger COG Program serves as a model for improved collaboration between competing institutions and specialists within institutions to increase access to current clinical trials for minority and AYA patients with leukemia. [Display omitted] DisclosuresNo relevant conflicts of interest to declare.

The Comparative of Corporate Performance Analysis Between Pre and Post Mergers and Acquisitions Companies in the Indonesia Manufacturing Industries Listed on The Stock Exchange in 2007-2012

This study aims to analyze the performance of companies doing mergers and acquisitions that proxies by Return on Capital Employed (ROCE), Return on Equity (ROE), Operating Profit Margin (OPM), NetProfit Margin (NPM), EPS (Earnings PerShare), PER (Price Earning Ratio). This studyuses the sample based on 90 companies in Indonesia manufacturing industries forthe period from 2007 to 2012.Hypothesis testing is done by using the paired t test. We had documented the results of the study findings ofthe performance of the company which showed the distinction between two conditions, pre mergers and acquisitions when compared with post mergers and acquisitions of companies. However, many out of the results are not statistically significant.
 Keywords: Mergers & Acquisitions; Corporate Performance; Financial Ratios.

Impact of Merger and Acquisition on Banks'Financial Performance: An Empirical Analysis of Selected Parameters

Mergers and acquisitions (M&A) are one of the most widely used corporate strategies followed by organisations looking for enhanced value creation. The present study attempted to analyse the impact of M&A on the financial performance of selected banks in India. It focuses on the rise of earnings per share, dividend per share and firms’ value and others of selected banks of pre and post–merger and acquisition with the help of statistical techniques. For this study, three banks namely HDFC Bank, ICICI Bank and Kotak Mahindra Bank are considered. The results reveal that most of the financial parameters during post merger have shown significant improvement in all the cases and there is possibility of improvement in financial performance in later years.

The Impact of Capital Structure on Profitability of Manufacturing Companies: using Multiple Regression Model

This paper investigates the impact of capital structure on profitability of the manufacturing companies in India. It tries to establish the hypothesized relationship as to how far the capital structure variable affects the business revenue of companies and what the interrelationship is between capital structure variable and profitability. This study is carried out after categorizing the selected manufacturing companies into three categories based on two attributes, viz. phases and period. First, manufacturing companies are grouped into pioneering stage, growth stage, consolidation stage on phases. Second, manufacturing companies are classified into pre and post merger based on period to establish the hypothesized relationship that capital structure variable has significant impact on profitability of manufacturing companies in India. For this study, a sample of seventy companies was chosen by the Multi-Stage Sampling Technique. Multiple Regression Analysis has been used to analyze the unique impact of capital structure variable on profitability. The study proves that there has been a strong one-to-one relationship between capital structure variable and Profitability variables, profit before tax the capital structure variable has significant influence on Profitability, and increase in use of debt fund in capital structure variable tends to minimize the net profit of the manufacturing companies.

X-RAY HIGH-RESOLUTION SPECTROSCOPY REVEALS FEEDBACK IN A SEYFERT GALAXY FROM AN ULTRA-FAST WIND WITH COMPLEX IONIZATION AND VELOCITY STRUCTURE

Winds outflowing from Active Galactic Nuclei (AGNs) may carry significant amount of mass and energy out to their host galaxies. In this paper we report the detection of a sub-relativistic outflow observed in the Narrow Line Seyfert 1 Galaxy IRAS17020+4544 as a series of absorption lines corresponding to at least 5 absorption components with an unprecedented wide range of associated column densities and ionization levels and velocities in the range of 23,000-33,000 km/s, detected at X-ray high spectral resolution (E/Delta E ~1000) with the ESA's observatory XMM-Newton. The charge states of the material constituting the wind clearly indicate a range of low to moderate ionization states in the outflowing gas and column densities significantly lower than observed in highly ionized ultra fast outflows. We estimate that at least one of the outflow components may carry sufficient energy to substantially suppress star formation, and heat the gas in the host galaxy. IRAS17020+4544 provides therefore an interesting example of feedback by a moderately luminous AGN hosted in a spiral galaxy, a case barely envisaged in most evolution models, which often predict that feedback processes take place in massive elliptical galaxies hosting luminous quasars in a post merger phase.

Ownership and M&A Performance in a Transitional Economy: The Case of the Chinese Real Estate Industry

ABSTRACTIn a transitional economy such as China's, when resources are unevenly distributed across different sectors, the disadvantaged sector may seek a growth path that bypasses resource constraints. We investigated this phenomenon in the context of the Chinese real estate industry. By comparing the post–merger and acquisition (M&A) performance of acquiring firms between state-owned enterprises (SOEs) and privately-owned enterprises (POEs), we attempted to show that POEs are better performers in the market should they be granted equitable resources, and the superior performance is strengthened by market-oriented institutional environment. We used M&A events data of publicly listed real estate firms in China from 2004 to 2012, in conjunction with firm characteristics and province-level market environment data. We found the results to be consistent with our hypotheses. In particular, compared to SOEs, privately-owned acquiring firms tend to have better post-M&A performance when both the regions of the acquirer and the target have high level of marketization. The results suggest that the private sector in China's transitional economy is potentially more efficient than the state-owned sector, as long as the market environment is favorable.

Relationship between Pre and Post Merger and Acquisition Banking Industry Performance in Nigeria

The objective of this paper is to analyse the relationship between the pre and post merger and acquisition performance of banking industry in Nigeria. Aggregate banking data ranging from 1981 to 2013 were analysed for evidence of correlation between the pre-merger banking performance and post-merger banking performance in Nigeria. The results obtained from the descriptive analysis of the pre and post merger and acquisition periods shows that the banking industry performance is significantly better after the merger than before the merger. Furthermore, the Pearson correlation coefficients show that absence of relationship between the pre and post merger period. Overall, the results show that there is significant difference in the performance of Nigerian banking industry in the pre merger and post merger and acquisition periods.

JUMPA Vol.2 No.1 Feb 2015 PENGARUH MERGER DAN AKUISISI TERHADAP KINERJA KEUANGAN PERUSAHAAN

This research aims to examine the differences of pre and post merger and acquisition on firm’s performance at Indonesia Stock Exchange. Firm performance is measured using some financial ratios, which are ROA (return on assets), ROE (return on equity), NPM (net profit margin), DR (debt ratio), EPS (earning per share), PER (price earning ratio),TATO (total asset turnover). The samples in this study were 26 manufacturing companies that were taken by purposive sampling method. The analysis used to test the hypothesis of this research is quantitative analysis with statistical methods of data normality test, Paired sample t-test and Wilcoxon signed rank test. The results from the Paired sample t-test and Wilcoxon signed rank test shows that there are no significant difference in testing 2 years before with 2 years after M&A for DR, PER, and TATO in acquiring firm, ROA, ROE, DR, EPS, PER, and TATO in acquired firm, ROA, ROE, NPM, DR, EPS, and PER in surviving firm. There are also significant difference in testing 2 years before with 2 years after for ROA, ROE, NPM, and EPS in acquiring firm, and TATO in surviving firm. These variables should be examined in a longer period of time in order to have better results.