Wealth effects and financial performance of cross-border mergers and acquisitions in five East Asian countries

2011 ◽  
Vol 2 (3) ◽  
pp. 219 ◽  
Author(s):  
Saw Imm Song ◽  
Dorothy Chiok Choo Kueh ◽  
Rashidah Abdul Rahman ◽  
Ei Yet Chu
Keyword(s):  
Mergers And Acquisitions ◽  
Financial Performance ◽  
East Asian ◽  
Wealth Effects ◽  
Asian Countries ◽  
Cross Border

scholarly journals Cross Border Mergers and Acquisitions by Indian firms- An Analysis of Pre and Post Merger performance

2013 ◽  
Vol 4 (2) ◽  
pp. 227-236
Author(s):  
Kanika Sahni ◽  
Nancy Sahni
Keyword(s):  
Mergers And Acquisitions ◽  
Financial Performance ◽  
International Markets ◽  
Rank Test ◽  
Ratio Analysis ◽  
Cross Border ◽  
Signed Rank ◽  
Different Types ◽  
Before And After ◽  
Signed Rank Test

The corporate sector all over the world is restructuring its operations through different types of consolidation strategies like mergers and acquisitions in order to face challenges posed by the new pattern of  globalisation, which has led to the greater integration of national and international markets.. The intensity of cross-border operations recorded an unprecedented surge since the mid-1990s and the same trend continues (World Investment Report, 2000).The objective of the study is to analyse and compare the pre and post-merger and acquisition financial performance of four firms- Ranbaxy, Dr Reddy, Tata Steel and Hindalco through ratio analysis. For this, the data was being collected for three years before and after the acquisition from Capitaline database. Then to compare the changes, SPSS tool- Wilcoxon Signed Rank Test  was being applied. The study concluded that cross-border Mergers and Acquisitions of the selected firms have resulted in no significant change in the financial  performance of these firms.

scholarly journals Wealth effects of business takeover announcements: The case of Australian acquirers’ shareholders

2010 ◽  
Vol 8 (1) ◽  
pp. 758-771
Author(s):  
Shrimal Perera ◽  
Jayasinghe Wickramanayake ◽  
Ankit Mehta
Keyword(s):  
Mergers And Acquisitions ◽  
Abnormal Returns ◽  
Wealth Effect ◽  
Wealth Effects ◽  
Asia Pacific ◽  
Pacific Region ◽  
Asia Pacific Region ◽  
Cross Border ◽  
Short Horizon

Australia has accounted for over 51 percent of mergers and acquisitions in the Asia Pacific region (excluding Japan) during 2004-2006. This paper investigates the short-horizon and long-horizon wealth effects experienced by shareholders of Australian acquirers following these domestic and cross-border business takeover announcements. The sample consists of 197 announcements. Results for domestic acquisitions suggest that acquirers’ shareholders endure abnormal returns in the range of -1.07% and -1.86% per day in the short-horizon. The long-horizon wealth effects, however, were found to be inconclusive. Results for cross-border acquisitions show that acquirers’ shareholders endure abnormal returns in the range of 1.02% and 1.26% per day in the short-horizon. This positive wealth effect, however, dissipates in the long-horizon.

scholarly journals Trends and Regional Patterns of Cross-Border Mergers and Acquisitions:A Case of Malaysian and Indonesian Acquirers

2020 ◽  
Author(s):  
Mohd Haniff Jedin
Keyword(s):  
Mergers And Acquisitions ◽  
South Korea ◽  
Asia Pacific ◽  
Asian Countries ◽  
Opinion Survey ◽  
Regional Patterns ◽  
Engineering Software ◽  
Asian Region ◽  
Cross Border

Progress of cross-border mergers and acquisitions (M&A) in Asian region demonstrates an upstream pattern although the economy in Europe is unhealthy. In fact, many cross-border deals in Europe are dominated by Asian and US acquirers. In 2010, Asia Pacific countries had completed over 8,300 M&A deals that involved an Asian company reported by Dealogic. Countries such as China, South Korea, Malaysia, Singapore and Thailand are among Asian countries that are active in cross-border M&A. However, M&A trends in Malaysia and Indonesia have not received due attention of the researchers. Present study attempts to explore this phenomenon with the specific idea of identifying the background of Malaysian and Indonesian industries that involved in cross-border M&A. Present paper also reveals the integration trends involved when engaging in cross-border M&A. An opinion survey was conducted of the firms involved in M&A deals; the companies were identified from the Thomson One Banker main database which covers cross border M&A cases completed in Malaysian and Indonesia. Results show that engineering, software and telecommunication industries are among the leading industries engaged in cross-border M&A. Results also reflect that in terms of nationality of the acquired firms, Malaysia, Indonesia, Thailand and Singapore are among favourites to Malaysian and Indonesian acquirers. The study highlights higher success compared to failures in cross-border M&A in the countries under reference.  

How Are the Determinants of Emerging Asia's Cross-Border Mergers and Acquisitions Inflows Different from Outflows?

2018 ◽  
Vol 17 (1) ◽  
pp. 123-144
Author(s):  
Qin Liang ◽  
Ningxu Li ◽  
Jie Li
Keyword(s):  
Stock Market ◽  
Mergers And Acquisitions ◽  
Market Liquidity ◽  
Bank Credit ◽  
Market Size ◽  
Source Country ◽  
Asian Countries ◽  
Labor Costs ◽  
Foreign Markets ◽  
Cross Border

This paper investigates whether the determinants of mergers and acquisitions (M&A) inflows are different from those of outflows in emerging Asia. We use an augmented gravity model with bilateral cross-border M&A data from 2000 to 2015 for 13 emerging Asian countries. We find that the stock market size of the source country matters for both M&A inflows and outflows. In addition, the motives of firms seeking foreign markets, natural resources, and lower labor costs drive both M&A inflows and outflows. Finally, both the bank credit and the stock market liquidity of the source country play important roles in M&A inflows only, not in M&A outflows.

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

2021 ◽  
Vol 18 ◽  
pp. 838-845
Author(s):  
Ogunwale Olurotimi ◽  
Ikpefan Ochei ◽  
Isibor Areghan ◽  
Achugamonu Uzoma ◽  
Folashade Owolabi ◽  
...  
Keyword(s):  
Mergers And Acquisitions ◽  
Financial Performance ◽  
Banking Sector ◽  
Wealth Effects ◽  
Insurance Companies ◽  
Corporate Financial Performance ◽  
Insurance Sector ◽  
Unit Increase ◽  
Drastic Increase ◽  
The Face

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.

Relationship between Cross-Border Mergers and Acquisitions and International Trade: The Case of Russian Pharmaceutical Industry

2020 ◽  
pp. 81-94
Author(s):  
Alexandra V. Chugunova ◽  
Olga A. Klochko
Keyword(s):  
International Trade ◽  
Mergers And Acquisitions ◽  
Volume Growth ◽  
Pharmaceutical Products ◽  
Pharmaceutical Companies ◽  
Cross Border ◽  
Export Volume ◽  
Relationship Of ◽  
Geographical Diversification ◽  
The Relationship

This research studies the relationship of cross-border mergers and acquisitions to international trade through the lens of Russian pharmaceutical market. To this aim, the study analyses the woks of foreign economists dedicated to evaluating the link between foreign direct investment and international trade, and the influence of mergers and acquisitions on countries’ export and import flows. The research also presents a correlation analysis between the volume of Russian pharmaceutical exports and imports and cross-border deals performed by foreign pharmaceutical companies in Russia. We characterize these deals and conduct a comparative analysis of the regional structure of Russian pharmaceutical exports and imports as well as of the countries of origin of buyers in cross-border mergers and acquisitions. The results of the analysis indicate a positive relationship between cross-border mergers and acquisitions and Russian pharmaceutical exports, which is reflected in the export volume growth and its geographical diversification. However, it is outlined that particular problems of the industry hinder the amelioration of Russian positions in international exports. Similarly, the relationship between cross-border deals and Russian imports is positive: the major pharmaceutical products supply flow occurs from the countries of origin of buyers in cross-border mergers and acquisitions conducted in the Russian pharmaceutical sector.

Creativity in East Asian Countries

Asia Review ◽  
2015 ◽  
Vol 4 (2) ◽  
pp. 31
Author(s):  
Cheong-Tag Kim
Keyword(s):  
East Asian ◽  
Asian Countries
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