¶ … value differences between merging with other companies inside of Western Europe vs. investing in merging with companies in BRIC nations. Thus, mergers and acquisitions from within Western Europe were gathered. These were then compared to mergers of Western European companies with BRIC nations, including Brazil, Russia, India, and China. The data set chosen was to include a span of ten years, from 1999 to 2009. First and foremost, there were more mergers within this time frame than past 2009 based on the fact that the economic crisis in Europe had worsened to a degree that made mergers and acquisitions decline overall in the region. Moreover, after 2009, there were actually increasing trends of BRIC nations investing in acquiring Western European nations, and not the other way around because of declining financial conditions that were weakening the acquisition and leveraging power of many European companies. The period of 1999 to 2009 thus provided a more balanced survey. Companies from a variety of different industries were chosen to be included in the sample, which ended up with a total of ten mergers for each category that of within Western Europe and of Western European companies merging with companies from BRIC nations. The first step was to define the independent and dependent variables. There were three independent variables used in the context of this research. These included the country type (Western European to Western European or Western European to BRIC Nation), transaction value, and the stock price 30 days prior to the merger announcement. Data to fill these three independent variable categories was gathered from a number of sources, including Dorai & Patolahti (2010), Institute of Mergers, Acquisitions, and Alliances (2015), and Reuters (2013). Then the design of this research chose stock price for the year of the merger and a year after as the two dependent variables that would be tested through the regression analysis. As a method for an event study, ADR stock listing prices...
According to a similar study conducted by Wang & Moini (2012) "it is designed to measure whether there is an abnormal stock price effect associated with an unanticipated event (M&A)." Stock prices for these two periods were collected using historical data from Yahoo! Finance and Google Finance. Thus, the research recorded monthly AR stock closing prices for 30 days before merger, 30 days after merger, year after merger, and August 2015. Next, it was important to identify any outliers, which were then removed. In this case, RFS Holdings BV was a clear outlier, as the stock price was well above the others in the sample set. In order to provide the clearest results, this was removed from the sample set.
Typically, difference in expectations between Japanese and American is manifested because of the cultural variables. American believes that it is acceptable to express emotions openly. On the other hand, Japanese culture does not believe in overt expression. Japanese considers the overt expression as unacceptable, and in most cases, Japanese considers the American overt expression as a sign of aggressiveness. Japanese considers endurance and harmony to be important. Japanese believes that
Managing All Stakeholders in the Context of a Merger Process Review of the Relevant Literature Types of Mergers Identifying All Stakeholders in a Given Business Strategic Market Factors Driving Merger Activity Selection Process for Merger Candidates Summary, Conclusion, and Recommendations The Challenge of Managing All Stakeholders in the Context of a Merger Process Mergers and acquisitions became central features of organizational life in the last part of the 20th century, particularly as organizations seek to establish and
Assume that you are the CEO of a multi-national company. What is the first thing you consider when selecting a model to use in an upcoming cross-cultural merger, joint venture, or acquisition? Why? How will this consideration assist you in selecting the best model for the situation? Being the CEO of a multi-national company, the primary thing I would first and foremost take into consideration when choosing a model in a
The business culture of the United Kingdom is characterized by the value of free economy and private property (Rendtorff, 2009). At another level, it is marked by a desire to manage work and life issues. The employees in British organizations have long been marked out for their relatively leisurely pace of work and their priority for relationship issues over work related issues. Compared with their American counterparts, employees in UK
Forming a Bank Holding Company - Structure, Governance, and Regulations Understanding Banks Forming and Expanding a Bank Holding Company Financial Holding Company Requirements BHC Regulations Capital Building Options for Bank Holding Companies Pros and Cons of Forming a Bank Holding Company Stocks and Governance Corporate Governance and Banking Law The Role of Bank and Holding Company Audit Committees Data Gathering Method Database of Study Summary, Conclusions and Recommendations Forming a Bank Holding Company - Structure, Governance, and Regulations This research paper describes the process
Future Global Corporate Strategy and International Management The emergence of strategic management has always been attached to military history (Tallman, 2007). Studies in this area reveal various examples where the strategic management of offensive and counter-offensive led to decisive victories. Within the corporate sphere, it emerged following the Second World War. The dramatic growth of world nations such as China, Japan, and the U.S.A. served a beneficial environment for large international
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