A number of empirical studies have shown that negative abnormal returns often result shortly after a once promising merger is consummated. There are few consistent explanations, however, as to why so many mergers result in such poor performance. This paper sheds light on this issue by examining the effect that structural factors (including market concentration and R&D intensity) have on post-me...

We analyze the risk implications of European bank consolidation on the probability of default of acquiring banks. Using the Merton distance to default model, we show that the average bank merger is risk neutral. We examine the extent to which merger motives linked to risk diversification and regulatory incentives explain the observed risk effects of M&A. However, we find only limited evidence c...

Within the standard structure formation scenario, galaxies form as the result of an extended merger process. The first structures to form are small bound objects occurring at z ∼ 10, which then merge repeatedly to form increasingly larger objects. In this context, elliptical galaxies are generally seen as the result of a major merger of spiral systems. Through extensive SPH simulations of mergi...

A GLANCE at the covers of contemporary business periodicals reveals that many people believe the corporation is changing so dramatically that we need a new lexicon to describe it. On a recent trip to my local book superstore, I found eleven titles that sought the right word to characterize the company of the future in a time of dizzying change. Some of these— The Boundaryless Organization (Ashk...

This paper formalizes a non-cooperative explanation for pre-merger price increases. When consumers face switching costs, firms have strong incentives to offer bargain prices to lock in consumers whom they can exploit in the future. A future merger reduces a firm’s incentive to gain current market share, however, because the firm anticipates sharing future profits. Focusing on near-term profit, ...

This study investigates the merger effects of two banks. The merger took place in mid 1999s and the effect was the Alpha Bank. The research is performed in two parts. The first part investigates the merger in the short-term, while the second part investigates the long-term effects of the merger exploring the relative position of the Alpha bank within the industry. Results show a beta-risk value...

Traditional merger analysis in the U.S. focuses on a single dimension, namely the combination of two or more firms that supply substitutable products. As such, merger analysis misses the fact that there are various types of mergers – e.g., hostile takeovers, friendly acquisitions, and mergers of equals – and that the differences among these types affect outcomes. Similarly missing is explicit c...

In contexts where banks have strong control over firms, banking crisis may be associated with merger activity. This is because banks’ risk is reduced when their clients merge, and financial trouble creates strong incentive for banks to facilitate mergers of clients to improve banks’ risk standing. During Japan’s banking crisis in the 1990s, corporate merger activity was correlated with banks’ f...

We examine the reliability of the merger trees generated for the Monte-Carlo modeling of galaxy formation. In particular we focus on the cold gas fraction predicted from merger trees with different assumptions on the progenitor distribution function, the timestep, and the mass resolution. We show that the cold gas fraction is sensitive to the accuracy of the merger trees at small-mass scales of...

Pelaksanaan merger, akuisisi dan konsolidasi di Indonesia harus dituangkan dalam akta Notaris. Notaris ikut berperan serta proses pelaksanaan konsolidasi. Dalam penelitian ini akan dilihat bagaimana peran yang dilakukan perusahaan ditinjau dari tanggung jawab pembuatan perusahaan. memiliki peranan sangat penting mempersiapkan melakukan diberikan kewenangan oleh Negara akta-akta berkaitan dengan...