The efficient market theory is a central point in finance. If the capital market is competitive, the investors cannot expect superior gains from their investment strategies with respect to the risk profile. Event stud...The efficient market theory is a central point in finance. If the capital market is competitive, the investors cannot expect superior gains from their investment strategies with respect to the risk profile. Event studies are an approach to verify the impact of the information on the stock prices. In an efficient market, stock prices should fully, promptly, and quickly capture all the information. Instead, the market shows phenomena of an under-reaction and over-reaction for both the short and the long run. The mergers and acquisitions （M＆As） are examples of anomalies. Often, the bidder companies record the negative abnormal returns for both the short and the long run. In contrast to the efficient market theory, the empirical evidence shows that this phenomenon is widespread in all （or most of） the countries of the world. This work examines the long-run performance in M＆As. For this purpose, 40 bidders were observed in Italy during the period of 1994-2008 among listed companies. The buy and hold abnormal returns （BHARs） methodology was used, with which it was possible to observe the returns for three years following the deal.展开更多
The obviously ever increasing number of corporate acquisitions in recent decades has improved the general knowledge and awareness of due diligence for both the industry and research. In the current challenging busines...The obviously ever increasing number of corporate acquisitions in recent decades has improved the general knowledge and awareness of due diligence for both the industry and research. In the current challenging business environment, acquisitions face a higher degree of risk profiles, especially cross-border acquisitions in the emerging markets. Conducting a thorough due diligence investigation in the context of an acquisition is more important now than ever. In a broad analysis, this paper researches the key risk factors in the acquisition process and their assessment within a due diligence audit in the acquisition phase. The task of this paper is to match the academic and practical view in order to give a more complete understanding of risk factors to be covered in due diligence audit. The starting point is the research of academic findings which basically concentrate on common approaches considering financial, legal, commercial, and some other issues in domestic acquisitions and in developed countries. In contrast, this paper considers risk factors in cross-border and emerging markets transactions. In addition, a number of business consultants publish studies based on surveys on this topic which reflect typical risk factors based on experience of their customers being involved in cross-border acquisitions. Their risk assessment consists of specific regulatory, political, and other factors, which may lead to commercial and reputational impediments in cross-border acquisitions. The outcome of the comparison is a comprehended list of evaluated risk factors, whereby the academic findings are complemented and supported by the practical experience in the business consultant＇s studies. Moreover, the practical approach points to the fact that due diligence scope needs to be suited to the dynamics of the markets. The comparison and the comprehended list of evaluated risk factors call for a more integrated system of due diligence and show herein the research deficit. Hence, the novelty is the compendium of evaluated risk factors which should be assessed in the pre-acquisition phase. The originality of the paper is given by a unique analysis of academic work about acquisition due diligence literature and consultant studies from anonymized practical experience based on insider information.展开更多
This paper constructs a model on the factors that influence knowledge transfer in mergers and acquisitions(M&A) and validates it via questionnaire surveys. Using 125valid collected questionnaires, multiple linear ...This paper constructs a model on the factors that influence knowledge transfer in mergers and acquisitions(M&A) and validates it via questionnaire surveys. Using 125valid collected questionnaires, multiple linear regression analysis and hierarchical regression analysis showed that five out of the ten factors had a positive effect on knowledge transfer effect. The ranking of factor importance, from high to low, was knowledge explicitness, relationship quality, learning intent, advanced transfer activities, and learning capability, which is fairly consistent with positive factors observed in other interorganizational knowledge transfer researches. Our results also showed that one of the control variables(size of acquired firm) had neither a direct or indirect effect on knowledge transfer in M&A. Additionally, our research found that knowledge distance and degree of M&A integration had a positive influence on knowledge transfer effect at the early stage after M&A, but had a negative influence at the late stage. Based on this research, several suggestions for knowledge transfer in M&A are proposed.展开更多
China＇s reform of state-owned enterprises （SOEs） and share trading plays an essential role in cross-border mergers and acquisitions （M＆A）. Considering most of the public listed companies enjoying abundant domest...China＇s reform of state-owned enterprises （SOEs） and share trading plays an essential role in cross-border mergers and acquisitions （M＆A）. Considering most of the public listed companies enjoying abundant domestic resources as an outcome of SOEs reform, as well as the new capital and innovative managerial conceptions that foreign M＆A brings in, the SOEs and share-trading reforms are undoubtedly mutually beneficial. As the reforms deepen, rules are established that state-owned shares cannot be traded, given potential loss of state-owned assets, which creates a great plight tbr foreign M＆A through directly purchasing tradable shares within China＇s A share market. Therefore, share-trading reform progressed so as to convert non-tradable shares to tradable ones, which indeed provides many opportunities for foreign M＆A. This article adopts case study and related empirical analysis methods. After systematic research on the cases of foreign M＆A of listed companies in China that were transacted between 1995 and November 2012, and analyzing each respectively under the framework of the existing sixteen models in China, those models can be further classified into three categories concerning the unique share structure as well as the legal environment in China.展开更多
The importance of stakeholder relationship management for successful integration in post-merger management is not doubted. The establishment of a new powerful trend in investments produces strategic shifts in strategi...The importance of stakeholder relationship management for successful integration in post-merger management is not doubted. The establishment of a new powerful trend in investments produces strategic shifts in strategic management. Shareholder wealth maximization way of thinking is changing to stakeholder wealth maximization where a company＇s value management system is based not only on economic profit maximization, but also on environmental, social, and governance （ESG） maximization. There is especially a high need for a management system that can be used by mergers and acquisitions （M＆A） practitioners during integration process. There is a critical need for metrics which can trace the interests of all stakeholders, because to achieve success in integration, it is no longer acceptable for management to focus solely on the needs of one or two stakeholder groups. In this article, the authors have introduced two frameworks： sun cube and stakeholder relationship matrix. These tools can be useful in mergers and acquisitions （M＆A） process for conducting a stakeholder analysis.展开更多
In this article, the author establishes the strong laws for linear statistics that are weighted sums of a m-negatively associated(m-NA) random sample. The obtained results extend and improve the result of Qiu and Yang...In this article, the author establishes the strong laws for linear statistics that are weighted sums of a m-negatively associated(m-NA) random sample. The obtained results extend and improve the result of Qiu and Yang in [1] to m-NA random variables.展开更多
In this article, we prove the existence and obtain the expression of its solution formula of global smooth solution for non-homogeneous multi-dimensional（m-D） conservation law with unbounded initial value; our metho...In this article, we prove the existence and obtain the expression of its solution formula of global smooth solution for non-homogeneous multi-dimensional（m-D） conservation law with unbounded initial value; our methods are new and essentially different with the situation of bounded initial value.展开更多
This paper presents a new description for brittle solids with micro- cracks under plane strain assumption.The basic idea is to extend the conservation laws such as the J_j-vector and M-integral analysis used in single...This paper presents a new description for brittle solids with micro- cracks under plane strain assumption.The basic idea is to extend the conservation laws such as the J_j-vector and M-integral analysis used in single crack problems to strongly interacting crack problems.The M-integral contains two distinct parts.One of them is a summation from the well-known relation between the M-integral and the stress intensity factors(SIF)at both tips of each crack.The other,called as the additional contribution,is obtained from the two components of the J_j-vector and the coordinates of each microcrack center in a global system.Of great significance is the clarification of the confusion about the dependence of the M-integral on the origin selection of global coordinates,provided that the vector vanishes at infinity and that the closed contour chosen to calculate the integral and the vector encloses all the microcracks completely.The M-integral is equivalent to the decrease of the total potential energy of the microcracking solids with the strong interaction being taken into account.The M-integral analysis,from a physical point of view,does play an important role in evaluating the damage level of brittle solids with strongly interacting microcracks.展开更多
Constantine M. Dafermos has done extensive research at the interface of partial differential equations and continuum physics. He is a world leader in nonlinear hyperbolic conservation laws, where he introduced several...Constantine M. Dafermos has done extensive research at the interface of partial differential equations and continuum physics. He is a world leader in nonlinear hyperbolic conservation laws, where he introduced several fundamental methods in the subject including the methods of relative entropy, generalized characteristics, and wave-front tracking, as well as the entropy rate criterion for the selection of admissible wave fans. He has also made fundamental contributions on the mathematical theory of the equations of thermomechanics as it pertains in modeling and analysis of materials with memory, thermoelasticity, and thermoviscoelasticity. His work is distinctly characterized by an understanding of the fundamental issues of continuum physics and their role in developing new techniques of mathematical analysis.展开更多
文摘The efficient market theory is a central point in finance. If the capital market is competitive, the investors cannot expect superior gains from their investment strategies with respect to the risk profile. Event studies are an approach to verify the impact of the information on the stock prices. In an efficient market, stock prices should fully, promptly, and quickly capture all the information. Instead, the market shows phenomena of an under-reaction and over-reaction for both the short and the long run. The mergers and acquisitions （M＆As） are examples of anomalies. Often, the bidder companies record the negative abnormal returns for both the short and the long run. In contrast to the efficient market theory, the empirical evidence shows that this phenomenon is widespread in all （or most of） the countries of the world. This work examines the long-run performance in M＆As. For this purpose, 40 bidders were observed in Italy during the period of 1994-2008 among listed companies. The buy and hold abnormal returns （BHARs） methodology was used, with which it was possible to observe the returns for three years following the deal.
文摘The obviously ever increasing number of corporate acquisitions in recent decades has improved the general knowledge and awareness of due diligence for both the industry and research. In the current challenging business environment, acquisitions face a higher degree of risk profiles, especially cross-border acquisitions in the emerging markets. Conducting a thorough due diligence investigation in the context of an acquisition is more important now than ever. In a broad analysis, this paper researches the key risk factors in the acquisition process and their assessment within a due diligence audit in the acquisition phase. The task of this paper is to match the academic and practical view in order to give a more complete understanding of risk factors to be covered in due diligence audit. The starting point is the research of academic findings which basically concentrate on common approaches considering financial, legal, commercial, and some other issues in domestic acquisitions and in developed countries. In contrast, this paper considers risk factors in cross-border and emerging markets transactions. In addition, a number of business consultants publish studies based on surveys on this topic which reflect typical risk factors based on experience of their customers being involved in cross-border acquisitions. Their risk assessment consists of specific regulatory, political, and other factors, which may lead to commercial and reputational impediments in cross-border acquisitions. The outcome of the comparison is a comprehended list of evaluated risk factors, whereby the academic findings are complemented and supported by the practical experience in the business consultant＇s studies. Moreover, the practical approach points to the fact that due diligence scope needs to be suited to the dynamics of the markets. The comparison and the comprehended list of evaluated risk factors call for a more integrated system of due diligence and show herein the research deficit. Hence, the novelty is the compendium of evaluated risk factors which should be assessed in the pre-acquisition phase. The originality of the paper is given by a unique analysis of academic work about acquisition due diligence literature and consultant studies from anonymized practical experience based on insider information.
基金supported by the National Planning Office of Philosophy and Social Science(Grant No.07BTQ011)
文摘This paper constructs a model on the factors that influence knowledge transfer in mergers and acquisitions(M&A) and validates it via questionnaire surveys. Using 125valid collected questionnaires, multiple linear regression analysis and hierarchical regression analysis showed that five out of the ten factors had a positive effect on knowledge transfer effect. The ranking of factor importance, from high to low, was knowledge explicitness, relationship quality, learning intent, advanced transfer activities, and learning capability, which is fairly consistent with positive factors observed in other interorganizational knowledge transfer researches. Our results also showed that one of the control variables(size of acquired firm) had neither a direct or indirect effect on knowledge transfer in M&A. Additionally, our research found that knowledge distance and degree of M&A integration had a positive influence on knowledge transfer effect at the early stage after M&A, but had a negative influence at the late stage. Based on this research, several suggestions for knowledge transfer in M&A are proposed.
文摘China＇s reform of state-owned enterprises （SOEs） and share trading plays an essential role in cross-border mergers and acquisitions （M＆A）. Considering most of the public listed companies enjoying abundant domestic resources as an outcome of SOEs reform, as well as the new capital and innovative managerial conceptions that foreign M＆A brings in, the SOEs and share-trading reforms are undoubtedly mutually beneficial. As the reforms deepen, rules are established that state-owned shares cannot be traded, given potential loss of state-owned assets, which creates a great plight tbr foreign M＆A through directly purchasing tradable shares within China＇s A share market. Therefore, share-trading reform progressed so as to convert non-tradable shares to tradable ones, which indeed provides many opportunities for foreign M＆A. This article adopts case study and related empirical analysis methods. After systematic research on the cases of foreign M＆A of listed companies in China that were transacted between 1995 and November 2012, and analyzing each respectively under the framework of the existing sixteen models in China, those models can be further classified into three categories concerning the unique share structure as well as the legal environment in China.
文摘The importance of stakeholder relationship management for successful integration in post-merger management is not doubted. The establishment of a new powerful trend in investments produces strategic shifts in strategic management. Shareholder wealth maximization way of thinking is changing to stakeholder wealth maximization where a company＇s value management system is based not only on economic profit maximization, but also on environmental, social, and governance （ESG） maximization. There is especially a high need for a management system that can be used by mergers and acquisitions （M＆A） practitioners during integration process. There is a critical need for metrics which can trace the interests of all stakeholders, because to achieve success in integration, it is no longer acceptable for management to focus solely on the needs of one or two stakeholder groups. In this article, the authors have introduced two frameworks： sun cube and stakeholder relationship matrix. These tools can be useful in mergers and acquisitions （M＆A） process for conducting a stakeholder analysis.
基金Foundation item： Supported by the Humanities and Social Sciences Foundation for the Youth Scholars of Ministry of Education of China（12YJCZH217） Supported by the Natural Science Foundation of Anhui Province（1308085MA03） Supported by the Key Natural Science Foundation of Educational Committe of Anhui Province（KJ2014A255）
文摘In this article, the author establishes the strong laws for linear statistics that are weighted sums of a m-negatively associated(m-NA) random sample. The obtained results extend and improve the result of Qiu and Yang in [1] to m-NA random variables.
基金partly supported by Natural Science Foundation of China(11471332 and 11071246)
文摘In this article, we prove the existence and obtain the expression of its solution formula of global smooth solution for non-homogeneous multi-dimensional（m-D） conservation law with unbounded initial value; our methods are new and essentially different with the situation of bounded initial value.
基金The project supported by the National Natural Science Foundation of China(19891180)
文摘This paper presents a new description for brittle solids with micro- cracks under plane strain assumption.The basic idea is to extend the conservation laws such as the J_j-vector and M-integral analysis used in single crack problems to strongly interacting crack problems.The M-integral contains two distinct parts.One of them is a summation from the well-known relation between the M-integral and the stress intensity factors(SIF)at both tips of each crack.The other,called as the additional contribution,is obtained from the two components of the J_j-vector and the coordinates of each microcrack center in a global system.Of great significance is the clarification of the confusion about the dependence of the M-integral on the origin selection of global coordinates,provided that the vector vanishes at infinity and that the closed contour chosen to calculate the integral and the vector encloses all the microcracks completely.The M-integral is equivalent to the decrease of the total potential energy of the microcracking solids with the strong interaction being taken into account.The M-integral analysis,from a physical point of view,does play an important role in evaluating the damage level of brittle solids with strongly interacting microcracks.
文摘Constantine M. Dafermos has done extensive research at the interface of partial differential equations and continuum physics. He is a world leader in nonlinear hyperbolic conservation laws, where he introduced several fundamental methods in the subject including the methods of relative entropy, generalized characteristics, and wave-front tracking, as well as the entropy rate criterion for the selection of admissible wave fans. He has also made fundamental contributions on the mathematical theory of the equations of thermomechanics as it pertains in modeling and analysis of materials with memory, thermoelasticity, and thermoviscoelasticity. His work is distinctly characterized by an understanding of the fundamental issues of continuum physics and their role in developing new techniques of mathematical analysis.
