Review of Literature Linking Corporate Performance to Mergers and Acquisitions
Author | : Tariq Hassaneen Ismail |
Publisher | : |
Total Pages | : |
Release | : 2011 |
ISBN-10 | : OCLC:1290779109 |
ISBN-13 | : |
Rating | : 4/5 (09 Downloads) |
Download or read book Review of Literature Linking Corporate Performance to Mergers and Acquisitions written by Tariq Hassaneen Ismail and published by . This book was released on 2011 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The purpose of this paper is to synthesize and analyze prior literature of mergers and acquisitions (Mamp;A) and its effects on the financial performance in an attempt to determine factors that might influence post-mergers and acquisitions performance. The main conclusion is that there are inconclusive results among studies on the literature, where, corporate performance is improved in some cases but not in others. Previous studies are using varieties of measures to examine the impact of Mamp;A on corporate performance, where measures might be accounting measures-based, market measures-based, mixed measures, or qualitative measures-based. In addition, there is a dispute regarding the factors that affect the reported performance, where eight factors might affect performance as follows: (1) method of payment (Cash or Stock), (2) book to market ratio, (3) type of merger or acquisition transaction (related or unrelated), (4) cross-boarder versus domestic Mamp;A, (5) mergers versus tender offers, (6) firm size, (7) macro economic conditions, and (8) time period of transaction. Managers should be aware of the impact of such factors on post-merger corporate performance to accurately evaluate proposed offers of mergers and acquisitions and take sound decisions.