Corporate entrepreneurship and governance: Mergers and acquisitions in Europe

García, C. José; Herrero, Begoña

doi:10.1016/j.techfore.2022.121845

Cited by 4 publications

(3 citation statements)

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“…Mergers and acquisitions were an attractive activity for researchers of corporate finance to analyze the performance of organizations before and after mergers and acquisitions. The researchers analyzed profit: performance, market integrations, product differentiation, monopoly power, and product and production process efficiencies (Azofra & Olalla, 2008;Bala Shanmugam, n.d.;Bashir & Sajid, 2011;García & Herrero, 2022; Y.W. Tang & M. Metwalli, 2013).…”

Section: Literature Reviewmentioning

confidence: 99%

“…The results explained that. CEO duality and board size made mergers and acquisitions deals successful (García & Herrero, 2022). The study was conducted in India and China to analyze the performance of pre-and post-merger acquisitions.…”

Section: Literature Reviewmentioning

confidence: 99%

“…However, mergers and acquisitions were familiar activities concerning becoming a significant and independent organization and creating an identical place as a dominant business unit in the corporate world. More than a hundred years of history of mergers and acquisitions in developed and developing economies was evident from the US and EU (Bashir & Sajid, 2011;García & Herrero, 2022;Grashuis, 2023). Five merger waves took place in the US in all sectors of the economy, especially in the financial industry.…”

Section: Introductionmentioning

confidence: 99%

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Behavioral and Rational Explanation of Stock Price Performance Around Mergers and Acquisitions in Pakistan: Evidence from Decomposition of Market to Book Ratio

Nadeem,

Irfan,

Ali

et al. 2024

ABBDM

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This study aims to analyze the firm-specific errors (FSSE) as a proxy for mis-valuation and the long-run value-to-book ratio as a proxy for growth opportunities during mergers and acquisitions. In this study, the researcher used the RKRV methodology, which was developed in 2004, to analyze firm-specific errors and future growth opportunities by decomposing the market-to-book ratio in the merged organization of the Pakistani financial sector. The researcher used the mergers and acquisitions data from the financial sector from 2000 to 2021. For the purpose of analysis, the researcher prepared one year of pre-merger and three years of the merger performance of merged financial institutions and compared it with nonmerger financial institutions. The results of non-zero log differences between market values and fundamental values show that in Pakistan firms, firm-specific errors (FSSE) exist in the merged and nonmerger financial institutions. The second component of this methodology was to calculate the long-run value of the book (LRVTB) by taking the difference between the estimated market value and the firm's book value as a proxy for long-run growth opportunities. The results show that no long-run growth opportunities exist in Pakistan's merged and non-merged financial institutions because the difference between estimated market value and book value is negative. The third component of this study is to estimate time series sector error (TSSE) by taking log differences between fundamental value and estimated market value if the firm-specific error exists in the valuation of firms and there are no long-run growth opportunities. The results show that time series sector error also exists in the valuation of financial institutions. The researcher concludes that the mergers and acquisitions intentions are to meet the minimum capital requirement enforced by The State Bank of Pakistan. The merger and acquisition activities that took place during the years 2000 to 2011 are the legislative mergers. The results satisfy the economic shocks theory. There is no issue of agency problems, whether mergers are successful.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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