Synergistic gains from corporate acquisitions and their division between the stockholders of target and acquiring firms

Abstract

2016-12-26T14:59:35

Human Resources Turnover as an Asset Acquisition, Accumulation and Divesture Process

“…Specifically, divesting firms gain wealth by better specialization and agency cost reduction while acquiring firms loose wealth by loosening focus and management protection, respectively. Synergistic theories argue that restructuring aims at wealth creation and is due to reasons such as shifts in technology and the efficient size of the firm, changes in transaction costs of specialized assets and the emergence of profit opportunities as the economy evolves (see, for example, Bradley, Desai & Kim, 1988;Coase 1937;Klein, Crawford and Alchian, 1978). These theories postulate that the "synergies" between transacting firms will symmetrically create wealth for both divesting and acquitting firms.…”

Réplica 1 - Crescimento Organizacional, Tamanho das Firmas e Valor Econômico

“…Analisemos, por exemplo, o processo de crescimento inorgânico por meio de fusões ou aquisições de empresas. Vários estudos, particularmente da década de 1980, apresentam evidências de que fusões e aquisições, em média, não geram retornos anormais positivos para as empresas adquirentes (e.g., Bradley, Desai, & Kim, 1988;Jensen & Ruback, 1983). Entretanto, como sugerem Capron e Pistre (2002), esses retornos podem apresentar alta variância, o que significa que algumas operações podem apresentar altos retornos positivos e outras podem gerar altos retornos negativos.…”

What Drive the Damage to Post-Merger Operating Performance?

“…Bradley et al (1988) note that multiple-bidding contests are more likely to occur during merger waves, and so during the wave period bidders are more likely to offer higher premiums as they are faced with greater competition. Even bidders who do not face open rivalry may pay higher premiums during the merger waves to forestall the possibility of other bidders entering the race.…”