The performances of acquired firms in the steel industry: Do financial institutions cause bubbles?

Huh, Kwang-Sook

doi:10.1016/j.qref.2015.03.001

Cited by 9 publications

(4 citation statements)

References 35 publications

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“…While studies showing no change or reduced performance included Huh (2015), which finds that steelmakers acquired by financial institutions have achieved relatively poor or insignificant operating performances after mergers, which is aligned to our results. In the case of pharmacy retail industry, Zhu and ZhuHilsenrath (2015) study a sample 87 large acquisitions in the industry.…”

Section: Previous Work In the Literaturesupporting

confidence: 88%

Do mergers and acquisitions improve firms' financial performance? The case of the U.S. generic drug industry

et al. 2019

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This paper examines the financial performance of all mergers and acquisitions (M&A) involving publicly traded companies that occurred in the U.S. generic drug industry from 1996 to 2017. The control group was chosen using a nearest neighbor matching procedure. Our empirical strategy controls for unobservable firm‐specific fixed effects as well M&A fixed effects. Our findings suggest that profit levels do not change significantly following M&As, but total revenues decline after M&As. Firms undergoing an M&A cut operating expenses but not through reduction in labor expenses or number of employees.

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Section: Previous Work In the Literaturesupporting

confidence: 88%

Do mergers and acquisitions improve firms' financial performance? The case of the U.S. generic drug industry

et al. 2019

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“…According to (Weston & Mulhrin, 2004), through M&A firms can overcome efficient use of limited resources. It is believed that M&A are expected to fuel up the rate of growth of business and they're important to improve the competitiveness of firm and the performances of managers also (Huh, 2015). M&A are considered as the best way to expand the boundaries of ownership by many firms (Dash, 2010).…”

Section: Completedmentioning

confidence: 99%

Mergers and Acquisitions in Selected Frontier Markets of Asia

Ahmed

Afzal

Kanwal³

2018

Signifikan

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This paper aims to provide contemporary and comparative information on mergers and acquisition activities. The findings have shown that Vietnam is very active in mergers and acquisitions activities, for instance in Vietnam 2946 transactions were announced, and 2114 completed in the last decade. Furthermore, Vietnam has a distinctive element of merging local firms; Out of top 20 deals, in 18 transactions target firms and acquirer both were from Vietnam. On the other hand, Sri Lanka has the highest percentage of completed M&A transactions in the last decade compared to Pakistan and Vietnam. In case of Pakistan, the findings suggest that Pakistan has had the highest number of value-based Mergers and Acquisitions deals in comparison to Sri Lanka and Vietnam. Interestingly, even though the number of transactions is higher compared to Sri Lanka and Vietnam; however, mergers and acquisition have had no significant impact on the profitability of Pakistan companies.DOI: 10.15408/sjie.v7i1.6074

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“…Further, entering the steel market requires significant cash outlay, which tends to discourage newcomers with insufficient capital. Higher fixed costs ensure a certain degree of rivalry, as companies are subsequently committed to a certain scale of operations, in order to remain profitable [4]. In rapidly changing competitive business environments, an increasingly important objective of many global steel companies is to enhance their competitiveness by improving their efficiency in their operations [5].…”

Section: Introductionmentioning

confidence: 99%

Efficiency Analysis of Global Steel Companies

Lee

2016

AJMAHS

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This study analyzes efficiency of global steel companies for the period 1997-2008. I employ Data Envelopment Analysis (DEA) to estimate the relative efficiency of global steel companies in using their labor, materials and capital resources to generate sales. Based on a panel dataset for global steel companies for the period 1997-2008, I find that the means (medians) of aggregate, technical, and scale efficiency scores were 0.4954 (0.4619), 0.5803 (0.5420), and 0.8656 (0.9385) respectively. Average aggregate efficiency increased from 1998 until 2002 before trending down. Average technical efficiency increased from 1998 until 2003 before trending down. Therefore, it is apparent that the aggregate efficiency and technical efficiency move together. In contrast, average scale efficiency decreased from 1997 until 2008, which indicated a steadily downward trend from the first year in the sample period. Furthermore, average scale efficiency was greater than average technical efficiency for each year throughout the entire sample period, suggesting that the technical factor was a more important source of inefficiency than the scale factor in each year during the entire sample period. That is, there existed a higher level of technical inefficiency compared with scale inefficiency, indicating that there was more room for improvement in technical efficiency.

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The performances of acquired firms in the steel industry: Do financial institutions cause bubbles?

Cited by 9 publications

References 35 publications

Do mergers and acquisitions improve firms' financial performance? The case of the U.S. generic drug industry

Do mergers and acquisitions improve firms' financial performance? The case of the U.S. generic drug industry

Mergers and Acquisitions in Selected Frontier Markets of Asia

Efficiency Analysis of Global Steel Companies

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