This study intends to examine the occurrence and effectiveness of minority block transactions in the presence of financial constraints in target firms. Minority transactions represent a strategic decision with specific characteristics if compared to the various forms of integration. In fact, several authors claim that minority block transactions may represent an alternative to alleviate financial constraints. However, there are still few studies that empirically address the relationship between financial constraints and the occurrence of such transactions. More specifically, there is no empirical evidence that states that minority transactions actually ease targets\' financial restrictions and foster corporate investment. Using a panel composed of approximately 12.000 deals, results show a positive relationship between the presence of financial constraints in target firms and the occurrence of minority transactions. Moreover, there is a significant difference between on the growth of investment and leverage indicators of target firms\' related to its counterfactuals after deal completion, indicating the effectiveness of minority transactions in alleviating such companies\' restrictions. / Este trabalho pretende examinar a ocorrência e a efetividade de transações minoritárias de participação na presença de restrições financeiras nas empresas alvo. Transações minoritárias em empresas representam uma decisão estratégica com características peculiares em relação aos diversos tipos de integração empresarial. De fato, diversos autores afirmam que transações de partes minoritárias de empresas podem representar uma alternativa para aliviar restrições financeiras. No entanto, ainda existem poucos estudos que analisam empiricamente a relação entre restrições financeiras e a ocorrência de tais transações. Mais especificamente, não há evidência empírica que afirme de fato que compras minoritárias de participações em empresas podem aliviar suas restrições financeiras ao investimento. Utilizando um painel composto de aproximadamente doze mil transações minoritárias feitas entre adquirentes americanos e alvos internacionais, os resultados demonstram uma relação positiva entre a presença de restrições financeiras ao investimento em empresas e a ocorrência de transações minoritárias. Adicionalmente, há uma diferença significativa entre os indicadores de crescimento e alavancagem das firmas alvo em relação aos seus contrafactuais após o período da transação, indicando a efetividade dos processos de transações minoritárias em relaxar as restrições financeiras das empresas.

Os desafios de competitividade têm levado as organizações a estruturarem estratégias robustas de crescimento, consolidando a sua atuação em determinados setores ou mesmo levando à expansão das suas atividades para novos mercados e regiões geográficas. As combinações empresariais, caracterizadas por aquisições e fusões, tornam-se cada vez mais relevantes para a viabilização destas estratégias e passam a fazer parte integrante da agenda dos líderes empresariais. Diante dos baixos indicadores de efetividade verificados em operações desta natureza, torna-se importante refletir sobre a sua gestão e identificar as condições necessárias para que as novas configurações organizacionais implementadas resultem alinhadas às orientações estratégicas que motivaram a realização destas transações. Este trabalho insere-se neste tema ao propor um modelo de gestão da mudança organizacional advinda de combinações empresariais e a sua aplicação no setor de ciências da vida. As oportunidades características deste novo setor, com fronteiras ainda pouco estabelecidas, têm gerado uma série de movimentos de combinação em empresas tradicionais do setor químico, em busca de crescimento ou obtenção de indicadores mais elevados de competitividade. Ao propor o modelo de gestão, este trabalho traz duas contribuições para o arcabouço conceitual sobre aquisições e fusões. Em primeiro lugar ele elabora, com base no referencial teórico disponível, um conjunto de categorias para a gestão da etapa de integração entre as empresas participantes de um processo de combinação. A aplicação deste conhecimento na realidade empírica, com adoção de procedimentos estatísticos, levou à identificação de uma nova categoria - denominada clareza de expectativas - que está relacionada ao estabelecimento de relações entre a empresa e os seus profissionais visando fortalecer a adesão e o comprometimento das pessoas com os novos modelos de gestão implementados. A segunda contribuição corresponde à verificação da importância de não dissociar a etapa de integração das empresas do processo decisório que levou à efetivação destas transações. A atenção antecipada às variáveis indicadas neste trabalho, para o momento anterior ao fechamento do acordo de combinação, pode evitar equívocos e conflitos viabilizando uma integração efetiva entre as organizações participantes da operação. / The challenges around competitiveness faced by organizations are leading them to structure robust growth strategies, consolidating their presence in specific economic sectors as well as ensuring their growth in new markets and geographic regions. The combination of companies, identified as mergers and acquisitions, are gradually becoming more important to enable the implementation of these strategies and therefore constitute important components of leaders agenda. It is a key challenge to reflect about the managerial aspects of these transactions due to the low effectiveness indicators identified, researching the required conditions that will enable the alignment between the new organizational configurations and the strategic drivers that motivated their implementation. This study is related to this theme since it proposes a model to manage organizational change that results from this type of transaction. The model is also applied in combinations within the life sciences sector. The potential opportunities identified in this new sector, which has low defined boundaries, have generated some combinations between traditional chemical companies aiming at growing or reaching higher levels of competitiveness. Whilst proposing the management model, this thesis builds two contributions to the conceptual framework around mergers and acquisitions. It designs, as a result of the available theoretical references, one set of categories to manage the integration phase for companies facing combination processes. The application of this knowledge in an empirical reality, enabled by statistical procedures, led to a new category identificaion - named as clarity of expectation ? which refers to the relationship established by the company and its employees and aims to reinforce the people commitment with the new management models implemented. The second contribution shows the importance to connect the integration planning phase to the decision making process that leads into the transaction. The anticipated analysis of the variables presented by this thesis in the previous stage before the deal conclusion can mitigate mistakes and conflicts enabling an effective integration between the companies that are part of these operations.

Este trabalho investiga os impactos provenientes da propriedade familiar em eventos de aquisições. Foram analisados 355 anúncios concluídos de eventos de aquisições, realizados por 122 empresas públicas no período de 2009 a 2013. Os dados foram obtidos do banco de dados da Thomson Reuters SDC Platinum e também da Thomson Reuters Eikon. Foi utilizada a metodologia de estudos de eventos (MacKinlay, 1997; McWilliams & Siegel 1997), para aferir os retornos anormais em aquisições de empresas familiares e não familiares. Para analisar os dados obtidos, foram empregadas análises univariadas, bivariadas e regressões multivariadas reportadas com erros-padrão robustos por Hubber-White Sandwich, e técnica não paramétrica estatística de resampling Bootstrap. Foram empregados, ainda, testes de robustez para a variável explicativa grau de concentração acionária e de benchmark de retorno de mercado. Outrossim, foram adotadas variáveis específicas de empresas familiares, para melhor mensurar o impacto da propriedade familiar sobre os retornos anormais analisados. Como principais achados da dissertação, foram encontrados evidências de que empresas familiares geram valor em aquisições. Encontrou-se, também, que não há evidências de que empresas familiares tenham maiores retornos anormais positivos que empresas não familiares. Reporta-se, ainda, que o retorno anormal está relacionado positivamente à empresa familiar cujo gestor é membro da família controladora. Por outro lado, não se encontraram evidências de que os retornos anormais em aquisições de empresas estejam relacionados positivamente às empresas de primeira e segunda gerações familiares. Por fim, relata-se que não há evidências de que haja relação positiva entre o grau de concentração acionária detida pela família controladora e retornos anormais em aquisições. / This study investigates the impact of family ownership on acquisitions of enterprises. On this purpose, we analyzed 355 acquisitions made by 122 public firms during the sample period 2009 to 2013. The data on acquisitions of enterprises were obtained from Thomson Reuters SDC Platinum and Thomson Reuters Eikon database. This study employs the Methodology of Event Study (MacKinlay, 1997; McWilliams & Siegel 1997) in order to obtain the performance on acquisitions measured by the abnormal return. Furthermore, were employed univariate, bivariate statistical analysis and multivariate regression analysis. Those regressions were reported with robust standard errors by Hubber-White Sandwich. Additionally, as a robustness test, this study reported the non parametric robust statistical test; yclept, Bootstrap. Besides, were applied further robust techniques, due to better measure the impact of the variable family firms on the dependent variable abnormal return. Our findings suggest that there is evidence that family firms generate value on acquisitions of enterprises. Moreover, this study founded that there is no evidence that family firms have higher abnormal returns than non-family firms. This research, withal, sheds lights on the fact that abnormal return it is positively related to family firms which has a family member as a director, vice president or CEO of the company. On the other hand, it is founded on this research that there is no evidence that abnormal returns are associated to the first and second generations. Ultimately, it is reported that there is no evidence that exists positive relation among the variable power concentration (stake owned by the controlling family) and abnormal returns on acquisitions of enterprises.

Este estudo analisa os efeitos da estrutura de propriedade (concentração e tipologia do maior acionista) nas decisões de fusões e aquisições (M&A) em 429 empresas brasileiras, não financeiras, de capital aberto, listadas na BM&FBovespa, entre os anos de 1998 e 2007. Os resultados apontam que quanto maior a concentração de propriedade do maior acionista, menor a probabilidade de ocorrência de uma transação de M&A. Os resultados das análises também evidenciam uma diferença significativa no comportamento de diferentes acionistas controladores na probabilidade de participarem em uma transação de M&A. Este estudo apresenta implicações tanto na gestão de empresas como para investidores externos, já que apontam um efeito significativo tanto do nível de concentração como da tipologia do maior acionista na decisão de M&A, que serão discutidos em mais detalhe ao longo do trabalho. / This study analyzes the effects of the ownership structure (concentration and typology of the largest shareholder) on merger and acquisition (M&A) decisions in 429 Brazilian nonfinancial companies, listed on BM&FBovespa, between 1998 and 2007. The results show that the larger the ownership concentration of the majority shareholder, the lower the likelihood of an M&A transaction. The results also show a significant difference in the behavior across different controlling shareholders in pursuing an M&A transaction. This study has implications for both, management and investors, since they point to a significant effect of both the level of concentration and the typology of the largest shareholder in the M&A decision, which will be discussed.

This thesis aims to examine whether a merger arbitrage strategy is able to generate market neutral alpha in the Nordic region. Similar studies of merger arbitrage strategies in both the US and Australian market find market neutral alpha. To investigate the viability of such a strategy, we developed a “Merger arbitrage portfolio” which invests in 55 deals during 2003-2017 in the Nordic equity capital market. Our findings provide strong support that a merger arbitrage strategy is market neutral, even in times of financial turmoil. An excess return is recorded, however, when estimating the portfolio with the Market Model we find no statistically significant alpha. The results are affected by large outliers. We conclude that our version of the merger arbitrage strategy is not an optimal investment in terms of its Sharpe Ratio, compared to an index using a similar strategy and the stock market.

In the last decade, the number of mergers and acquisitions (M&A) activities by emerging market firms has rapidly increased to exploit growing markets at home and abroad. In order to be successful in their M&A goals, these firms need to develop a specific M&A capability and manage post-M&A processes effectively. Drawing on the dynamic capabilities view, I develop a theoretical framework for emerging market acquirers that outlines the development of the acquisition capability mechanisms. I first examine the influence of prior acquisition experience on acquisition performance. I then go on to study the integration capability of emerging market firms and examine the effect of post-M&A integration strategies on the performance of acquisitions by emerging market firms. The overall results indicate that a firm‘s focal acquisition performance positively relates to prior acquisition experience that is similar to the focal acquisition. Moreover, post-M&A integration strategies vary depending on the geographical similarity of the focal acquisition. Replacing the target‘s top manager is a particularly important determinant of acquisition performance in domestic M&A. Finally, in this research, I also extend the organisational learning view and develop a multi-level analysis that examines the role of business groups alongside firm-level learning from acquisitions. The usual focus in emerging market studies is on the big emerging economies of Brazil, Russia, India and China (BRIC). I focus instead on the country case of Turkey, one of the second tier of ―biggish‖ growing economies of ―MIST‖ (Mexico, Indonesia, South Korea and Turkey). The empirical results are based on a unique hand-collected dataset of acquisitions in Turkey culled from publicly available data. The final dataset consists of 279 acquisitions between 1998 and 2011.

Le premier chapitre montre que le risque de refinancement a un impact sur la performance du marché d’un produit. J'estime que les entreprises ayant une fraction importante de dette à court terme (à savoir, une dette arrivant à échéance dans les trois ans) affichent une croissance nettement plus faible de leurs ventes et de leur part de marché.Le deuxième chapitre étudie comment les fusions et acquisitions horizontales affectent l'évaluation des marchés boursiers. Les annonces de fusions et acquisitions horizontales induisent une revalorisation moyenne défavorable de l'industrie dans un large échantillon d'opérations de fusion et d'acquisition publiques et privées. La réévaluation moyenne des concurrents est un facteur prédictif important des rendements futurs de l’industrie. La réévaluation des concurrents dépend également du statut public de la cible (positif lorsque la cible est publique et négative lorsque la cible est privée) et varie systématiquement avec des indicateurs de la mauvaise évaluation globale du marché. Nos constatations concordent avec l’idée selon laquelle les investisseurs incorporent de nouvelles informations sur les erreurs d’évaluation à l’échelle de l’industrie dans l’évaluation des entreprises non fusionnées.Le troisième chapitre étudie comment les lois du travail affectent la politique de paiement. Ce document montre que le pouvoir de négociation de la main-d’œuvre influe à la fois sur les décisions relatives à la structure du capital et sur les paiements. J'estime que l'adoption de la loi sur les congés abusifs entraîne une augmentation des dividendes par action, du rendement des dividendes et du ratio de distribution des dividendes, alors que l'effet de levier comptable diminue. / The first chapter studies how refinancing risk impacts product market performance. I find that firms with a large fraction of short-term debt (i.e., debt maturing within three years) exhibit significantly lower growth in sales and market share.The second chapter asks how horizontal M&As affect peer stock market evaluation. Horizontal M&A announcements induce negative average industry peer revaluations in a large sample of public and private M&A transactions. The average peers’ revaluation is a strong predictor of future industry returns. The revaluation of peers also depends on the public status of the target (positive when the target is public and negative when the target is private) and varies systematically with proxies for overall market misvaluation. Our findings are consistent with the idea that investors incorporate new information about industry-wide misvaluation into the valuation of non-merging firms.The third chapter studies how labor laws affect payout policy. This paper shows that labor bargaining power affects both capital structure decisions and payout policy. I find that the adoption of the wrongful discharge law leads to an increase in dividends per share, dividend yield, and the dividend payout ratio whereas book leverage decreases.

Submitted by Silvana Teresinha Dornelles Studzinski (sstudzinski) on 2017-02-10T12:29:09Z No. of bitstreams: 1 Rafael Spolavori_.pdf: 464763 bytes, checksum: cd9e32b70d64c19c4da6d1cb9e5deef9 (MD5) / Made available in DSpace on 2017-02-10T12:29:09Z (GMT). No. of bitstreams: 1 Rafael Spolavori_.pdf: 464763 bytes, checksum: cd9e32b70d64c19c4da6d1cb9e5deef9 (MD5) Previous issue date: 2016-12-19 / Nenhuma / O presente trabalho analisa os efeitos de fusões e aquisições no ensino superior privado brasileiro sobre a qualidade e desempenho acadêmico dos cursos superiores de Administração, Direito e Pedagogia. A metodologia se divide em duas etapas, primeiro realizou-se o PSM (propensity score matching) para obtenção do suporte comum e posteriormente estimação pelo método das diferenças em diferenças. Quanto à análise dos efeitos da aquisição, os resultados indicam uma proporção maior de professores doutores nos cursos de administração e pedagogia e proporção maior de professores mestres no curso de administração. O Conceito Preliminar de Curso (CPC), média dos alunos concluintes na prova de formação geral do Exame Nacional de Desempenho dos Estudantes (Enade) e média dos alunos concluintes na prova de conhecimentos específicos do Enade não apresentaram efeito significativo com as aquisições. Considerando o Índice Geral de Cursos (IGC) das Instituições de Ensino Superior (IES) adquiridas, também não demonstraram efeito significativo com as aquisições. Esses resultados indicam que a análise dos efeitos das fusões e aquisições ainda é incipiente e deve ser retomada com a divulgação de novos e atualizados indicadores de qualidade. / This study analyzes the effects of mergers and acquisitions in the Brazilian private higher education sector on quality and academic performance of the higher courses of Business Administration, Law and Pedagogy. The methodology is divided in two stages; first, the PSM (propensity score matching) was obtained in order to geet the common support; then, we estimated the acquisition effect using the difference-difference method. As to the analysis of the acquisition effects, the results indicate a higher proportion of PhD professors in the Business Administration and Pedagogy courses, and a higher proportion of professors with Master’s degree in the Business Administration course. The Preliminary Course Concept (PCC), the average of the graduating students in the Nacional Student Performance Exam general education test and the average of the graduating students in the Nacional Student Performance Exam specific knowledge test did not present significant effects with the acquisitions. The General Course Index (GCI) of the acquired Higher Education Institutions (HEI) did not have significant effects with the acquisitions either. These results indicate that the analysis of the effects of mergers and acquisitions is still incipient and should be continued with the dissemination of new and updated quality indicators.

This thesis consists of three essays and studies CEO compensation and mergers and acquisitions in empirical corporate finance. The first essay is sole-authored and is titled ‘The Effect of Social Interactions on Executive Compensation.' The second essay ‘The Role of Investment Banker Directors in M &A: Can Experts Help?' is a joint work with Qianqian Huang, Erik Lie, and Ke Yang. The third essay is titled ‘The Strategic Use of CEO Compensation in Labor Contract Negotiations' and is coauthored with Erik Lie and Tingting Que. In the first essay, I examine how executives' social interactions affect their compensation. Using the social networks among 2,936 chief executive officers (CEOs) during 1999-2008, I report that the compensation of a pair of socially connected CEOs is significantly more similar than that of a pair of non-connected CEOs. I further find that CEO compensation responds to a peer's change in pay caused by industry performance, especially if that change in pay is positive rather than negative and when the firm is suffering from weak corporate governance. I interpret these results as consistent with the notion that relative earnings concerns within social networks affect negotiations about compensation. Finally, I find that the past practice of backdating stock option grants spread across social networks, suggesting that social networks serve as a conduit for interpersonal information flow about compensation practices. Taken together, I show that CEOs' peer interactions have a substantial impact on executive pay. In the second essay, we examine how directors with investment banking experience affect firms' acquisition behavior. We find that firms have a higher probability of acquisition when an investment banker is a director. Furthermore, acquirers with investment banker directors on the board have significantly higher announcement returns, especially if the deal is relatively large and the bankers' experience and/or network is current. We also find evidence that investment banker directors help reduce the takeover premium and advisory fees paid to outside consultants. Finally, the presence of investment banker directors is positively related to long-run operating and stock performance. Lastly, in the third essay, we study whether firms strategically alter CEO compensation to improve their bargaining position with labor unions. We conjecture that (i) firms in heavily unionized industries offer lower compensation packages to their CEOs than do their non-union counterparts, (ii) unionized firms temporarily curtail CEO compensation before union contract negotiations, and (iii) the curtailment in compensation is most pronounced for option grants due to their discretionary nature. Our results support these conjectures. We also find that CEOs are more likely to sacrifice compensation if they hold a relatively large stake in the company whose value depends on the contract negotiations. Finally, we report evidence that curtailing CEO compensation helps reduce the negotiated salary growth.

This study investigates two variables, number of investors and an intangible assets/revenue ratio, that are potential industry-specific predictors of deal failure in technology M&A. I document that number of investors has a significant ability to predict deal failure in all M&A transactions: an increase in number of investors decreases deal failure rates. However, I find that neither variable is able to significantly predict deal failure differently for transactions involving technology targets and those involving non-technology targets. Broadly, my findings suggest that technology M&A and non-technology M&A may share more similarities than previously expected in the ultimate goal of properly evaluating them.