acase@tulane.edu / Despite the recent advocates for lengthening executive compensation duration to curb short-termism and promote long-term value creation, there is no study investigating whether long pay duration induces better investment decisions in the long run. Using a comprehensive measure of compensation duration, we find that CEOs with long pay duration are more likely to engage in large acquisitions. These acquisitions receive a significantly worse market reaction, and experience lower post-acquisition abnormal operating and stock performance compared with deals conducted by CEOs with short pay duration. Further analysis suggests that negative association between compensation duration and acquisition performance is driven by the use of time-vesting compensation plan. Duration of performance-vesting plans has no significant effect on M&A performance. Lastly, we find that CEOs are likely to engage in more risk-decreasing M&As, as long pay duration plans impose a higher firm risk to executives. The results highlight the complex nature of compensation duration and suggest that focusing on one dimension of compensation design is insufficient to create long-term shareholder value. / 1 / Qi-Yuan Peng

Frequent acquisition activities in high-technology industries are due to the intense competition, driven by short product life cycles, more complex products/services and prevalent network effects. This dissertation theoretically analyzes the circumstances leading to technology-driven acquisitions and empirically tests these within a clearly defined market scenario. / Die zahlreichen Unternehmensakquisitionen in Hochtechnologiebranchen sind einem intensiven Wettbewerb geschuldet, der durch immer kürzere Produktlebenszyklen, komplexere Produktdesigns und extreme Netzwerkeffekte geprägt ist. Die vorliegende Forschungsarbeit hat zum Ziel, die genauen Umstände, die zu technologiegetriebenen Akquisitionen führen, in Form von relevanten erklärenden Einflussfaktoren theoretisch herzuleiten und empirisch zu untersuchen.

<p>In the last decade, there has been a great increase in the number of mergers and</p><p>acquisitions all over the world. This enhancement of the number of transactions is</p><p>included in the most of the previous studies but moreover, many of these studies show</p><p>that the majority of the mergers and acquisitions fail in the objective of creating value</p><p>for the shareholders. This failure ratio is the reason which leads us to the next research</p><p>question: why do the majority of mergers and acquisitions fail?</p><p>In this study, we introduce the basic concepts that must be known before answering the</p><p>research question and the reasons that other authors have pointed out for explaining this</p><p>failure ratio.</p><p>After this theoretical background, we conduct a comparative research of four cases,</p><p>some of them with a successful result and some others with a failure one, in order to</p><p>determine the key factors that explain the reasons why some of the mergers and</p><p>acquisitions fail or success.</p><p>The study shows that there is a wide range of features when determining this failure or</p><p>success. The analysis of the four case studies indicates that most of the reasons for this</p><p>failure or success were previously considered by other authors, but some new reasons</p><p>will be presented.</p>

No description available.

<p>The following is the presentation of our master thesis study which intended to studied from a Human Resources perspective the M&A process. “What defines the integration achievement in a M&A process from a organizational level perspective?” This represents the main issue to answer and discuss about. It was conducted by the analysis of New Wave Group and Orrefors Kosta Boda acquisition process as the case study, representing the reality field and source of practical implications. To answer this research question, it was selected some of the most important elements of the Human Resources Strategies like Leadership and communication, motivation and commitment. Moreover, two main stages made up the attention of our study; the pre stage negotiation, and the post acquisition phase. The principal outcome constitutes the analysis in practical and theoretical terms, of the special condition of acquisitions with one dominant part constituting the “big saviour” and how this change is traduced into the integration process.</p>

I examine the market reaction to merger announcements and the long-term post-merger stock price performance of newly merged firms. For a sample of 484 acquiring firms completing mergers between 1993 and 2000, the average value-weighted abnormal announcement date return (market-adjusted) is a statistically significant -1.02%. On average, this reaction is more negative for firms with "good governance." Specifically, a governance index comprised of three governance variables is significantly negative in a multivariate regression of announcement date abnormal returns. Comp is the percentage of CEO salary consisting of equity incentives (including stock options and restricted stock grants), InsideOwn is the percentage of the firm owned by officers and directors, and InstOwn is the percentage of the firm owned by large outside block shareholders. Value-weighted calendar-time portfolios consisting of the full sample of acquirers exhibit significant abnormal returns of 9.12%, 33.84% and 55.8% for the 12, 36 and 60 months following the merger, respectively. This overperformance is limited to the value-weighted portfolios. There is calendar-time evidence of abnormal performance for some subsamples on a risk adjusted basis. However, when compared to a control group, abnormal performance is limited to large glamour acquirers on a 12-month horizon, large cash acquirers on a 36 and 60-month horizon, and small focusing acquirers on a 60-month horizon. Multivariate analysis of long-run returns reveals that use of equity and corporate diversification are associated with lower post-merger performance. With regard to governance and long-run stock returns, there is also evidence that suggests higher levels of incentive compensation for CEOs is associated with more successful merger transactions for long-term investors.

Syftet med den här magisteruppsatsen är att undersöka hur tillkännagivandet av företags-förvärv påverkar aktieavkastningen på ett uppköpande bolaget. Testet är begränsat till före-tag som enbart är listade på Stockholmsbörsen under perioden 1996 till 2005. För att testa onormal avkastning användes marknads modellen. Resultatet visade att tillkännagivandet av företagsförvärv har en signifikant effekt på avkastningen för aktien för det bolag som ska förvärva. Majoriteten av uppköpande bolag upplevde en negativ onormal avkastning under test perioden (100 dagar före tillkännagivandet och 100 dagar efter). / The purpose of this master’s thesis is to examine the effect a corporate takeover an-nouncement has on share prices for acquiring companies. The test will only involve com-panies listed on the Stockholm Stock Exchange during the period 1996 to 2005. To test the effect an announcement has, abnormal return for a period before and after the takeover announcement was calculated. The findings from the testing showed that takeover an-nouncements have a significantly impact on shareholder return. The majority of acquirers in the sample had negative average abnormal returns during the event period (100 days prior to the announcement and 100 day after).

In the last decade, there has been a great increase in the number of mergers and acquisitions all over the world. This enhancement of the number of transactions is included in the most of the previous studies but moreover, many of these studies show that the majority of the mergers and acquisitions fail in the objective of creating value for the shareholders. This failure ratio is the reason which leads us to the next research question: why do the majority of mergers and acquisitions fail? In this study, we introduce the basic concepts that must be known before answering the research question and the reasons that other authors have pointed out for explaining this failure ratio. After this theoretical background, we conduct a comparative research of four cases, some of them with a successful result and some others with a failure one, in order to determine the key factors that explain the reasons why some of the mergers and acquisitions fail or success. The study shows that there is a wide range of features when determining this failure or success. The analysis of the four case studies indicates that most of the reasons for this failure or success were previously considered by other authors, but some new reasons will be presented.

none

No description available.