Thesis (Ph.D.)--York University, 2005. Graduate Programme in / Typescript. Includes bibliographical references (leaves 208-222). Also available on the Internet. MODE OF ACCESS via web browser by entering the following URL: http://wwwlib.umi.com/cr/yorku/fullcit?pNR11555

This study analyses the impact of M&As on acquiring company shareholder wealth and market risk through empirical evidence based on event study methods and cross-sectional regressions. The hypotheses investigated relate to the relevance of target status, method of payment, acquirers‘ bidding experience, and diversification motives. The evidence is based on a comprehensive sample of M&A transactions comprising 46,758 initial bids announced in 180 countries over the period 1977-2012, covering 88 industries. The study also investigates the relevance of deal and firm-specific factors affecting the likelihood of the success or failure of a deal once announced. The results of the event study indicate that acquirers‘ abnormal returns are not influenced by uncertainty about whether the announced deals will succeed or fail, which is consistent with the efficient market hypothesis. The event study evidence also confirms that acquirers‘ gains are most significant in cross-border M&As with acquirers located in developed countries and targets in developing countries. Further evidence from cross-sectional regressions confirms that cross-border and cross-industry diversification yields significant announcement gains for acquirers, although in comparison with domestic and focussed deals, such deals carry a greater risk of failure. Diversification has no significant impact on acquirers‘ market or systematic risk. In addition, the evidence with regard to the impact of target status and method of payment suggests that acquirers‘ gains are most significant in stock payment deals involving private or subsidiary targets, while stock payment deals involving publicly-listed targets yield lower returns. In general, cash payment for acquisitions serves to reduce the negative impact of acquiring public targets, while stock payment enhances the positive impact of acquiring private or subsidiary targets. Correspondingly, acquirers‘ market increases with the acquisition of non-public targets, while using cash payment reduces this risk. The overall findings in this regard are robust across various samples and are generally associated with the existence of information asymmetry between acquirers and targets. Finally, the findings reveal that acquirers‘ prior experience of bidding in M&A deals is associated with significantly lower shareholder returns for acquirers, and this also increases their risk. This finding, however, is specific to serial acquirers and generally supports the hubris motive.

Mergers and Acquisitions can be very exciting events for organizations. The promise of top and bottom line growth through synergy with another company can excite executives. Unfortunately, research has shown, this promise very seldom realizes as acquisitions are complex process that require understanding and commitment from all parties, both from the acquiring firm and the acquired firm. The study will start off reviewing the processes that define, in general terms, implementation of mergers and acquisitions. This will be following by a review of the experience of the SASOL Oil acquisition of EXEL Petroleum. A detail investigation of the actual process adopted by the latter organizations will be investigated through empirical research. And finally, the focus of this review is to identify gaps, a lack of certain process and their implementation and statements and actions of ambiguities and ambiguous situations. The resultant outcome of this investigation will assist the researcher, in establishing whether the acquisition of EXEL Petroleum by SASOL Oil provided synergistic value, and whether the implementation of the integration process was thorough and successful. / Prof. A. Boessenkool

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An acquisition bid is like any other proposal for risky investment. The difference arises due to additional source of risk arising from two different sources of information asymmetry due to private knowledge held by the bidder and target. We hypothesize that the bidding process evolves in a manner to optimize bidder's investment in the target through a process of joint signalling. Medium of exchange and bid premium are used as the two signal elements simultaneously by the bidder. We develop a multiple signalling model of the bidding process which is fully revealing in equilibrium.

A report on a research study presented to The Department of Social Work School of Human and Community Development Faculty of Humanities University of the Witwatersrand In partial fulfillment of the requirements for the degree Master of Arts in Social Work January 2018 / When change is introduced in the workplace, marginalized employees may develop a negative attitude towards the process due to ignorance and fear. The study aimed to explore the cleaning staffs’ perceptions on the municipal pre- mergers between two West Rand Municipalities. The focus study was to explore the cleaning staff members’ emotions and reactions towards the merger before it was to be implemented specifically focusing on their perceptions around job security, job responsibility, and communication. There is currently little research done on pre-mergers, especially between political organizations. The research followed a qualitative approach in a form of a case study. Face to face interviews were conducted with seventeen (17) cleaning staff from two Municipalities to collect data utilizing a self – developed, semi structured interview schedule. Sampling was done using a non-probability convenience sampling method. These employees are usually marginalized and have limited if any decision making powers in their working space. The data was analysed utilizing thematic analysis. The findings identified that even the most marginalized of employees could have an impact on change processes based on several factors and there is a relationship between a previous workplace change experience and a new one. The study transformed into a comparative study as marked differences emerged because one of the Municipalities had been through a merger previously and it had a different impact as compared to those who had not gone through the merger process previously. The findings revealed that communication strategies impact on the perceptions of all levels of employees regardless if they participate in the planning process of any organisational change process or not. Open communication and constant consultation by an employer was found to inspire employees to do well because they become confident of their future within the organization. The research findings carve a way to future pre- merger studies with deeper insight into the usually marginalized groups in the workplace. / MT 2018

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The dissertation explores the determinants of the choice between friendly mergers and hostile tender offers as alternative acquisition methods in the market for corporate control. The theoretical model focuses on the target management's firm specific human capital as a primary determinant of the choice. The model predicts that firm characteristics like low insider holdings and high debt, indicating the presence of incumbent management's firm specific human capital, increase the likelihood of a friendly merger as opposed to a hostile tender offer. Other firm characteristics that influence the choice of acquisition method emerge from Jensen's (1986) free cash flow theory. The empirical testing of the hypotheses uses state-based sampling and conditional maximum likelihood estimation of logit models. The results provide strong evidence in support of the theoretical model developed in the dissertation and Jensen’s free cash flow theory. / Ph. D.

published_or_final_version / Economics and Finance / Master / Master of Economics