This thesis aims at investigating the puzzling relationship between cor- porate acquisitions and expected stock returns by reviewing numerous studies on this topic through the use of state of the art meta-analysis tools. Such an analysis is required because many papers examined this relationship but their results varied. We therefore collected 421 estimates from 20 papers and led multiple regressions to test for the presence of publication bias. Throughout this analysis we indeed found evidence supporting the existence of publication bias. Furthermore, we decided to apply Bayesian Model Averaging to reduce the model uncertainty and find out why our abnormal returns estimates greatly vary across stud- ies. Our results suggest that one of the most important drivers are the standard-error terms. This subsequently proves that publication bias is the most responsible for the heterogeneity amongst our estimates. Our analysis fails to demonstrate any positive effects from M&A activity on a firm post-acquisition performance. We suggest that other motives are under-represented in the underlying theory that aims to assess M&A outcomes. Keywords Mergers and Acquisitions, Stock Returns, Abnormal Re- turns, Meta-Analysis, Publication bias Author's e-mail thibault.parreau@gmail.com Supervisor's e-mail...

The origin of market value has not been sufficiently explored in the social sciences. While there is a tendency among economists and sociologists to see value as imported to the market from external sources (e.g. culture, internal preferences), I argue that shifts in market value are often endogenous to the market setting. Perceptions of value, or collective beliefs that specific sets of assets will yield benefits for the owner, are most malleable when markets are unstable. Instability is caused by intense competition and rapid technological change, both of which upset firms' abilities to make consistent profits and retain their market position. Instability amplifies general uncertainty about the best ways to create value.Perceptions of value emerge in unstable markets as firms monitor and mimic their peers, who act as information proxies about the future value of assets. I look at acquisitions within the communications industries from 1997 to 2002 to assess this claim. I expect that firms acquire target assets in the same segments as their closest competitors and market leaders. Unstable market conditions amplify the extent to which firms use their peers to guide their acquisition choices. The collective flow of acquisitions caused by this mimicry creates perceptions of value that become reflected in concrete, standard measures of market value. Investors and other third-party observers use peer behavior as an interpretive frame for estimating value creation. They assume the collective acquisitions are social proof that value is being created and this is reflected in their investment behavior, which in turn drives up the stock prices of acquiring firms.Regression findings support these propositions; although there is weak evidence that market value gains from peer mimicry are long-term. Instead, I find that using peers to frame acquisition value tends to lead to initial overvaluation, which is subsequently corrected through a long-term value discount. I suggest that unstable market conditions tend to lead to speculative behavior and inefficient market pricing.

The objective of this study was to uncover the critical success factors that have significant value-added impacts on corporate acquisitions in the lodging industry. Specifically, this study attempted to systematically discover evidence about the determinants of a successful pre-acquisition management process, and the determinants of successful post-acquisition integration, as well as to identify an appropriate evaluation criteria for determining the post-acquisition performance of an acquisition deal. In addition, this study tried to identify important acquisition objectives of hotel acquirers. This study employed an integrated and holistic viewpoint that includes the most critical corporate acquisition issues simultaneously and in a multi-dimensional framework. As a research methodology, a Delphi technique, which is a non-face-to-face communication method, was employed and proved its effectiveness throughout the study. The key question guiding this research is, what are the critical factors in the overall acquisition process that contribute to successful acquisitions? The findings of this study indicate that the most important acquisition objective for acquirers in the lodging industry is to accelerate the growth of their firms. Further, the most important critical success factor for hotel acquirers before the deal is completed is the identification of the trend of the target firm's cash flow from operations, and reliable and valid information about the target is the most significant dimension in the pre-acquisition management phase. The study results suggest that the most significant key success factor in the post-acquisition integration stage for the lodging industry is to plan and establish a post-acquisition strategy as early as possible, even before the deal is done, while the development of an effective post-acquisition transition strategy immediately after the deal is closed is the most crucial dimension in the post-acquisition integration phase. One of the most significant findings of this study was that hotel executives gave relatively higher importance to pre-acquisition management strategy than to the post-acquisition integration process. In terms of post-acquisition performance evaluation criteria, measures from a value-based management (VBM) approach received the highest rank in evaluating the economic gains of corporate acquisitions in the lodging industry. The study results can help to improve hospitality industry academics' and practitioners' understanding of important M&A phenomena leading to significant changes in the industry's competitive landscape. / Ph. D.

<p>Scientific problem: In order to maintain a competitive position in the market, companies need to create an environment of sustained development. Growing companies basically have two choices: expand internally, known as organic growth, or expand externally by a merger or acquisition (M&A). It is widely known that in almost all acquisitions the price paid by the acquiring firm tends to be much higher than the market value of the target firm before the bid, this is called an acquisition premium. There are different ways of financing an acquisition, for example with cash or stock. Previous research within this topic have concluded the M&As follow the market, as well as premiums. Therefore, an assumption made by the authors is that when there is a boom in the market, the stock exchange quota-tion takes a certain movement and the number of acquisitions that are made increases, as well as the premiums paid, and further to check if the means of payment changes whether there is a bull or bear market.</p><p>Purpose: “The general aim of this thesis is to examine acquisitions on the Swedish market in order to estimate the relation between the OMXS index and the number of acquisition bids, the acquisitions pre-mium and the means of payment.”</p><p>Method: To investigate whether a relation between the OMXS and the amount of take-over bids, simple regression analyses was the preferred model, having the bids as being de-pendent upon market performance of the OMXS index. This way, any significant lag ef-fect, the time it takes for a bidder to present a bid offer, could be recognized and used as a benchmark. This model was carried on to the remaining questions as well; whether premi-ums are affected by the stock market, and which way the acquisitions was financed, cash or stock. The time period selected for data collection was 1994 to 2004, allowing the authors a wide enough time-span to interpret at least one bull, and one bear market. The model will be based upon secondary data of market quotes and a quantitative approach will be util-ized.</p><p>Results: The authors claim that a relation between the number of acquisition bids and market movement does exist. This evidence shows that an important decision as the one of deciding whether or not to merge or acquire another firm, might not be as rational as tho-ught. Instead, it is influenced on the environment around it, with the OMXS index as one of them. When it comes to the two remaining questions, if premiums and means of pay-ment are affected by the OMXS index, the obtained answers do not provide a positive rela-tion. And thus, this thesis cannot support earlier studies that state that a relation is present.</p>

Scientific problem: In order to maintain a competitive position in the market, companies need to create an environment of sustained development. Growing companies basically have two choices: expand internally, known as organic growth, or expand externally by a merger or acquisition (M&amp;A). It is widely known that in almost all acquisitions the price paid by the acquiring firm tends to be much higher than the market value of the target firm before the bid, this is called an acquisition premium. There are different ways of financing an acquisition, for example with cash or stock. Previous research within this topic have concluded the M&amp;As follow the market, as well as premiums. Therefore, an assumption made by the authors is that when there is a boom in the market, the stock exchange quota-tion takes a certain movement and the number of acquisitions that are made increases, as well as the premiums paid, and further to check if the means of payment changes whether there is a bull or bear market. Purpose: “The general aim of this thesis is to examine acquisitions on the Swedish market in order to estimate the relation between the OMXS index and the number of acquisition bids, the acquisitions pre-mium and the means of payment.” Method: To investigate whether a relation between the OMXS and the amount of take-over bids, simple regression analyses was the preferred model, having the bids as being de-pendent upon market performance of the OMXS index. This way, any significant lag ef-fect, the time it takes for a bidder to present a bid offer, could be recognized and used as a benchmark. This model was carried on to the remaining questions as well; whether premi-ums are affected by the stock market, and which way the acquisitions was financed, cash or stock. The time period selected for data collection was 1994 to 2004, allowing the authors a wide enough time-span to interpret at least one bull, and one bear market. The model will be based upon secondary data of market quotes and a quantitative approach will be util-ized. Results: The authors claim that a relation between the number of acquisition bids and market movement does exist. This evidence shows that an important decision as the one of deciding whether or not to merge or acquire another firm, might not be as rational as tho-ught. Instead, it is influenced on the environment around it, with the OMXS index as one of them. When it comes to the two remaining questions, if premiums and means of pay-ment are affected by the OMXS index, the obtained answers do not provide a positive rela-tion. And thus, this thesis cannot support earlier studies that state that a relation is present.

Submitted by Franciele Moreira (francielemoreyra@gmail.com) on 2018-04-18T12:27:09Z No. of bitstreams: 2 Dissertação - Rafel Manoel de Oliveira - 2018.pdf: 1757956 bytes, checksum: 464aaa8d736398dec87202c9df822548 (MD5) license_rdf: 0 bytes, checksum: d41d8cd98f00b204e9800998ecf8427e (MD5) / Approved for entry into archive by Luciana Ferreira (lucgeral@gmail.com) on 2018-04-18T15:24:13Z (GMT) No. of bitstreams: 2 Dissertação - Rafel Manoel de Oliveira - 2018.pdf: 1757956 bytes, checksum: 464aaa8d736398dec87202c9df822548 (MD5) license_rdf: 0 bytes, checksum: d41d8cd98f00b204e9800998ecf8427e (MD5) / Made available in DSpace on 2018-04-18T15:24:13Z (GMT). No. of bitstreams: 2 Dissertação - Rafel Manoel de Oliveira - 2018.pdf: 1757956 bytes, checksum: 464aaa8d736398dec87202c9df822548 (MD5) license_rdf: 0 bytes, checksum: d41d8cd98f00b204e9800998ecf8427e (MD5) Previous issue date: 2018-03-27 / Conselho Nacional de Pesquisa e Desenvolvimento Científico e Tecnológico - CNPq / This study aimed to verify if the acquisitions made by family companies generate better performance than those performed by non-family companies, and if there is a difference between the post-acquisition compensation of executives of family companies and executives from non- family companies of Brazilian companies listed in B3 in the period from 2009 to 2016. The research is supported mainly in the agency relations and the alignment of interests between the principal and the agent, studied by the Agency Theory. Data were collected through Thomson Reuters Ikon and the company reference form. Enterprises were classified as familiar or unfamiliar through the involvement and essential approaches. To achieve the objectives, three multiple regressions were estimated: two related to the performance of acquisitions, with data stacked and a sample of 244 acquisitions (86 companies), and one referring to executive compensation, with a sample of 96 companies with panel data not balanced. The results indicated that: i) Brazilian family firms tend to perform better with corporate acquisitions events compared to non-family acquisitions; and (ii) corporate acquisitions have a greater positive impact on the total remuneration of non-family business executives than on family firms. The results are consistent with the Agency Theory, which says that the gap between ownership and control creates agency conflicts and offers greater opportunities for expropriation by managers. / Este estudo buscou verificar se as aquisições realizadas por empresas familiares geram melhor desempenho do que aquelas realizadas por empresas não familiares, e se existe diferença entre a remuneração pós-aquisição de executivos de empresas familiares e de executivos de empresas não familiares de companhias brasileiras listadas na B3, no período de 2009 a 2016. A pesquisa se suporta principalmente nas relações de agência e no alinhamento de interesses entre o principal e o agente, estudados pela Teoria da Agência. Os dados foram coletados por meio da Thomson Reuters Ikon e pelo formulário de referência das empresas. As empresas foram classificadas como familiares ou não familiares por meio das abordagens de componente de envolvimento e abordagem essencial. Para cumprir os objetivos, foram estimadas três regressões múltiplas: duas referentes ao desempenho de aquisições, com dados empilhados e amostra de 244 aquisições (86 empresas), e uma referente à remuneração dos executivos, com uma amostra de 96 empresas, com dados em painel não balanceado. Os resultados indicaram que: i) as empresas brasileiras familiares tendem a ter desempenho superior com eventos de aquisições corporativas em relação às não familiares; e ii) as aquisições corporativas têm um maior impacto positivo na remuneração total dos executivos de empresas não familiares do que na de empresas familiares. Os resultados são consistentes com a Teoria da Agência, que diz que distanciamento entre a propriedade e o controle gera conflitos de agência e oferece maiores oportunidades de expropriação por parte dos gestores.

Goodwill is one of the most complex and unclear concepts within financial accounting; it is uncertain what it represents as an asset, it is only recognized during the creation of business combinations and is subject to impairments. The question becomes therefore what meaning is actually to be made from goodwill’s definite appearance as a financial statement line item? Due to a perceived low relevance by users of financial statements, it can be stated that the current narration by the accounting item goodwill fails to meet the fundamental purpose of accounting. Therefore, a study to bring a comprehensive clarification of the accounting item is required where this study attempts to achieve this objective by studying the acquirers’ perceptions of goodwill. First was a thorough theoretical background established that compiles a wide collection of relevant literature on goodwill. Then were semi-structured interviews conducted with top managers of nine different parent companies who had recently made a corporate acquisition. Based on the most salient perceptions derived from the empirical data in relation to the comprehensive theoretical background, this study obtained the following findings. Goodwill can be understood through three central aspects: the underlying objective reality as an intangible asset, the PPA process and the subsequential measurement process. In relation to the two latter aspects could a fourth aspect of managers’ influence be derived. In an overarching integration, these four aspects could be synthesized into a final holistic model of the accounting item goodwill. This model iii ultimately represents a comprehensive understanding of the current accounting item goodwill in financial statements based on the perceptions of acquirers. The findings of this study can be used to bring clarity to the users of financial statements when interpreting goodwill and therefore potentially increase its perceived relevance. Foremost can this study’s holistic model be used as a guideline for future research to further elaborate on the understanding of goodwill and generate improvements to its current accounting design.

This study investigates how chief executive officer narcissism impacts the organizations strategic decisions and outcomes. Rooted in the idea that the organization is a reflection of its top managers, I theorize that narcissistic chief executive officers may influence the decision process leading to corporate acquisitions. Furthermore, taking into account the Dotcom bubble and subprime-crash, research on merger waves is incorporated into the research framework as an outside of the organization effect impacting organizational outcomes. Using a sample of 116 acquisitions by 60 chief executive officers at public listed U.S. firms this is tested from 1994-2017. The results show little to no connection between chief executive officer narcissism and corporate acquisitions in total, international acquisitions or through truly large acquisitions. Though there is a positive connection between observable characteristics such as education and age influencing the decision to acquire firms. When comparing the sample of 116 acquisitions to a general market sample of 4379 acquisitions, a connection to merger wave theory is identified. / Denna studie undersöker hur verkställande direktör narcissism påverkar organisationens strategiska beslut och utfall. Med förankring i idén att organisationen är en reflektion av sina ledare, teoretiserar jag för hur narcissistiska verkställande direktörer kan influera beslutsprocessen som leder till företagsförvärv. Vidare, genom att ta i beaktning IT bubblan och finanskrisen, inkorporeras forskning om merger waves i det teoretiska ramverket som en extern faktor vilket påverkar organisatoriska utfall. Med ett urval av 116 uppköp av 60 verkställande direktörer på publika företag i USA testas detta under perioden 1994-2017. Resultatet visar lite till ingen koppling mellan narcissistiska verkställande direktörer och företagsförvärv vare sig totalt, internationella förvärv eller genom mycket stora förvärv. Däremot visar denna studie en koppling mellan observerbara egenskaper såsom utbildning och ålder påverkar beslutet att förvärva företag. När urvalet 116 förvärv jämförs med ett generellt marknadsurval på 4379 förvärv, påvisas det en koppling till merger wave teori.

This thesis consists of four self-contained essays. The common theme of the essays is the behavior of multi-plant firms. An underlying idea in all four of them is that firms possess intangible assets such as management skills and organizational expertise, technological knowledge, marketing know-how and better access to finance capital or natural resources. These assets are typically specific to the respective firm. Due to market imperfections and failures, firms tend to internalize the advantages of firm-specific assets and exploit them themselves rather than sell or lease them to other firms. For instance, intangible assets are often joint inputs in the sense that knowledge developed by one unit can be transferred to another unit within the same firm at a low cost and without diminishing the amount of knowledge available to the first unit. Furthermore, the assets are typically only partly appropriable by their owner, and the market transactions of the assets are hampered due to information asymmetries between a potential buyer and seller. The literature on multinational firms emphasizes the role of intangible firm-specific assets in creating ownership advantages that, together with location and internalization advantages, explain the pattern of foreign direct investments. The essays in this thesis are based on the view that the ownership advantages created by firm-specific assets are the "raison d'etre" of large multi-plant firms. The existence of such assets is assumed to create multi-plant economies of scale and give incentives to make better use of capacity or overheads to gain advantage in size, economies of interdependent activities, integration and/or diversification. Rather than studying the international aspects of firms with intangible assets, the first three essays empirically explore different aspects of multi-plant firm behavior in domestic markets. This analysis has been made possible by the access to unique plant-level data on the thirty largest multinational manufacturing corporations in Sweden. The sample corporations play an important role in the Swedish economy. For instance, the thirty corporations account for about 70 percent of aggregate industrial R&amp;D in 1999. This should be compared with their share of total manufacturing employment, which was about 30 percent during the period of study. The first essay examines the sources of productivity growth within multi-plant firms and particularly emphasizes the role of external restructuring and ownership changes in explaining why multi-plant firms may sustain higher productivity growth as compared to single-plant firms. The second and the third essay explore the idea that large multi-plant corporations exploit their ownership advantages when acquiring partial- and full-firm assets. The second essay analyzes whether technological intangible assets may explain transfers of productive capacity from acquiring corporations to their target. The third essay explores the idea that multi-plant corporations search for targets matching their firm-specific organizational capabilities when acquiring corporate assets. Uncertainty about the matching outcome explains why some acquisitions end in divestitures. However, the likelihood of a "good" match is expected to increase in the buyer's organizational capabilities. The fourth essay, coauthored with Karolina Ekholm, extends the analysis to encompass the international aspects of multinational firms. In this essay, we develop a theoretical model analyzing the localization decisions of multi-plant firms beyond the national borders. More specifically, we develop a two-country model where firms can choose to separate their innovative activities generating an intangible asset from the production of the final good. In our model, there are two agglomeration forces: knowledge spillovers associated with R&amp;D and backward and forward linkages associated with high-tech production. We analyze how the interplay of these forces affects the localization decisions of the firms. / Diss. Stockholm : Handelshögsk., 2003