Along with economy growth, trends of merger and acquisition (M&A) between organizations have become an important issue in both geographical and strategic terms. Through M&A, firms are able to utilize their resources, enhance their marketing channels and penetrate markets with better efficiency. However, how do products grab consumers¡¦ eyes against competitors? And how do firms maintain consumer loyalty? ¡§Brand¡¨ is a critical factor. When discussing issues relating brands, ¡§brand equity¡¨ is something one would never skip. The ¡§brand equity¡¨ means the value added of a brand, containing the overall conception and attitudes of consumers. Only through constructing and creating brand equity, firms could gather the unique value possessed by their brands. This thesis aims at discussing the relation between M&A, brand associations, the fit of target product, willingness to purchase and brand equity. This study served cellphone products as example and conducted four experiments. According to experiment result, the relationship between brand image of product and the product we want to buy is high before M&A, the brand equality and purchase intension are better than the relationship between brand image of product and the product we want to buy is low. This thesis use different fit of brand image to buy of different types of ingredient brand alliance, could affect the brand equity. Besides, different kinds of consumer could have different level of emphasising on the ingredient of integral brand alliance. When acquirers¡¦and acquirees¡¦possess high brand association and fit of brand image, brand equity of the acquirers¡¦would rise, especially in the parts of trustworthiness. Thus firms could cooperate with specialized firms in order to gain trusts from consumers. It is mention worthy that negative relations are documented in the product performance parts, thus, firms should pay attention on after-sales services and other parts instead of product alone after the M&A for the sake of brand equity and to let consumers enjoy better services.

<p>Abstract</p><p>Keeping the key individuals in a post merger and acquisition situation is vital to preserve the value of the investment. Yet it is not uncommon, in relation to mergers and acquisitions, that key individuals not only leave the organization but assumes a position with a competitor or even start a competing business. This problem was highlighted as a sug-gested topic for this thesis by Nordic Construction Company (NCC).</p><p>Findings from interviews with 4 key individuals at NCC and 6 individuals with a combined experience of the human resource management aspect of the merger and acquisition process and its aftermath, show that the primary reasons why key individuals leave is, even if the deciding factor differs, strongly linked to uncertainty that can be reduced with a suffi-cient communication strategy.</p><p>This thesis suggests a number of potential actions of improvement to the NCC merger and acquisition process and its aftermath. The following human resource influences should improve the NCC merger and acquisition process in order to prevent the loss of key individuals</p><p>• Introduce the human resource aspect into the strategy discussion during the merger and acquisition preparation phase.</p><p>• Infuse human resource related enquiries into the discussion with the target organization’s owners, during the initial due diligence phase.</p><p>• Conduct qualitative and quantitative human resource research that relate to the set human resource management strategy, during the due diligence phase as soon as access to the workforce individuals have been granted.</p><p>• Implement extraordinary PLUS conversations with key individuals shortly after the closing of the deal process.</p><p>• Modify the welcome package that is communicated in relation to the merger or ac-quisition so that it includes a list of communication channels, a contact information list and a message in alliance with the human resource strategy. This message should put the individual in the center by focusing equally on the expectations flowing from the individual to the new organization and vice versa.</p>

The most recent wave of Merger and Acquisition (M&amp;A) sparked by the emergence of Internet and the growing importance of biotechnology, where firms use M&amp;A to integrate innovation capabilities of smaller entrepreneurial firms. This strategy is commonly seen within the medical technology industry, where most research has shown that M&amp;A often destroy those innovation capabilities that made the acquired firm attractive in the first place. This thesis investigates the organizational cultural changes due to an acquisition and its impact on the acquired firm’s creativity and product innovation. The research design of this essay is a qualitative case study based on interviews carried out at a medical technology company that was acquired in 2008. The results of this case study illustrated that the factors that affect creativity and product innovation in a post-acquisition are; communication, time, formalization, money, teamwork and risk-taking, where risk-taking affects product innovation the most.

This thesis provides empirical evidence on the relation between concentrated ownership and the long term operating performance of acquiring firms. Large shareholders are generally viewed as beneficial monitors of corporate performance but high levels of concentration can lead to potential expropriation from minority shareholders via managerial entrenchment, tunneling, or sub-optimal investment decisions. This problem is potentially greater in firms with separation of voting and ownership rights. This thesis investigates the performance around takeovers in English origin countries other than the US by following the classification of La Porta, Lopez-de-Silanes, Shleifer and Vishny (1998). While generally considered similar to the US, these countries vary with respect to ownership concentration and investor protection. This thesis controls a broad set of corporate governance mechanisms including first generation governance measures like CEO positions, board characteristics, and other blockholders. Furthermore, this thesis also examines whether different degrees of second generation governance mechanisms such as anti-director rights, accounting standards, legal enforcement, and extra-legal institutions lead to different levels of M&A performance. In addition, this thesis includes the new legal indexes recently developed by Djankov, La Porta, Lopez-de-Silanes and Shleifer (2006); these measures have yet to be examined through empirical research. By using an accounting based methodology, this thesis presents Healy, Palepu and Ruback (1992) abnormal post cash flow return regression-based results and results of a change model (Ghosh 2001). Moreover, this thesis refers to the sample matching techniques in Barber and Lyon (1996) and develops the industry, size, and pre performance benchmark. The principal finding of this thesis is that M&A transactions should improve the long-term financial and operating performance of merging firms to reflect that accounting performance can capture real economic creations. After controlling for well documented governance mechanisms and deal characteristics, the relationship between concentrated ownership and the level and change in operating cash flow returns after takeovers is non-linear. Value creating deals are associated with higher levels of concentration consistent with decreasing agency costs as the large shareholder’s wealth invested in the acquiring firm increases. Further, separation of ownership and voting rights leads to greater value destruction; acquiring firms with controlling CEO make significant improvements in post acquisition performance after controlling pre-performance; and the presence of CEO-Chairman duality and board size are both significantly negatively associated with acquisition operating performance. This thesis also finds, although all acquiring firms are from English origin countries, that the greater investor protection, as measured by the initial anti-director right index in La Porta et al. (1998) and revised anti-director rights index in Djankov et al. (2006) has a positive impact on operating cash flow returns from acquisitions. However, this thesis does not document any differential performance with respect to the extra- legal systems of Dyck and Zingales (2004) and the anti-self-dealing index of Djankov et al. (2006).

abstract: This paper investigates the role of top management and board interlocks between acquirers and targets. I hypothesize that an interlock may exacerbate agency problems due to conflicting interests and lead to value-decreasing acquisition. An interlock may also serve as a conduit of information and personal experience, and reduce the cost of information gathering for both firms. I find supporting evidence for these two non-mutually exclusive hypotheses. Consistent with the agency hypothesis, interlocked acquirers underperform non-interlocked acquirers by 2% during the announcement period. However, well-governed acquirers receive higher announcement returns and have better post-acquisition performance in interlocked deals. The proportional surplus accrued to an acquirer is positively correlated with the interlocking agent's ownership in the acquirer relative to her ownership in the target. Consistent with the information hypothesis, when the target's firm value is opaque, interlocks improve acquirer announcement returns and long-term performance. Interlocked acquirers are also more likely to use equity as payment, especially when the acquirer's stock value is opaque. Target announcement returns are not influenced by the existence of interlock. Finally, I find acquisitions are more likely to occur between two interlocked firms and such deals have a higher completion rate. / Dissertation/Thesis / Ph.D. Business Administration 2012

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The container shipping industry is essentially a service industry, based on the derived need of shippers wanting to transport their goods to buyers around the world. The industry relies on the volume of world trade and consequently is highly cyclical with its profitability being dependent, in large part, on the health of the global economy. It is also a highly capital intensive industry that requires large amount of investment in large scale fixed assets, such as ocean vessels, ports facilities, terminal equipments, global office networks and communication infrastructure. The industry has been undergoing a period of restructuring and consolidation in the 1990s, reflected in both merger and acquisition and in the formation of global alliances. This paper will explore the literature on growth alternatives and competitive advantages of the industry. The specific case on NOL/APL growth path and its key success factors of strategy-performance relationship will also be identified. This paper will conclude by making some suggestions on longer-term strategy for the company in order to generate sustainable profitability and financial success for the NOL/APL group.

The evolution of big business in manufacturing and some service industries, together with the role played in this by merger and acquisition (M&A) activity has been thoroughly researched and is well documented. However, despite' the increasing economic and social importance of the UK hotel industry, its development has been largely neglected. Therefore, this thesis set out to explore the development of big business in the hotel industry through the study of M&A activities. This study employs the multiple case study approach (four UK hotel companies), using M&A theory as the theoretical framework; extensive historical secondary data and semi-structured interviews were carried out for the study, covering a period of 26 years. The analysis was conducted by synthesising data with the M&A theory, in terms of two levels, organisational motives and macro environmental factors. The findings confirm those in the existing literature on what is encompassed by the term big business and the part played by M&A activity in the creation of big business. They also suggest that in the hotel industry the acquisition of brand name and brand rights is an important motive, one which has been neglected in the general M&A literature discussion. These findings added several new dimensions to big business concepts, through illuminating the role of brand and brand right acquisition in the context of the UK hotel industry. This thesis confirms the utility of deploying the wide range and large quantity of publicly available historical secondary information, which is rarely used. In addition, the application of a qualitative and longitudinal approach, applied to management theory, has broadened the research agenda in the study of hotel business, business history and business management theory.

This paper examines the relationship between national culture differences and five-day cumulative abnormal returns of acquirers around cross-border merger announcements. The sample consists of 1,200 cross-border deals by frequent acquirers from emerging countries for the period of January 1, 1985 to June 30, 2008. The main objective is to analyze the relation between the difference in Hofstede (1984)’s four cultural dimensions --- power distance, individualism, masculinity, and uncertainty avoidance and the merger performance. The results imply the compatibility of some cultural dimensions, individualism in particular, that result in gains in merger. The results also show that the cultural effects vary with the firm size. In addition, the evidence provides support for the hubris hypothesis by Roll (1986).

In the present dissertation, we study tax competitions for foreign direct investment, which includes the study of greenfield investment with the firm's ownership problem and the cross-border merger and acquisition (M\&A). It sheds light on the literature of public finance, international economics, and industrial organization. In chapter 1, we develop an open economy model with two segmented countries and one monopoly firm which registered in one of the countries. Our results show that when there is an exogenous transportation cost when exporting, the market size plays an important role in tax competition, however, when there is an endogenous tariff determined optimally by each country, the market size does not matter in the tax competition. Chapter 2 and 3 study the tax competition for a post-cross-border merger and acquisition firm, which the firm has three location options, located in either of the countries or both. We found that when the governments have two tax instruments, the lump-sum tax and tariff, the market size and price policy play an important role in tax competition. Moreover, when the governments utilize the lump-sum tax as the only instrument for tax competition, both the firm and countries will be better off when the firm keeps both plants.