Dario villanueva is professor of literary theory and comparative literature at. While it is clear that no single theory will never be able to address the full range of merger phenomena, reference points fill in some of the blanks. The lack of customers and suppliers in mergers and. At present, most textbooks and books on comparative literature combine the. Voesenek the effects of mergers and acquisitions on firm performance 9 1990. The importance of mergers and acquisitions in todays economy rima tamosiuniene1, egle duksaite2. Definition, theory and researches emel kefel abstract the literary work, born out of the national culture, is enriched by the geography. Theories in merger and acquisition free download as powerpoint presentation. To know theory a nd practice of comparative literature will provide numerous be nefits to not only comparatists b ut also national, general and world literatures. This is the main issue of the technology management literature which concentrates on the conditions for realizing technological synergies.
Review of the merger and acquisition wave literature. Hutcheson macaulay posnetts views on comparative literature rested on a gradual process of change and development model. A theory of mergers and firm size we propose a theory of mergers that combines managerial merger motives with an industrylevel regime shift that may lead to valueincreasing merger opportunities. Precedents for such and similar arguments can be found in the history of comparative literature, but are not entirely convincing when applied to the current state of the field in america and elsewhere. Rhodeskropf, robinson and viswanathan 2005 provide empirical evidence consistent with the market valuations theory of merger waves. He proposed that the fundamental principles of the subject were social evaluation and individual life of man. On the basis of these three measures, literature on mergers in india with. By deploying ratio analysis, kemal 2011 examined the postmerger financial performance of. The key principle behind buying a company is to create shareholder value over and above that of the sum of the two companies. Tanm, yontem ve ncelemeler 349 comparative literature. Subsequently, the empirical evidence is examined on. Profitability analysis of mergers and acquisitions.
This study focuses on cross border mergers and acquisitions by indian firms. It develops an overview of antecedents by focusing on exogenous. The process theory claims that the decision to merge is driven by the strategic decision process of a firm. Even though glaser and strauss 1967 focus on defending building cases from theory rather than on actually how to do it eisenhardt, 1989. Mergers and acquisitions are usually, but not always, part of an expansion strategy.
While doctoral students may also earn the master of arts a. Types, regulation, and patterns of practice john c. Review of literature linking corporate performance to mergers and acquisitions 90 cut costs or boost revenues by more than enough to justify the price premium. In the longstanding and divisive debate on comparative literature, comparatist scholars from both the great european tradition and the southern hemisphere agree on the importance of two elements. According to this theory if the management of firm a is more efficient than the management of firm b and after firm a acquires firm b the efficiency of firm b is brought upto the level of efficiency of firm a. The effects of mergers and acquisitions on research and development in technology firms bachelor thesis in international business. Corporate mergers and acquisitions questia online library. Such mergers are increasingly occurring with film studies. The construction of a new paradigm of comparative literature. The fundamentals of strategic logic and integration for. Mergers and acquisitions edinburgh business school. Discover librarianselected research resources on corporate mergers and acquisitions from the questia online library, including fulltext online books.
Empirical results reveal that many of mergers were disappointed. The interviews are analysed with the help of the theoretical framework and other literature through three themes. Comparative literature, criticism and mediar encyclopedia of life. The cost and benefit analysis of the mergers and acquisitions affect the decision by the managers and the shareholders of whether to take up a specific merger and acquisition. Profitability analysis of mergers and acquisitions mergers and acquisitions around the globe represent a huge reallocation of resources, within and across countries and therefore, it has been the interest of empirical studies for many years.
Coates iv1 the core goal of corporate law and governance is to improve outcomes for participants in businesses organized as corporations, and for. Department of comparative literature at yale teaching literary theory. But whether in reality it does that or not, has to do with how the customers and suppliers act or react towards the acquisitionmerger. Merger analysis, industrial organization theory, and. A reference point theory of mergers and acquisitions malcolm baker, xin pan, jeffrey wurgler. Review of the literature on the impact of mergers on. Cooperative merger and acquisition activity, 19801998 economic model of cooperative mergers and acquisitions despite the depth of both empirical and qualitative studies on merger and acquisition activity, a welldefined, general theory of. Its a highrisk environment where mistakes can damage your own career, or cause unnecessary problems and pain for many other people. Pdf the purpose of this paper is to make a comparative assessment of the status of banks. A reference point theory of mergers and acquisitions. In a merger, either the acquirer or the target survives.
Valuation for mergers and acquisitions second edition barbara s. The effects of mergers and acquisitions on research and. This module is designed to familiarize students with the history of comparative literature as an academic discipline, to develop their ability to analyse critically the major conceptions of comparative literature that have emerged over the twentieth and twentyfirst centuries, and to enable them to apply theories of comparative literature in the analysis of literary movements. Corporate finance the use of judgmental anchors or reference points in valuing corporations affects several basic aspects of merger and acquisition activity including offer prices, deal success, market reaction. Aspects of the theory of comparative literature and a. There have been three merger waves in the 1960s with the multinational takeovers, in the. Pdf comparative literary studies in the twentyfirst century. Most of the empirical literature on merger outcomes is based on stock price. Pdf in an increasingly globalised and globalising world, culture appears as an. In our forthcoming journal of finance article eat or be eaten. Complexity theory and content analysis perspectives a dissertation presented. The effect of mergers and acquisitions on the performance. Initially, the fundamental factors, and the underlying theories, causing mergers is.
Two of the most important stylized facts about mergers are the following. Introduction merger and acquisition both are strategic decision and an aspect of corporate strategy one plus one makes three. Accordingly, the overvaluation theory posits that more acquisitions will happen in periods of bubbles. The effects of mergers and acquisitions on firm performance. On the basis of these three measures, literature on mergers in india with those occurring in. It is my hope to further the literature that promotes the case for placing greater emphasis on proactive organizational change initiatives in mergerrelated discussions and strategies. Some thoughts about the future of comparative literature. Impact of mergers and acquisitions announcement on. This chapter provides a framework for what is known about such waves, presenting the main characteristics of the five major waves during the last century. The department of comparative literature offers a graduate program leading to the doctor of philosophy ph. Typically a merger involves the combining of two entities to form a new entity or merging of one entity into an existing entity. Pdf comparative literature and the question of theory.
The 2nd principle of comparative cultural studies is the theoretical as well as methodolo. The rourth general principle of comparative literature is its interest to study. Mergers and acquisitions motives jrisy motis 1 toulouse school of economics ehess gremaq and university of crete jrissy. More than half of all mergers and acquisitions during the last century cluster within relatively short periods of intense activity known as acquisition waves. It becomes still more difficult task when the comparatist has to take into consideration the multidimensional. The importance of mergers and acquisitions in todays. Definitions of mergers and acquisitions merger is a transaction when two companies decide to combine their operations. Statement of the problem pritchett 1987 warns that the costs of ineffective mergers will be realized in lost.
To date, academic researchers have not yet proposed a complete theory that completely and perfectly integrates the synergy, private benefits and hubris hypotheses to explain why the three hypotheses can all be supported. The effect of mergers and acquisitions on the performance of companies. The university of san francisco success factors in mergers and acquisitions. Willig department of justice merger analysis, industrial organization theory, and merger guidelines the leadership of the antitrust. I propose a categorization of such motives based on the residual. On the basis of these three measures, literature on mergers in india with those occurring in another 23 countries was compared. All legal entities that are consolidated are dissolved during the formation of the new company, which usually has a new name. They can be horizontal deals, in which competitors are combined. Acquisition and merger process through the eyes of employees. Most of these strands of literature ignore the fact that a merger may affect the ability of the related firms to innovate. Thus, this study attempts to propose an integration theory. Mergers and acquisitions edinburgh business school ix preface an understanding of mergers and acquisitions as a discipline is increasingly important in modern business. Basis for horizontal merger it may be social gain as well as private gain. In india comparative indian literature has a strong case on account of.
As a result of a merger transaction, two individual companies cease to exist and a new combined company is created. Literary theory at the university of pennsylvania, repre sents the institutional. Although the bestknown innovation capital is usually intellectual. Theory of comparative literature the term comparative literature is difficult to define for it evolves not one but two or even more than two literatures in comparison at the same time. Effects of mergers and acquisitions on the economy. Review of literature linking corporate performance to. Pdf theory and practice of mergers and acquisitions. Reflection on the sphere of theoretical studies in comparative literature. A glance at any business newspaper or business news web page will indicate that mergers and acquisitions are big business and are taking place all the time. Research studies reported that more than twothirds of large merger and acquisition deals fail to create value for shareholders.
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