Thesis
Gains from mergers : effects on share prices, and a comparison of economic gains and financial gains
- Creator
- Rights statement
- Awarding institution
- University of Strathclyde
- Date of award
- 1985
- Thesis identifier
- T7287
- Qualification Level
- Qualification Name
- Department, School or Faculty
- Abstract
- The primary aim of this dissertation is to examine the profitability of mergers. In particular it investigates two separate approaches to measuring gains from merger and whether the literature succeeds in reconciling an apparent conflict. The conflict resides in the anomalous situation whereby securities markets indicate gains from merger but ex post economic performance seemingly does not. In recent years much has been written on business merger. There is ample literature in American business Journals, on pre-merger planning, pre-merger profit ability, and the implementation of merger activities. But little has been written on economic gains from merger. Chapter I looks at the nature and types of mergers, what motivates merger activity, and the possible (or potential) consequences of mergers. Chapter 2 concentrates on the impact of mergers on security markets, i.e. the effect on share prices and returns. The evidence is reviewed to discover if, on average, mergers generate gains to shareholders, when these gains occur, and how they are distributed. Chapter 3 investigates whether or not mergers do in fact generate economic gains and greater profitability. This is done by reviewing the evidence on the ex post performance of merged firms - are they in fact more efficient, more profitable? Finally Chapter 4 summarises the nature of the (apparent) conflict between the findings of Chapters 2 and 3, and asks whether the conflict has been resolved in the literature.
- Advisor / supervisor
- Capstaff, John
- Resource Type
- DOI
Relations
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