| Autor: Agnieszka Perepeczo | 115 |
Strony: 113-133
pełen tekst
ASSESSMENT OF FINANCIAL EFFECTS OF MERGERS AND ACQUISITIONS
Summary
The paper provides a summary of the PhD dissertation which consists of the introduction, five chapters and conclusions. In the first chapter, the background of mergers and acquisitions is presented: definitions, classifications, kinds of financial effects and market description. Moreover this chapter describes legal and accounting regulations, motives, financing sources, valuation and post-merger integration. Chapter two reviews foreign literature concerning assessment methods of mergers and acquisitions. Results of several studies carried out in the developed markets are presented in the next two chapters, separately for market and operating performance of mergers and acquisitions. The findings are similar. The short-run market abnormal return is positive for acquired firms and negative for the acquiring ones. The long-run market performance following mergers is negative and the following tender offer is non-negative or even positive. As far as operating performance is concerned, the results presented are ambiguous. Generally, the cash flow return is positive for combined firms and higher in comparison to the pre-merger period but the net profit return is negative. The last chapter of PhD dissertation presents the results of the author’s research study into acquisition announcements on the Polish capital market. The evidence leads to the conclusion that a positive reaction of investors to acquisition announcement on the Polish market is similar to the reaction of investors on developed markets, and results in a positive abnormal return for shareholders of acquired firms. In case of the operating performance a general conclusion of the results achieved can be formulated as follows: the operating performance of merged firms is worse after the transaction has been completed.
pełen tekstASSESSMENT OF FINANCIAL EFFECTS OF MERGERS AND ACQUISITIONS
Summary
The paper provides a summary of the PhD dissertation which consists of the introduction, five chapters and conclusions. In the first chapter, the background of mergers and acquisitions is presented: definitions, classifications, kinds of financial effects and market description. Moreover this chapter describes legal and accounting regulations, motives, financing sources, valuation and post-merger integration. Chapter two reviews foreign literature concerning assessment methods of mergers and acquisitions. Results of several studies carried out in the developed markets are presented in the next two chapters, separately for market and operating performance of mergers and acquisitions. The findings are similar. The short-run market abnormal return is positive for acquired firms and negative for the acquiring ones. The long-run market performance following mergers is negative and the following tender offer is non-negative or even positive. As far as operating performance is concerned, the results presented are ambiguous. Generally, the cash flow return is positive for combined firms and higher in comparison to the pre-merger period but the net profit return is negative. The last chapter of PhD dissertation presents the results of the author’s research study into acquisition announcements on the Polish capital market. The evidence leads to the conclusion that a positive reaction of investors to acquisition announcement on the Polish market is similar to the reaction of investors on developed markets, and results in a positive abnormal return for shareholders of acquired firms. In case of the operating performance a general conclusion of the results achieved can be formulated as follows: the operating performance of merged firms is worse after the transaction has been completed.