Cross-border M&As are used by companies as a ‘fast track strategy’ for international market expansion as it provides ….
However cross-border, M&As frequently erode rather than enhance stakeholder value. By identifying and examining factors that influence the performance of cross-border M&As, it is possible to understand why certain factors might affect performance negatively and as such, it is possible to provide solutions to avoid the erosion of stakeholder values.
According to some researchers (Seth et al., 2000), management hubris is a cause of failure in cross-border acquisitions. Management hubris occurs when senior managers acquire a firm with the belief that they can succeed where others tend to have failed (Hopkins, 2008). Although management hubris can be a cause for value erosion, considering it is very difficult to measure and identify the causes of management hubris, factors that are easier to measure should be explored given that it is easier to provide recommendations on enhancing stakeholder value for such factors.
A survey conducted by Shrivastava (1986) identified that integration problems resulted in one-third of all acquisition failures. Another factor to consider is that national cultural distance between firms makes cross-border acquisitions much more complicated than domestic acquisitions. Furthermore, the pre-acquisition phase of cross-border M&As is much tougher and could cause issues in particular circumstances where the acquirer lacks knowledge of the new country. As such, it is necessary to explore how national cultural distance, integration issues and the pre-acquisition phase influence the firm’s value.
National Cultural Distance and Integration
During cross-border acquisitions, it has been argued tha...
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...rs most likely will manage the target after the acquisition and as such, trust is crucial for a successful integration.
In addition, there is some evidence that related cross-border acquisitions with certain characteristics do add value. An intriguing study, based on a sample of 503 high tech cross-border acquisitions, identified that if a deal had certain characteristics it was possible to create value (Benou, Gleason & Madura, 2007). Acquiring firms were able to achieve “positive valuation results when the target firm had high visibility as a result of media coverage and was approved by a top investment bank” (Hopkins, 2008: 5). As such, to further increase the success in enhancing stakeholder value, the acquirer needs to appropriately market its deal to the public and investment community to gain investor confidence that will provide positive results.
Conclusion
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agreement with many South American countries, and is looking to implement a currency union called the “gaucho” (Viale). Data Section Gathered from the CIA world fact book I created this table to get a simple comparison of neighboring countries to Chile. Analysis MERCOSUR economies are driven by agriculture and exports (Viale). Brazil, having the strongest economy, would be the anchor country if there were any economic shocks (Viale). According to the CIA World Fact book, Chile is in advanced stages of demographic
business areas. S/F/36. IPO valuation and analysis This work presents classical analysis of the Initial Public Offering (IPO). First of all, the general financial position of the company and the quality of management are scrutinized. This is an important step in the analysis as it allows approaching the valuation step with all necessary adjustments made beforehand. Then the valuation process itself is conducted. The author uses post-IPO cash-flow analysis in order to allow for substantial reduction
Symbolic Interactionism In the field of sociology, sociologists use many different theories to base their ideas and observations on; however, the three major theories that are used are symbolic interactionism, functional analysis, and conflict theory. It is these three theories that will be the focus of this paper. To begin with, we will start with symbolic interactionism. Charles Horton Cooley and George Herbert Mead developed symbolic interactionism. In order to understand what this theory is
Management Perspective vii. Summary viii. Bibliography Executive Summary This paper is a report on cross-cultural management, with the issues related to cross-cultural management being discussed in the paper. Additionally, the report has produced the future way of cross-cultural management, including how it can be improved in offices relying much on this strategic approach. Diversity of Cross-Cultural Management Introduction In the beginning of globalization, organizations have started redefining
descriptive analysis of the state’s power, state facilitation and state exploitation all help Bravo in making meaningful arguments in favor of her claim. While many analysts concede that the state has some degree of blame in the fight against illegal and forceful migration of people across borders, few have considered the issue along the dynamics of legal and economic implications with regard to the state’s contribution. Joarder & Miller (2013: 1335) give a short sneak view of the scenario of cross-border
topic of mergers and acquisitions has been increasingly investigated in the literature in the last two decades (Appelbaum et al., 2007) in response to the rise in M&A activities as well as the increasing complexity of such transactions themselves(Gaughan, 2002). With the purpose of setting an M&A context for the thesis topic, we will explore M&A activities in terms of its definition and classification, motivations, post-merger integration. 1.1 The connotation of mergers and acquisitions. Mergers and
to the patients. Data must be accessible to all the associated medical facilities for MF... ... middle of paper ... ... individual length of stay estimations and shared resources. Retrieved from http://www.ncbi.nlm.nih.gov/pubmed/10144897 Tracy, M., Jansen, W., Scarfone, K., & Winograd, T. (2007, 09 30). Guidelines on Securing Public Web Servers. Retrieved from http://csrc.nist.gov/publications/nistpubs/800-44-ver2/SP800-44v2.pdf Transaction Age. (2012, 10 12). Reduce risks to your eCommerce
Introduction to Marks and Spencer British retailer Marks and Spencer (M&S) is a private limited company, their main aim is of a commercial nature. It is one of the most iconic and widely recognised chain stores in the UK. They have 520 stores located throughout the UK and 240 stores worldwide. It is the largest clothing retailer in the country. (Source: M&S website) 2.1 Key environmental factors impacting on M&S This part of the report will highlight the problems within the external
to enhance the customer’s in-store or online shopping; travel, and banking experiences by providing them with utmost convenience in payments and fund transfers. In addition, mobile money solutions have helped the mobile users in send and receive cross-border remittances, make bill payments, send and receive money over their mobile devices. Mobile Payment in Mauritius In Mauritius, the mobile payment service was launched in 2012 by Mauritius Telecom in collaboration with the State Bank of Mauritius
Another adva... ... middle of paper ... ...all, R. (2006). International Financial Reporting Standards (IFRS): Pros and Cons for Investors. Accounting and Business Research. Richard G. Schroeder，Myrtle W. Clark，Jack M. Cathey (2011). Financial Accounting Theory and Analysis: Text and Cases (10th ed.). UK: John Wiley and Sons. Yi Lin (Elaine) Chua, Chee Seng Cheong, and Graeme Gould (2012). The Impact of Mandatory IFRS Adoption on Accounting Quality: Evidence from Australia. Journal of International
The paper will also argue that the policies imposed by Mikhail Gorbachev finalized the destruction of the SU and led to its collapse (Coldwar.org, 2015). These reasons will be reflected using a comparative analysis of the fall of Communism in three different countries: Czechoslovakia, Poland and the German Democratic republic. These countries were chosen as there were different aspects contributing to the fall in each of them as well as they greatly differ
use, of violence by a group or individual based and operating entire... ... middle of paper ... ...linary approach to the subject along with transportation security and protection of infrastructure and border security. The content of the blog has been useful in the development and analysis of the policy for the security and countering terrorism activities. Building Resilience Against Terrorism: Canada's Counter-terrorism Strategy. Retrieved from http://www.publicsafety.gc.ca/cnt/rsrcs/pblctns/rslnc-gnst-trrrsm/index-eng
in recent decades. There is also intereste in whether the impact of the rapid increase has a negative influence on the economy and contributes negatively to our fiscal situation. Pia M. Orrenius,Assistant Vice President and Senior Economist of the Federal Reserve Bank of Dallas states in The Journal of Policy Analysis and Management, “The undocumented population rose from a few hundred thousand, primarily in agricultural workers, in the late 1960s to two to four million, mainly living in urban areas
We are now living in a borderless world where the impact of physical borders has been reduced and where interactions among different nations have become more open and less restrictive. It is a fact that the hospitality industry has not been spared by the impact of globalization either. In fact, for the most part, the hospitality industry has benefitted much from this age of globalization. The restrictions which physical borders and distance has posed in the past are no longer a significant barrier