Mergers and Acquisitions and Corporate Performance in Japan


Book Description

This paper investigates how mergers and acquisitions affect corporate performance for three years after their implementation. The corporate performance of 162 mergers and acquisitions that took place in Japan from 2001 to 2003, is analyzed by using Wilcoxon singed-rank tests. We find that overall effects of mergers and acquisitions on corporate performance are statistically insignificant, compared to the corporate performance of other companies within the same industry with similar pre-acquisition performance. Regression analyses show that complete acquisitions, smaller size, and restructuring efforts may improve post-acquisition performance of acquiring companies.




International Business Mergers and Acquisitions in Japan


Book Description

This book is one of the very few published investigations of international business in a Japanese context, based on an up-to-date overview of the Japanese mergers and acquisitions (M&A) market in particular. The author explicates recent developments in Japanese business and shows how Japanese firms drastically change to reach out to become more globalized. The book can serve as a foundation in a teaching module for any Japan-related class in international business. Specifically, this publication reveals the inner workings of the Japanese business system. M&A activities covered here include those of foreign firms in Japan as well as Japanese firms investing domestically and in cross-border ventures. Illustrated by carefully chosen examples and supported by extensive data analyses, this book is highly recommended to readers who seek an in-depth understanding of the Japanese M&A market. The volume is enriched by case studies that explicitly illustrate the objectives of specific firms and how they successfully manage their M&A. The author brings to this work his 14 years of experience in Japan and has relied not only on English literature but also on original Japanese sources in creating this highly valuable contribution to the field.




Post-Merger Corporate Performance in Japan


Book Description

The issue of choice between specialization and diversification in corporate business activity has become the center of large body of corporate finance literature in recent years. U.S. empirical evidence on the effects of diversification after merger is mixed, suggesting that the diversification benefits of mergers change over time. This is the first paper to examine the long-term operating performance following mergers of manufacturing firms traded on the Tokyo Stock Exchange for the period from 1969 to 1992. Using a unique data set that includes the pre-merger performance of the target and acquirer firms, we find that the long-term operating performance following the mergers is positive but insignificant. However, the long-term performance is significantly greater following diversifying mergers, and there is a remarkable degree of consistency between the pre-merger and post-merger performance. Our results are consistent with the view by Hubbard and Palia (1999) who examine the mergers occurring in the U.S. during the 1960s, and find the positive abnormal returns in bidder firms of diversifying mergers. Finally, we show that rescue mergers involving distressed targets are not likely to lead to inferior long-term performance contrary to the notion that acquisitions of poorly performing firms are less likely to succeed. This is a contrast to the results of Clark and Ofek (1994) who examine a sample of 38 of acquisitions of distressed targets in the U.S. and report that the bidders are not successful in restructuring the target firms. Our findings support the notion that the benefits of merger will be greater when target firms is liquidity constrained prior to diversifying acquisitions.




Japanese Takeovers


Book Description

This is a reprint of a previously published work. It deals with japanese mergers and acquisitions which reached a zenith in the 1980s.




The Management of International Acquisitions


Book Description

The authors' research indicates that while considerable convergence is taking place on many dimensions of management practice, distinct national management styles still exist among acquiring companies.







Advances in Mergers and Acquisitions


Book Description

Mergers and acquisitions are a primary vehicle of growth for companies around the world. This book contains topics that range from strategy, to organizational integration, culture, leadership, human resource planning, and financial analysis.




The Value of Corporate Diversification


Book Description

The choice between specialization and diversification in corporate business activity has become the center of large body of corporate finance literature in recent years. U.S. empirical evidence on the effects of diversification after merger is mixed, suggesting that the diversification benefits of mergers change over time. This is the first paper to examine the long-term operating performance following mergers of manufacturing firms traded on the Tokyo Stock Exchange for the period from 1969 to 1992. Using a unique data set that includes the pre-merger performance of the target and acquirer firms, we find that the long-term operating performance following the mergers is positive but insignificant. However, the long-term performance is significantly greater following diversifying mergers, and there is a remarkable degree of consistency between the pre-merger and post-merger performance. Our results are consistent with the view by Hubbard and Palia (1999) who examine the mergers occurring in the U.S. during the 1960s, and find positive abnormal returns in bidder firms of diversifying mergers. Finally, we show that rescue mergers involving distressed targets are not likely to lead to inferior long-term performance contrary to the notion that acquisitions of poorly performing firms are less likely to succeed. This is a contrast to the results of Clark and Ofek (1994) who examine acquisitions of distressed targets in the U.S. and report that the bidders are not successful in restructuring the target firms.




Mergers, Acquisitions, and Corporate Restructurings


Book Description

The essential M&A primer, updated with the latest research and statistics Mergers, Acquisitions, and Corporate Restructurings provides a comprehensive look at the field's growth and development, and places M&As in realistic context amidst changing trends, legislation, and global perspectives. All-inclusive coverage merges expert discussion with extensive graphs, research, and case studies to show how M&As can be used successfully, how each form works, and how they are governed by the laws of major countries. Strategies and motives are carefully analyzed alongside legalities each step of the way, and specific techniques are dissected to provide deep insight into real-world operations. This new seventh edition has been revised to improve clarity and approachability, and features the latest research and data to provide the most accurate assessment of the current M&A landscape. Ancillary materials include PowerPoint slides, a sample syllabus, and a test bank to facilitate training and streamline comprehension. As the global economy slows, merger and acquisition activity is expected to increase. This book provides an M&A primer for business executives and financial managers seeking a deeper understanding of how corporate restructuring can work for their companies. Understand the many forms of M&As, and the laws that govern them Learn the offensive and defensive techniques used during hostile acquisitions Delve into the strategies and motives that inspire M&As Access the latest data, research, and case studies on private equity, ethics, corporate governance, and more From large megadeals to various forms of downsizing, a full range of restructuring practices are currently being used to revitalize and supercharge companies around the world. Mergers, Acquisitions, and Corporate Restructurings is an essential resource for executives needing to quickly get up to date to plan their own company's next moves.




Business Development, Merger And Crisis Management Of International Firms In Japan: Featuring Case Studies From Fortune 500 Companies


Book Description

Providing rare insight into the topic of Japanese management, this book looks at how Japanese companies changed after the economic recession of the 1990s and the decade-long restructuring process. With 12 case studies, this book investigates crisis management, strategy development, merger and globalization in a structured and descriptive manner. It aims to support students and decision-makers to learn more about strategic Japanese management and effective decision-making.