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Conceptual approaches on value creation in mergers and acquisition

Author

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  • Claudiu Oprescu

    (University of Craiova, Romania)

Abstract

Due to increased competition and increased globalization the economic environment has changed in recent years and in light of this, the challenges a company faces have become larger and more demanding. Over time, a wide range of empirical studies have been performed in order to determine if M&A transactions create value. This paper is to give a perspective of some of the studies performed and to evaluate the effects of mergers and acquisitions, as well as illustrating the evidence of value creation.

Suggested Citation

  • Claudiu Oprescu, 2015. "Conceptual approaches on value creation in mergers and acquisition," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 15(1), pages 231-236.
    • Handle: RePEc:pet:annals:v:15:y:2015:i:1:p:231-236
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    References listed on IDEAS

    as
    1. Moeller, Sara B. & Schlingemann, Frederik P., 2005. "Global diversification and bidder gains: A comparison between cross-border and domestic acquisitions," Journal of Banking & Finance, Elsevier, vol. 29(3), pages 533-564, March.
    2. Erik Devos & Palani-Rajan Kadapakkam & Srinivasan Krishnamurthy, 2009. "How Do Mergers Create Value? A Comparison of Taxes, Market Power, and Efficiency Improvements as Explanations for Synergies," The Review of Financial Studies, Society for Financial Studies, vol. 22(3), pages 1179-1211, March.
    3. Paolo Fulghieri & Laurie Simon Hodrick, 2006. "Synergies and Internal Agency Conflicts: The Double‐Edged Sword of Mergers," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 15(3), pages 549-576, September.
    4. Mandelker, Gershon, 1974. "Risk and return: The case of merging firms," Journal of Financial Economics, Elsevier, vol. 1(4), pages 303-335, December.
    5. Bradley, Michael & Desai, Anand & Kim, E. Han, 1988. "Synergistic gains from corporate acquisitions and their division between the stockholders of target and acquiring firms," Journal of Financial Economics, Elsevier, vol. 21(1), pages 3-40, May.
    6. Mark L. Sirower & Stephen F. O'Byrne, 1998. "The Measurement Of Post‐Acquisition Performance: Toward A Value‐Based Benchmarking Methodology," Journal of Applied Corporate Finance, Morgan Stanley, vol. 11(2), pages 107-121, June.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    value creation; mergers and acquisitions; synergy; value;
    All these keywords.

    JEL classification:

    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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