Browsing by Subject "yrityskaupat"

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  • Myller, Marko (2007)
    Bank of Finland. Financial market report 3
    The 'swallow or be swallowed' game between stock exchanges continues. The focus of attention has shifted to the Nordic countries, with the OMX Group getting its turn in the global integration of exchanges. This coincides with completion of the merger between parent companies of the London and Milan stock exchanges.
  • Francis, Bill; Hasan, Iftekhar; Sun, Xian; Waisman, Maya (2014)
    Bank of Finland Research Discussion Papers 17/2014
    Published in Journal of Corporate Finance, Volume 25, April 2014, Pages 202–215
    In the presence of high uncertainty and limited experience, can observing the actions of other acquiring predecessors help firms make better acquisition decisions? Using a sample of cross-border M&As conducted by US acquirers in developing countries, we document a positive and significant relationship between an acquirer's performance and its predecessors' acquisition activity. This relationship is especially pronounced in the prevalence of news events about the outcome of predecessors' acquisitions, when predecessors consist of US peers from the same industry and/or when targets are based in culturally distant countries. Our findings shed light on one channel through which information spillovers across industries and acquiring firms could be a key driver of value creation in developing market cross-border M&As.
  • Choi, Sungho; Francis, Bill B.; Hasan, Iftekhar (2010)
    Bank of Finland Research Discussion Papers 4/2010
    The impact of cross-border bank M&As on bank risk remains an open question. Though geographically diversifying bank M&As have the potential to reduce the risk of bank insolvency, they also have the potential to increase that risk due to the increase in risk-taking incentives for bank managers and stockholders following these transactions. This paper empirically investigates whether cross-border bank M&As increase or decrease the risk of acquiring banks as captured by changes in acquirers yield spreads. The paper also investigates how differences in the institutional environments between bidder and target countries affect changes in yield spreads following M&A announcements. The study finds that bondholders, in general, perceive cross-border bank M&As as risk-increasing activities, unlike domestic bank mergers. Specifically, on average, yield spreads increase by 4.13 basis points following the announcement of cross-border M&As. This study also finds that these yield spreads are significantly affected by the differences in investor-protection and deposit-insurance environments between the transacting countries. However, the study does not find that the regulatory and supervisory environment in the home countries of the transacting parties significantly affects the changes in yield spreads. The overall evidence suggests that regulators should judge the relative environment in both the home and the host countries in evaluating the associated risks of an active multinational financial institution and in setting the sufficiency of the banks reserve positions.
  • Francis, Bill B.; Hasan, Iftekhar; Sun, Xian (2012)
    Bank of Finland Research Discussion Papers 28/2012
    Ilmestynyt myös Journal of Economics and Business 2014 ; 73 ; May.
    Using a sample of U.S. mergers and acquisitions, this study evaluates how banking relationships influence acquirers choice of financial advisors. Specifically, it examines: i) acquirers previous relationships with advisors in various financial activities: M&A advisories, equity issuings and lending activities; ii) the optimism of analyst recommendations; and iii) how acquirers past satisfaction with their financial advisors determines the choice of financial advisors. Overall, the findings suggest that the influence of banking relationships on a firm s choice of financial institutions is limited in the area of M&A advisory business. The implications from the traditional relationship banking studies may not be suitable to explain how firms choose advisors, due to the wide variety of practices in investment banking activities. The evidence portrays that firms with M&A experience are more likely to switch financial advisors with poor deal outcomes. Firms without M&A experience, on the other hand, are more likely to choose their underwriters as financial advisors, especially when they provide overly optimistic analyst coverage prior to the transactions.
  • Francis, Bill B.; Hasan, Iftekhar; Sun, Xian (2006)
    Bank of Finland Research Discussion Papers 24/2006
    Julkaisun kansilehdellä nimi Xian Sun on muodossa Zian Sun. Published in Journal of Banking & Finance, Volume 32, Issue 8, August 2008, pp. 1522-1540.
    Using theories of internal capital markets, this paper examines the link between financial market integration and the value of global diversification.Based on a sample of 1,491 completed cross-border mergers and acquisitions (M&As) conducted by US acquirers during the 1990-2003 period, we find that, in general, US shareholders gain significant positive abnormal returns following the announcement of the merger/acquisition.Specifically, firms that acquire/merge with targets from countries with financially segmented markets experience significantly higher positive abnormal returns than those that acquire/merge with targets from countries with financially integrated capital markets.We find that the significantly higher positive returns are driven particularly by deals between firms from unrelated industries.These firms with higher announcement returns are also characterized by positive and significant post-merger operating performance.This finding is consistent with our event study results and suggests that the overall improvement in the merged firms' performance is likely due to the influx of internal capital from wholly integrated acquirers to segmented targets, firms that, on average are usually faced with higher capital constraints. Keywords: financial market integration, global diversification, internal capital markets, mergers, acquisitions JEL classification numbers: G15, G31, G34
  • Francis, Bill B.; Hasan, Iftekhar; Sun, Xian (2012)
    Bank of Finland Research Discussion Papers 31/2012
    Published in International Review of Financial Analysis, Volume 32, March 2014, Pages 143-158
    This paper examines the determinants of the choice of financial advisors and their impact on the announcement effects of US acquirers in cross-border M&As. Two hypotheses are tested: one pertains to the acquiring firms' home preference in selecting financial advisors, and the other relates to advisors' experience in target countries. Evidence supports the home preference hypothesis in the selection of advisors in cross-border M&As, particularly in all-cash paid transactions where acquirers take the entire risk of not realizing the expected synergy value. We also observe home preference among investors as acquirers that picked US advisors experience significantly higher positive abnormal returns in all-cash paid transactions than those without US advisors, even when the chosen US advisors do not have significant experience in the target country. Finally, home preference at the choice of financial advisor may be costly if US acquirers pass by more experienced because of home preference.
  • Vauhkonen, Jukka (2004)
    Suomen Pankki. Rahoitusmarkkinaraportti 4
    JPMorgan Chase ja Bank One fuusioituivat. Mitsubishi Tokyo Financial Group ja UFJ ilmoittivat aikeistaan fuusioitua vuonna 2005. Banco Santander Central Hispano osti Abbey Nationalin. Euroopassa pankkien fuusiot ja yritysostot ovat kuitenkin kaikkiaan vähentyneet huippuvuosista 1998-2000.
  • Molnár, József (2007)
    Bank of Finland Research Discussion Papers 17/2007
    This paper proposes and tests an explanation as to why rational managers seeking to maximize shareholder value can pursue value-decreasing mergers. It can be optimal to overpay for a target firm and decrease shareholder value if the loss is less than in an alternative where the merger is undertaken by a product market rival. This paper presents a model based on synergies, market power and competition for merger targets. Consistent with the model the empirical results obtained here show a strong correlation between the returns of acquiring firms and close rivals around merger events. Keywords: acquisitions, auction, event study, oligopoly, preemption JEL classification numbers: G34, G14, D43, D44, L13
  • Hasan, Iftekhar; Khalil, Fahad; Sun, Xian (2017)
    Bank of Finland Research Discussion Papers 17/2017
    We investigate the impacts of improved intellectual property rights (IPR) protection on cross-border M&A performance. Using multiple measures of IPR protection and based on generalized difference-in-differences estimates, we find that countries with better IPR protection attract significantly more hi-tech cross-border M&A activity, particularly in developing economies. Moreover, acquirers pay higher premiums for companies in countries with better IPR protection, and there is a significantly higher acquirer announcement effect associated with these hi-tech transactions.
  • Hasan, Iftekhar; Khalil, Fahad; Sun, Xian (2017)
    Quarterly Journal of Finance 3
    BoF DP 17/2017
    We investigate the impacts of improved intellectual property rights (IPR) protection on cross-border M&A performance. Using multiple measures of IPR protection and based on generalized difference-in-differences estimates, we find that countries with better IPR protection attract significantly more hi-tech cross-border M&A activity, particularly in developing economies. Moreover, acquirers pay higher premiums for companies in countries with better IPR protection, and there is a significantly higher acquirer announcement effect associated with these hi-tech transactions.
  • Chahine, Salim; Hasan, Iftekhar; Mazboudi, Mohamad (Wiley, 2018)
    International Journal of Auditing 3
    Using a sample of 664 merger and acquisition (M&A) transactions and office‐level audit data, this study investigates the role of auditors in M&A completion time. We find that having a common auditor for both acquirer and target firms in M&A transactions increases the completion time of such transactions because the exposure to higher litigation and reputational costs outweighs the information‐access advantage of common auditors. However, auditors' past experience in M&A transactions helps reduce completion time and costs. These results are robust to having Big N auditors at both ends as well as to various acquirer, target, and deal characteristics.
  • Myller, Marko (2007)
    Suomen Pankki. Rahoitusmarkkinaraportti 3
    Pörssien piirileikki teeman osta tai tule ostetuksi ympärillä jatkuu. Huomion keskipiste on tällä kertaa siirtynyt Pohjois-maiden suuntaan, kun OMX-ryhmä on vuorostaan päässyt estradille pörssien globaalissa integraatio-kehityksessä. Samaan aikaan Lontoon ja Milanon pörssien emo-yhtiöt yhdistyivät.
  • Vauhkonen, Jukka (2004)
    Bank of Finland. Financial market report 4
    JPMorgan Chase and Bank One merged. Mitsubishi Tokyo Financial Group and UFJ announced their intention to merge in 2005. Banco Santander Central Hispano acquired Abbey National. In Europe, banks' mergers and acquisitions have generally declined since the peak years of 1998-2000.