Merger and Acquisition
RESEARCH PROPOSAL
TOPIC:
AN INVESTIGATION ON THE IMPACT OF FULL ACQUISITION IN EUROPE, ASIA AND AFRICA IN THE LAST DACADE ON THE ACQUIRING AND TARGET COMPANIES
INTRODUCTION
While it is understood through several researches that targets companies’ shareholders realize stock market gains with acquisition announcement, a significant number of studies have found that corporate acquisition generates negative returns for the shareholders of the acquiring company. Baines, (1978), Firth, (1980) Harris, (1989), Limmack (1991), Ellot, (1993), Limmack, (1996).
This research proposal will undertake the empirical investigation on the effect of full acquisition of the share capital of Targets companies in Europe, Asia and Africa in the last decade. Worthy of note is the fact that there are limited evidences and research on full acquisition of the entire share capital of the target companies. This research will assess the value created (if any) to the Acquiring firms and Target Firms after the acquisition in several industries that aligned with the sample size.
IMPORTANCE OF RESEARCH
This research is important in filling the gap created by previous studies because most studies focuses on partial acquisition or mergers and there are limited researches on the effect of full acquisition to both the Acquirer and Targets.
It is also important because the global interconnectedness of the economies of the world and global macroeconomic imbalance has precipitated the increasing occurrence in mergers and acquisitions. With the emergence of global powers like China and Russia, there would be increasing cases of full acquisition in the near future. Therefore a detailed study of the effect of full acquisition to targets and acquirers will further enhances the depth of due diligence that need to be carried out before the acquisition.
This research will also add to the past literature reviews in two ways. Firstly, it will widens the regional scope of the literature
TOPIC:
AN INVESTIGATION ON THE IMPACT OF FULL ACQUISITION IN EUROPE, ASIA AND AFRICA IN THE LAST DACADE ON THE ACQUIRING AND TARGET COMPANIES
INTRODUCTION
While it is understood through several researches that targets companies’ shareholders realize stock market gains with acquisition announcement, a significant number of studies have found that corporate acquisition generates negative returns for the shareholders of the acquiring company. Baines, (1978), Firth, (1980) Harris, (1989), Limmack (1991), Ellot, (1993), Limmack, (1996).
This research proposal will undertake the empirical investigation on the effect of full acquisition of the share capital of Targets companies in Europe, Asia and Africa in the last decade. Worthy of note is the fact that there are limited evidences and research on full acquisition of the entire share capital of the target companies. This research will assess the value created (if any) to the Acquiring firms and Target Firms after the acquisition in several industries that aligned with the sample size.
IMPORTANCE OF RESEARCH
This research is important in filling the gap created by previous studies because most studies focuses on partial acquisition or mergers and there are limited researches on the effect of full acquisition to both the Acquirer and Targets.
It is also important because the global interconnectedness of the economies of the world and global macroeconomic imbalance has precipitated the increasing occurrence in mergers and acquisitions. With the emergence of global powers like China and Russia, there would be increasing cases of full acquisition in the near future. Therefore a detailed study of the effect of full acquisition to targets and acquirers will further enhances the depth of due diligence that need to be carried out before the acquisition.
This research will also add to the past literature reviews in two ways. Firstly, it will widens the regional scope of the literature
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