NBER WORKING PAPER SERIES DO SHAREHOLDERS OF ACQUIRING FIRMS GAIN FROM ACQUISITIONS? Sara B. Moeller Frederik P. Schlingemann René M. Stulz Working Paper 9523 http://www.nber.org/papers/w9523 NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts Avenue Cambridge‚ MA 02138 February 2003 We are grateful to Harry DeAngelo and Ralph Walkling for useful comments. The views expressed herein are those of the author and not necessarily those of the National Bureau of Economic Research. ©2003 by Sara
Premium Cash flow Investment Stock market
maximization of shareholder value.” (Krishnan‚ 2009) One often stumbles upon such statements while reading about shareholders value or maximization of shareholders wealth. This is also a typical answer to questions such as “what is the best and primary objective of a company in a competitive market”. But should it be the only and most important objective in a firm? Must it be fulfilled first and foremost‚ or is there the possibility of generating more wealth for company‚ shareholders and stakeholders
Premium Management Corporate finance Business ethics
Strategic Stakeholder Management A stakeholder is any individual‚ group‚ or organization that has an interest or concern or may be impacted as a result of an organization’s activities‚ objectives‚ policies‚ or products. Strong relationships between an organization and its stakeholders are critical to a company’s success. To effectively manage stakeholder relationships‚ an organization must understand the nature and composition of its stakeholder community and how stakeholder power and interest levels
Premium Management Strategic management Stakeholder
Summary The omnipotent view of management says that managers are directly responsible for the success or failure of an organization. This is a dominate view in management theory and society in general. The symbolic view of management takes the view much of an organization’s success or failure is due to external forces outside the manager’ control. The view of managers as omnipotent is consistent with the stereotypical picture of the take-charge executive who can overcome any obstacle in carrying
Premium Management Organization Organizational culture
Stakeholder Analysis Shmeka L. Williams MHA601 August 13‚ 2013 Earl Greenia There are far too many Americans uninsured for adequate healthcare. Contrary to what some people believe; it is not just the unemployed or impoverished who have trouble getting adequate healthcare for themselves and their families. In fact‚ according to the Center for Disease Control (CDC)‚ more than “45 million Americans did not have health
Premium Health care Health insurance Medicine
Finance & Accounting‚ 29(7) & (8)‚ Sept./Oct. 2002‚ 0306-686X Dividend Imputation and Shareholder Wealth: The Case of New Zealand Andrew Prevost‚ Ramesh P. Rao and John D. Wagster* 1. INTRODUCTION Effective from April 1‚ 1988‚ New Zealand changed its existing two-tier `classical ’ dividend taxation regime to full dividend imputation. Corporate income is now only taxed once rather than at both the corporate and shareholder level. Concurrently‚ the New Zealand tax code was revised‚ reducing the top personal
Free Tax Taxation Corporate tax
Do Mergers and Acquisitions Create Shareholder Wealth In The Pharmaceutical Industry? Mahmud Hassan‚ Dilip K. Patro‚ Howard Tuckman and Xiaoli Wang* Purpose: This paper analyzes mergers and acquisitions (M&A) focusing on the U.S. pharmaceutical industry in the period 1981-2004. This industry is chosen because it is global‚ engages intensively in M&A which it uses to both complement and substitute for early stage research‚ and because the potential abnormal returns to blockbuster drugs are
Premium Investment Stock Stock market
Reading 3.1 : Global Dialogue with Capital Market Stakeholders The rules‚ processes and institutions that govern the global capital markets are struggling to keep up with the constant innovation of the 21st century. Today’s investors demand financial reporting they can trust and businesses are trying to find the right way to express this information while regulators are seeking to promote investor confidence and market integrity. This is an article written by the worlds 6 largest audit firm
Premium International Financial Reporting Standards Audit Financial statements
M1 – Explain the points of view of different stakeholders seeking to influence the aims and objectives of two contrasting organisations The stakeholders in a business can be a person‚ group or organisation that has an influence in an organisation. All stakeholders are not the same‚ they all have their differences. Customers The customers are a very important stakeholder of Sainsbury’s because the aims mostly involve them‚ Sainsbury’s want to ‘deliver an ever-improving quality shopping experience
Premium Management Employment Price
position of shareholders as the owners of the company‚ satisfying shareholder claims typically receives the greatest attention in many corporate mission statements. However‚ should managers only pursue the interests of shareholders‚ while ignoring the claims of other stakeholders. Discuss. No a manager should not only pursue the interests of shareholders because it is important for managers to both pursue the interests of shareholders and all other stakeholders. Although shareholders play a vital
Premium Management Corporation Social responsibility