Maeseneire September 2011 ABSTRACT This thesis empirically investigates the antecedents of abnormal return and operating performance improvement through mergers and acquisitions in Europe‚ the United Kingdom and North America. The study is an empirical study of M&As of listed acquirers and targets announced between 1985 and 1999. The transactions are analysed using event studies for abnormal return on the short and long terms (216 transactions) and operating performance (135 transactions). The event
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make; carColor = color; carLicense = license; } //This prints the information of the car. public String toString() { String carInfo; carInfo = "Car Make: "+carMake+"\nCar color: "+carColor+"\nLicense Number: "+carLicense+"\n"; return carInfo; } } ParkingMeter.java //Object representation of a parking meter. public class ParkingMeter { private int minutesPurchased; private int minutesPassed; private int minutesPassedExp; //Constructor for Parking Meter with
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market. As a result‚ EMH negates the use of technical analysis as a means to generate investment returns. With respect to fundamental analysis‚ the EMH also states that all publicly available information is reflected in security prices and as such‚ abnormal returns cannot be achievable through the use of this information. This negates the use of fundamental analysis as a means to generate investment returns. EMH and the Portfolio Management Process The portfolio management process begins with an
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CEO is to maximize shareholder value by accepting any project whose expected return on investment is greater than the cost of capital. Therefore‚ the main factors that Ameritrade management should consider are the expected return on investment for the project‚ and how this compares to the project’s cost of capital. Other factors that should also be considered include: how market swings will affect the expected return on investment‚ the project’s payback period (the project will require massive
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Pfizer Inc and Sanofi S.A. Analysis 2012 5/14/2012 Introduction This report pertains to the analysis of the companies Pfizer Inc and Sanofi S.A. Pfizer Inc is a major player in the global pharmaceutical industry and is driven by the vision of improving the life and health of the consumers through innovative discoveries and solutions. The company is diversified geographically and the global healthcare portfolio comprises of human as well as animal biologic & vaccines and small molecule
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Diversification and Returns Firms have numerous reasons to diversify internationally.134 International diversification is a strategy through which a firm expands the sales of its goods or services across the borders of global regions and countries into different geographic locations or markets. Because of its potential advantages‚ international diversification should be related positively to firms’ returns. Research has shown that‚ as international diversification increases‚ firms’ returns decrease initially
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October 2008 Available online 29 May 2009 JEL classification: G19 D89 M40 Keywords: Earnings management R2 Crashes Transparency abstract We investigate the relation between the transparency of financial statements and the distribution of stock returns. Using earnings management as a measure of opacity‚ we find that opacity is associated with higher R2s‚ indicating less revelation of firm-specific information. Moreover‚ opaque firms are more prone to stock price crashes‚ consistent with the prediction
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etc.)‚ value is created by how you finance a project. False. True. Question 2 (5 points) The return on equity is equal to the return on assets of a project/firm. Never true. Sometimes true. Always true. Question 3 (10 points) Suppose the expected returns on equity of two firms‚ Macrosoft and Microsoft‚ that operate in the same industry are 10.50% and 12.60%‚ respectively. What is the return on assets in this business if Macrosoft has no debt? (Enter the answer with no more nor less than
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FINANCE Question: 1. (a) Frodo Baggins has RM1‚500 to invest. His investment counselor suggests an investment that pays no stated interest but will return RM2‚000 at the end of 3 years. (i) (ii) What annual rate of return will Frodo earn with this investment? Frodo is considering another investment‚ of equal risk‚ that earns an annual return of 8%. Which investment should he make and why? (b) Samwise Gamgee was seriously injured in an industrial accident. He sued the responsible parties
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Summary The issue of corporation governance has long been a heated topic among business communities‚ especially the relationship between the level of CEO’s compensation and firms’ performance. Before the enactment of the Sarbanes-Oxley legislation (SOX thereafter)‚ which regulates the unethical wrongdoings‚ CEOs enjoyed unreasonable high remuneration despite of their mediocre performance. The overall focus of this report is to identify the relationship between CEO’s compensation and performance
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