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2006 | OriginalPaper | Buchkapitel

27. Merger and acquisition: Definitions, motives, and market responses

verfasst von : Jenifer Piesse, Cheng-Few Lee, Lin Lin, Hsien-Chang Kuo

Erschienen in: Encyclopedia of Finance

Verlag: Springer US

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Abstract

Along with globalization, merger and acquisition has become not only a method of external corporate growth, but also a strategic choice of the firm enabling further strengthening of core competence. The megamergers in the last decades have also brought about structural changes in some industries, and attracted international attention. A number of motivations for merger and acquisition are proposed in the literature, mostly drawn directly from finance theory but with some inconsistencies. Interestingly, distressed firms are found to be predators and the market reaction to these is not always predictable. Several financing options are associated with takeover activity and are generally specific to the acquiring firm. Given the interest in the academic and business literature, merger and acquisition will continue to be an interesting but challenging strategy in the search for expanding corporate influence and profitability.

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Vorheriges Kapitel Experimental economics and the theory of finance
Nächstes Kapitel Multistage compound real options: Theory and application
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Metadaten
Titel
Merger and acquisition: Definitions, motives, and market responses
verfasst von
Jenifer Piesse
Cheng-Few Lee
Lin Lin
Hsien-Chang Kuo
Copyright-Jahr
2006
Verlag
Springer US
Buch
Encyclopedia of Finance

Print ISBN: 978-0-387-26284-0

Electronic ISBN: 978-0-387-26336-6

Copyright-Jahr: 2006

DOI
https://doi.org/10.1007/978-0-387-26336-6_53