Unlocking the mergers and acquisitions puzzle in the United Arab Emirates: investigating the impact of corporate leverage on target selection and payment methods

Following a long stream of literature on the drivers of Mergers and Acquisition (M&A) activities, this study examines the effect of corporate leverage on several decisions of M&A deals in the context of the United Arab Emirates (UAE). Using M&A data from the Thomson One database for the period between 2005 and 2022, we find that corporate leverage significantly influences the type of M&A target. This study further adds to the prior literature on the contradictory behaviours of high- and low-leverage firms by examining whether acquisition decisions differ amongst them in M&A deals in the UAE context. Results indicate that high (low) leverage firms are less (more) likely to acquire private targets and more (less) inclined to acquire a target from a different (same) industry. Furthermore, our results show that the relationship between the method of payment used in M&A deals and corporate leverage is insignificant. We control for endogeneity using Heckman’s two-stage method. In brief, this paper extends the literature with conclusive evidence that considerations of capital structure can significantly anticipate and explain firms’ behaviour toward M&A choices. The implication of findings may include a call to reform some aspects of the Competition Law in the UAE by requiring private firms to enhance their disclosure practices similar to their public counterparts

Choice of the Sampling Interval for the Identification of Continuous-time Systems from Samples of Input/output Data

Conclusions An indirect method of parameter estimation for continuous-time systems from sampled input/output data has been described. Firstly, the ARMA model of the system is identified from the sampled data. Then the order of the reduced model is determined by the dispersion analysis. Finally, the continuous model is obtained by matching the frequency responses of the discrete-time model and the continuous-time model. The proposed estimation procedures have been applied to a power system stabilizer, and satisfactory results are obtained. Acknowledgment This work was supported by the Taipower Company. Reference

Unified weekly peak load forecasting for fast growing power system

Forecasting demand and energy for power systems in developing countries is difficult. The difficulty stems from shortage of appropriate data and is also due to the high growth rate of both electric demand and load related variables. The paper presents a unified forecasting methodology based on the decomposition of weekly loads into several components for a fast-growing power system. The data have been treated in a different way from the conventional one to account for the dynamic load behavior

Do acquirers see through the numbers? Earnings management by UK takeover targets

Do acquirers see through the numbers? Earnings management by UK takeover target

Second Order Eigensensitivities of Singularly Perturbed Systems

In this paper, second order eigenvalue sensitivities are derived with respect to the singular perturbation parameter whose variation changes the reduced system order. These sensitivities are used to identity boundaries between fast and slow subsystems. This is applicable to systems that possess two-time scale property. Accurate estimates for the system modes without solving the eigenproblem of the whole system are obtained

Strategic investment decision-making: A theoretical perspective

There is a stream of research that has introduced strategic investment decision-making (SIDM) through case studies and organisation-based fieldwork. However, a systematic theorisation around SIDM processes and practices still under-presented in the literature. This research aims to show how strong structuration theory (SST) could be used as an appropriate theoretical lens to explore how SIDM studies are theorised and conducted. Through employing the parameters and the concepts of SST within the SIDM context, we found that SID is a judgemental decision that is constructed by various influences. SIDs are not isolated from the social, political, and economic aspects. Subjective judgements and the decision-makers’ intuition are crucial throughout the process of SIDM. Therefore, SIDs cannot be abstracted as an objective decision-based on applying investment appraisal technical methods. The theoretical lens presented in this paper will enable researchers to drill down into the ‘ontic’ level to empirically explore in-depth the complex interrelationships between various agents and structures which, arguably, fits the SID context. Furthermore, this paper will help scholars understand how SID is made from SST perspective and guide them to conduct future research to build on and also help executives to be guided by

Impact of Power System Stabilizer Installation on Steady State Stability Performance

The fast expansion of both transmission network and generation in the fast developing power system necessitates a continuous updating for its stability performance. One of the means to reinforce the steady state stability is by installing the power system stabilizer. This paper focuses on the impact of power system stabilizer on the performance of an existing power system. The choice of both location as well as the stabilizing signal is addressed. The normalized modes sensitivities combined with eigenvalue tracking guide the selection and tunning of the power system stabilizer parameters for acceptable stability region. The trade off between improvement in the interaction and rotor angle modes is emphasized. This investigation may assist utility decision makers in deciding to install or not such device