M&A in the Construction Industry -Wealth Effects of Diversification into Real Estate Life Cycle Related Services

Since the late 1990s, the construction industry has undergone a change in business model, as contractors vertically expand their operations to other parts of the real estate life cycle. The question arises on whether construction companies have superior abilities as real estate service providers. We have examined the value implications of 106 large merger and acquisition (M&A) transactions in the construction industry worldwide from 1986 to 2006. We inquire if a vertical expansion of the construction value chain in the real estate life cycle through M&A leads to the creation of shareholder value. We find out that this is not the case. M&A success is mainly determined by industry-specific size effects and common agency conflicts.Construction industry; Cross-border acquisitions; Bidder gains; Global diversification

Kontrolldefizite bei den Kapitalbeteiligungsgesellschaften der Sparkassen

In den letzten Jahren haben öffentlich-rechtliche Kreditinstitute zunehmend Kapitalbeteiligungsgesellschaften gegründet. Wie sind diese unter Corporate Governance Gesichtspunkten zu beurteilen? Gibt es Kontrolldefizite bei den Beteiligungsgesellschaften? Können dort anreizkompatible Überwachungsinstrumente zum Einsatz kommen

Consolidation and Market Power of Energy Utilities - The case of US-American and German Utility Takeovers

Between 1990 and 2002 a wave of takeovers was observed in the North American and European energy utilities market. We analyze the impact of these takeovers on market power, studying 70 takeovers of US-American and 69 takeovers of German energy utilities by applying event study methodology. Stock price reactions of acquiring and target firms as well as of their competitors are used as an indicator for market power. While we do not find any significant results pointing in this direction for transactions in the US, our findings clearly indicate that the potential to increase market power is indeed an important motive for takeovers within the German energy utilities market.acquisitions, energy utilities, market power, oligopoly, regulation

ESG on the Chain: Unveiling the Impact of Different Blockchain Use Cases on Short-Term Stock Performance

We examine stock market reactions to different corporate blockchain use cases, particularly those related to environmental, social, and governance (ESG) issues. The study utilizes the event study methodology and analyzes an international dataset including 679 announcements from 291 firms worldwide. The findings indicate significant positive shareholder reactions to announcements related to traceability-, finance- and trading-, as well as ESG-related blockchain initiatives. In fact, ESG-related announcements generate superior market reactions compared to non-ESG-related news. These results contribute to the understanding of factors influencing shareholder value in the context of corporate blockchain initiatives and emphasize the substantial impact of ESG-related blockchain use cases on stock performance

Kontrolldefizite bei den Kapitalbeteiligungsgesellschaften der Sparkassen

In den letzten Jahren haben öffentlich-rechtliche Kreditinstitute zunehmend Kapitalbeteiligungsgesellschaften gegründet. Wie sind diese unter Corporate Governance Gesichtspunkten zu beurteilen? Gibt es Kontrolldefizite bei den Beteiligungsgesellschaften? Können dort anreizkompatible Überwachungsinstrumente zum Einsatz kommen? --

Die Kaufempfehlungen des "Effecten-Spiegel": Eine empirische Untersuchung im Lichte der Effizienzthese des Kapitalmarktes

Der "Effecten-Spiegel" ist mit einer wöchentlichen Auflage von über 100.000 Exemplaren der größte europäische Börsendienst. In jeder Ausgabe erscheint auf Seite 8 die Anlagekolumne "Aktien im Blickpunkt: Börsenfavoriten". Diese Kolumne steht im Mittelpunkt der Untersuchung. Es wird überprüft, inwieweit die Veröffentlichung eine meßbare Informationswirkung besitzt und effizient vom Markt verarbeitet wird. Darüberhinaus wird die kurzfristige Performance der Kaufempfehlungen dahingehend analysiert, ob es einem Anleger möglich, auf ihrer Basis systematisch Überrenditen zu erzielen. Die Untersuchung zeigt, daß für die Segmente "Sehr kleine Gesellschaften" und "Kleine Gesellschaften" Informationseffizienz vorliegt. Für diese Segemente könnte eine Überrendite in der Zeit vor der Veröffentlichung erzielt werden. Danach konnten keine Überrenditen beobachtet werden

Banking market consolidation in Asia:Evidence from acquirers, targets, and rivals

We analyze the financial sector consolidation in Asia by using a comprehensive sample of bank M&As from 1995 to 2021. Our results show that M&A announcements by Asian domestic acquirers are associated with significant positive stock price returns to both acquirers and their rivals. In contrast, cross-border acquirers and their rivals experience negative but insignificant returns, while targets and their rivals record gains, regardless whether it is a domestic or cross-border transaction. Further analyses reveal that domestic acquirers obtaining larger relative increases in their market share benefit the most, indicating that market power considerations are the primary driver behind acquirers' positive returns. For cross-border acquirers, neither cultural differences nor regulatory arbitrage considerations can explain return patterns surrounding M&A announcements

Mergers and Acquisitions in the Software Industry Research - Results in the Area of Success Determinants

This paper analyzes approaches investigating success drivers of mergers and acquisitions (M&A) in the software industry. The literature review covers a classification of research papers in the generic and software industry specific M&A research discipline. The results accentuate that the impact of success factors depends on the research context and that many factors have not been examined so far with respect to the software industry. Building on these insights, the resulting areas for research are pointed out. The investigation of software industry specific factors, in particular, promises to contribute to the analysis of variance in M&A performance

Returns On Large Stock Price Declines And Increases In The South African Stock Market: A Note On Market Efficiency

This study tests for underreaction and overreaction in the South African stock market by examining abnormal returns on the stocks included in the FTSE Group Johannesburg Stock Exchange Top 40 index following large price rises and drops. The results of our empirical investigation suggest that large price increases and declines are likely to be followed by positive market returns. In addition, for the post-2008 time period the risk of these stocks increases significantly for up to two years following the original event. Therefore, the results lend further support to the Uncertain Information Hypothesis