This study analyzes the changes in costs and prices from 1986 to 1994 for more than 3,500 U.S. short-term general hospitals, including 122 horizontal mergers. These mergers were generally financially beneficial to consumers, providing average price reductions of approximately 7 percent. Merger-related price reductions were considerably less in market areas with higher market concentration level...

One of the most conspicuous features of mergers is that they come in waves that are correlated with increases in share prices and price/earnings ratios. We use a natural way to discriminate between pure stock market influences on firm decisions and other influences by examining merger patterns for both listed and unlisted firms. If "real" changes in the economy drive merger waves, as some neocl...

The MetaFrame system migration project at WorldPharma, while driven by merger and acquisition, had faced complexities caused by both technical challenges and organizational issues in the climate of uncertainties. However, WorldPharma still insisted on instigating this post-merger system migration project. This project served to (1) consolidate the separated legacy MetaFrame systems from the thr...

Merger waves are an enduring mystery and the search for a single explanation for their existence, growth and size continues. The history of US and UK merger waves shows that each wave has had a different motivator, including regulatory and economic factors. The nature of the waves also changed with differences in the type of deals, the behaviour of the involved companies and the methods of paym...

A merger is a complex process and for investors it represents a situation of uncertainty on many levels. Investors may engage in online information exchange in order to reduce informational uncertainty. Social media can facilitate effective information exchange among investors. Drawing on the concepts of information processing and sense-making, I investigate information processing activities on...

The purpose of this research is to test the efficiency of market with respect to announcements of mergers and acquisitions using an event study methodology. Specifically, this study analyzed the effects of banks mergers and their announcements on the prices of stocks, in Europe. We study 18 deals that involve banks in Merger and Acquisition from year 2001 to 2010 in order to investigate the ret...

As mergers become increasingly important in the financial services industry, the need for proper sensitivity analysis to assess the financial impact of the merger is essential. Unlike industrial mergers, there is almost always initial dilution in a bank merger. This is because of the homogenous nature of bank P/E ratios and the high premium over book value that is typically paid. The problem of...

German banks experienced a merger wave throughout the 1990s. However, the success of bank mergers remains a continuous matter of debate. In this paper we suggest a taxonomy as how to evaluate post-merger performance on the basis of cost efficiency (CE). We categorise mergers a success that fulfill simultaneously two criteria. First, merged institutes must exhibit CE levels above the average of ...

Cross-border acquisitions often imply post-merger integration problems and cultural clashes. Despite the general acceptance of this concern, the literature is more interested in the wealth effect for the shareholders than in understanding the ways to improve postmerger performance. In this paper a model of post-merger integration is proposed and applied to a sample of cross-border acquisitions ...