The Effects of Mergers and Acquisitions on Corporate Management and Financial Performance

DOI

10.2991/978-94-6463-052-7_99How to use a DOI?

Keywords

M&A; Managerial effects; Financial effects

Abstract

Over the past thirty-five years, there have been more than one million M&A cases worldwide, but the failure rate is 70–90%. Although mergers and acquisitions are useful approaches for corporations to expand the scale, it is double-edged. Therefore, it is important to critically examine its influence on corporate performance on both positive and negative sides, in order to warn companies not to choose M&A blindly. This paper firstly emphasizes that the volatility of staff turnover rate will negatively affect corporate managerial performance after consolidation. After that, this paper points out that how will the probability, liquidity and stock price will change due to the announcement of M&A. Furthermore, the paper explains how M&A will bring different effects to the business, owing to the distinction between different M&A instruments. The whole research mainly collects secondary data from previous studies and analyses it further with reference to LVHM’s consolidated financial statements.

Copyright

© 2022 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Guijiayi He
PY  - 2022
DA  - 2022/12/27
TI  - The Effects of Mergers and Acquisitions on Corporate Management and Financial Performance
BT  - Proceedings of the 2022 International Conference on Economics, Smart Finance and Contemporary Trade (ESFCT 2022)
PB  - Atlantis Press
SP  - 871
EP  - 877
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-052-7_99
DO  - 10.2991/978-94-6463-052-7_99
ID  - He2022
ER  -