Reasons to Combine : a Model for Evaluating Economic Gain

• Autorzy: Žaneta Simanavičiené , Lina Dagiliené

Warianty tytułu

Przesłanki ekonomiczne łączenia przedsiębiorstw

• Języki publikacji: EN

Abstrakty

EN

Business combinations are often accomplished because of complicated and variable business conditions. Companies enter various types of arrangements that may have at least some of the characteristics of a business combination. The paper reviews reasons for combining companies according to different literature sources. The most often met reasons are accelerated economic growth, diversification, tax advantages, prestige, and economies of scale. It is very important to evaluate strategic and organisational attributes of combining companies, especially in developing countries. Strategic attributes contain technology capability, foreign market power, and international marketing expertise. Organisational attributes arc managerial skills, international experience, and organisational reputation. Acquiring strategic and organisational competencies from foreign combining company, it is possible to bolster firm's growth and sustain a competitive advantage, to increase low productivity and poor management. The economic gain from merging and costs are also discussed. There are two quantitative methods of evaluating, when the merger is financed by cash and by stock. But qualitative methods - a careful analysis of reasons to combine - are indispensable. (original abstract)

Autorzy prezentują stanowisko, że łączenie przedsiębiorstw prowadzi do efektu synergicznego polegającego na tym. że dwa połączone przedsiębiorstwa są warte więcej niż w sytuacji, gdyby działały z osobna. W uzasadnieniu oceniają wiele strategicznych i organizacyjnych cech takich połączeń oraz przedstawiają wynikające stąd korzyści odnoszone zarówno przez same przedsiębiorstwa, jak i akcjonariuszy. (abstrakt oryginalny)

Słowa kluczowe

EN

Business combinations; Synergy effect; Economic benefits

PL

Połączenia jednostek gospodarczych; Efekt synergii; Korzyści gospodarcze

• Czasopismo: Prace Naukowe / Akademia Ekonomiczna w Katowicach
• Rocznik: 2003
• Tom: Przedsiębiorczość, konkurencyjność oraz kondycja małych i średnich przedsiębiorstw w obliczu integracji z Unią Europejską
• Strony: 395--406

Twórcy

autor

Žaneta Simanavičiené

• Vilnius University, Lithuania

autor

Lina Dagiliené

• Vilnius University, Lithuania

Bibliografia

• Arpan J.S., Radebaugh L.H.: International accounting and Multinational Enterprises. Warren, Gorhom and Lamont, Boston and New York 1981.
• Baker R.E., Lembke V.C., King T.E.: Advanced financial accounting. McGraw Book Company, 1989.
• Bekaert G., Harvey CR., Lumsdaine R.L.: The dynamics of emerging market equity flows. Journal of International Money and Finance, June, Issue 3, 2002, 295-350 p.
• Bilson Ch.M., Timothy J., Brailsford, Hooper V.C.: The explanatory power of political risk in emerging markets. International Review of financial Analysis, Issue 1, 2002, 1-27 p.
• Brealey R.A, Myers S.C.: Principles of Corporate finance. McGraw-Hill, New York, 1991.
• Cumby R.E, Pastine T.: Emerging market debt: measuring credit quality and examining relative pricing. Journal of International Money and Finance, October, Issue 5, 2001; 591-609 p.
• Cranadall R.H.: Intermediate accounting: an analytical approach. Prentice Hall Canada Inc., Scarborough, Ontario. 1992. 736-740 p.
• Farmer R., Richman B.: International Business: An Operational Theory. Homewood, Irwin, 1966.
• Fischer P.M., Taylor W.J., Leer A.J.: Advanced accounting. A26 South-- Western Publishing CO, West Chicago, ILL, 1982.
• Garner J.L, Nam J., Ottoo R.E.: Determinants of corporate growth opportunities of emerging firms. Journal of Economic and Business, January-February, Issue 1, 2002, 73-93 p.
• Kieso D.E, Weygandt J.J., Irvine B.J.: Silvester Harold W. Intermediate accounting. John Willy and Sons Canada Limited, Toronto, 1986, 461-479 p.
• Mudabi Ram. Knowledge in multinational firms. Journal of International Management 2002, No 8, 1-9 p.
• Odile E.M.: The emergence of corporate integrated innovation systems across regions: The case of the chemical and pharmaceutical industry in Germany, the UK and Belgium. Journal of International Management 2002, No. 8, 97-119 p.
• Park S.H, Ungson G.R.: The effect of national culture, organizational complementarity, and economic motivation on joint venture dissolution. Acad Management Journal, 1997, 279-307.
• Parkhe A. Interfirm diversity, organizational learning, and longevity in global strategic alliances. International Business Stud Journal 1991, 579-601.
• Perotti E.C., Pieter van Oijen: Privatization, political risk and stock market development in emerging economies. Journal of International Money and Finance, February, Issue 1, 2001, 43-69 p.
• Singh K., Hodder J.E.: Multinational capital structure and financial flexibility. International journal of Money and Finance, December, Issue 6, 2000, 853-854 p.
• Steiner A.G., Steiner F.J.: Business, Government and Society: A Managerial perspective. New York: McGraw-Hill. 1997.
• Susmel R.: Extreme observations and diversification in Latin American emerging equity markets. Journal of International Money and Finance, December, Issue 7, 2001, 971-986 p.