Arthur Bert, Timothy MacDonald and Thomas Herd
Today, with years of corporate experience in managing mergers and acquisitions, there is little excuse for deals that don’t create value. Regrettably failure is the case more…
Abstract
Today, with years of corporate experience in managing mergers and acquisitions, there is little excuse for deals that don’t create value. Regrettably failure is the case more often than not. Depending on the industry, a top‐performing merger can increase shareholders’ wealth anywhere from 4 to 65 percent above industry averages. But such rewards only go to companies that understand that merger success is built on two main factors: timing and execution. A.T. Kearney’s findings indicate that a company has just two years to make the deal work. After year two, the window of opportunity on forging merger synergies has all but closed. This article highlights the reasons why timing is so important to merger success, and lays out the seven ground rules‐from selecting leaders quickly, and establishing clear goals, to managing risks and expectations – that leading acquirers abide by to ensure merger success.
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Jeffery S. Perry and Thomas J. Herd
Making an M&A deal “work” is one of the hardest tasks in business. A handful of best practices can reduce the risk and give the deal a fighting chance. The inherent danger in due…
Abstract
Making an M&A deal “work” is one of the hardest tasks in business. A handful of best practices can reduce the risk and give the deal a fighting chance. The inherent danger in due diligence is not that companies fail to do it, but that they fail to do it well. The deals that are being struck today are far riskier than those of the 1990s. Four “best practices” separate the winners from the losers in the M&A playoffs. Call on the experts (internal and external) who have experience in helping companies identify and realize cost and revenue synergies. Trust but verify. Focus on what matters – such as: create an aggressive market penetration strategy; devise an innovative plan for product launches; realign the sales force; rationalize the supply chain network and IT applications and create a shared services organization. Identify the high priority, complex initiatives, determine the associated risks and craft risk mitigation plans. Orchestrate the unveiling – smart acquirers know that analysts react more favorably to an announcement of an acquisition if it is followed up with a cogent discussion about the acquirer’s high priority integration initiatives, key risk factors and risk mitigation plans (including timing of each).
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Petros Messis and Achilleas Zapranis
– This study aims to investigate the existence of herding in the Athens Stock Exchange over the 1995-2010 period and examine its effects on market volatility.
Abstract
Purpose
This study aims to investigate the existence of herding in the Athens Stock Exchange over the 1995-2010 period and examine its effects on market volatility.
Design/methodology/approach
Herding is examined over portfolios formed on beta and size of the selected stocks. The detection of herding has been done using the state space model of Hwang and Salmon (2004). Four volatility measures are employed.
Findings
The findings depict the presence of herding over two different periods of time. Large differences are observed among the portfolios regarding the herding periods. The results confirm a linear effect of herding on all volatility measures considered. Stocks exhibiting higher levels of herding or adverse herding will also present higher volatility, and from this point of view, herding can be regarded as an additional risk factor.
Originality/value
The fact that herding is considered to be an additional risk factor, can lead market participants and investors to a better understanding of market risk, asset pricing and asset allocation.
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The massive output of legislation in recent years, with the modern practice of making so many statutes as enabling acts, their powers being completed by the making of regulations;…
Abstract
The massive output of legislation in recent years, with the modern practice of making so many statutes as enabling acts, their powers being completed by the making of regulations; all this cannot have made the work of parliamentary draftsmanship easier. When, as with so many regulations concerning food, these have attempted to exert a much closer control of the practices of a variety of trades and the persons employed therein than has ever been the case before, drafting becomes even more difficult. Nowhere is the tendency towards greater control of personal actions and cleanliness more marked than in the field of food hygiene.
‘CARTO‐BIBLIOGRAPHY’ must surely be just about the ugliest term in a cartographer's vocabulary, but to its inventor, Sir Henry George Fordham, it represented something of the very…
Abstract
‘CARTO‐BIBLIOGRAPHY’ must surely be just about the ugliest term in a cartographer's vocabulary, but to its inventor, Sir Henry George Fordham, it represented something of the very greatest significance, and it is as well for us that it did. It was in 1896 that Sir George made his decision to compile a catalogue of Hertfordshire maps, ‘little conscious’, he was later to confide, ‘of the amplitude such a work could assume’. Can there be anyone who has undertaken a carto‐bibliography since who has not echoed at some point Fordham's confession? Working alone, and without guidance from any similar previous compilations, he had no choice but to devise his own forms, methods, and arrangements, ‘digesting my materials’, as he put it, ‘according to the lights they seemed to throw upon the subject’. The resulting compilation, the first real British carto‐bibliography to see the light of day, began to appear in the Transactions of the Hertfordshire Natural History Society in October 1901. Six years later, in September 1907, it was completed and published in volume form as Hertfordshire maps: a descriptive catalogue of the maps of the county, 1579–1900. A supplement followed in 1914.
Maurice Yolles, Gerhard Fink and Daniel Dauber
Modelling the organisation to enable purposeful analysis and diagnosis of its ills is often problematic. This is illustrated by the unconnected non‐synergistic plurality of…
Abstract
Purpose
Modelling the organisation to enable purposeful analysis and diagnosis of its ills is often problematic. This is illustrated by the unconnected non‐synergistic plurality of organisational models each of which relates to a particular isolated frame of thought and purpose. A cybernetic approach is adopted to create a generic psychosocial model for the organisation that is used to characterise its emergent normative personality. Organisations are often complex, and seeing them in terms of their normative personality can reduce the complexity and enable a better understanding of their pathologies. This paper seeks to do two things. The first is to show that it is possible to set up a generic model of the organisation as an agency, and the second is to show that this same model can also be represented in the alternative terms of the emergent normative personality. In order to do this, an understanding of what it is that constitutes generic criteria is required. In addition, the paper shall show that organisational and personality theories can be connected generically. One of the consequences of the theory is that the patterns of behaviour which occur in an agency have underlying trait control processes.
Design/methodology/approach
A meta‐systemic view of the organisation is adopted through knowledge cybernetics that enables more flexibility and formality when viewing organisational models. The paper develops a formal generic model of the organisation that should facilitate the exploration of problem situations both theoretically and empirically.
Findings
The outcome of the research formulates the cognitive processes of normative personality as a feasible way of explaining organisations and provide a capacity to analyse and predict the likelihood of their behavioural conduct and misconduct. As an agency trait model, agency explains the socio‐cognitive aspects of self‐organisation and the efficacy of connections between the traits. These traits control the personality, and inter‐trait connections are Piagetian intelligences that orient the traits and work through forms of first‐ and second‐order autopoiesis. The development of a typology of pathologies is also suggested as feasible.
Originality/value
There are previous metaphorical notions that link agency with traits. Here, metaphor is extended to produce a formal model for the emergent normative personality. This is the first time that socio‐cognitive and trait approaches are formally linked, as it is the fist time that a typology for organisational pathologies is proposed.
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Yu-Fen Chen, Thomas C. Chiang, Fu-Lai Lin and Sheng-Yung Yang
This chapter examines herd behavior across national borders. A dynamic latent factor model with Gibbs sampling is used to decompose the national herd behavior into the world…
Abstract
This chapter examines herd behavior across national borders. A dynamic latent factor model with Gibbs sampling is used to decompose the national herd behavior into the world, regional, and country-specific components. Testing the daily data from 2000 through 2014 for 47 countries, we find that the impact of world factor on national herd behavior is short-lived. This study indicates that world and regional factors play a significant role in explaining the variations of national herd behavior, constituting 33% of the herding variability. The significance of world and regional components is likely to produce a biased herding estimator.
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Julia Henker, Thomas Henker and Anna Mitsios
The purpose of this research is to consider whether market wide herding occurs intraday.
Abstract
Purpose
The purpose of this research is to consider whether market wide herding occurs intraday.
Design/methodology/approach
Using the 1995 Christie and Huang and the 2000 Chang et al. models, the paper tests whether market wide and industry sector herding occurs intraday in the Australian equities market.
Findings
Neither market wide nor industry sector herding occurs intraday.
Research limitations/implications
Both herding measures focus on one specific type of herding, herding evidenced by changes in the cross‐sectional return distribution. Therefore the herding measures are ill suited to capture the effects of period specific abnormally high or low market returns and they can also capture herding of market participants or groups of market participants only in as far as it manifests itself in security specific returns.
Originality/value
No previous studies have considered the possibility of intraday herding in equities markets. Even if there is little evidence of herding over longer time periods, market frictions and inefficiencies continue to be exploited at least anecdotally by traders with very short time horizons to the detriment of longer term investors.