Mergers and acquisitions : identifying major financial factors affecting level of M&A activity.
Given the increasing importance of Mergers and Acquisitions (M&A) in driving corporate development, this paper seeks to explore and identify the major financial factors that have an impact on the level of M&A activity. 2. Methodology Primary data on examined factors were obtained from Bl...
| Main Authors: | , , |
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| Other Authors: | |
| Format: | Final Year Project (FYP) |
| Language: | English |
| Published: |
2010
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| Subjects: | |
| Online Access: | http://hdl.handle.net/10356/35257 |
| _version_ | 1811683789535969280 |
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| author | Lim, Wei Jian. Hoe, Meng Wee. Yong, Cheryl Ke Xin. |
| author2 | Nanyang Business School |
| author_facet | Nanyang Business School Lim, Wei Jian. Hoe, Meng Wee. Yong, Cheryl Ke Xin. |
| author_sort | Lim, Wei Jian. |
| collection | NTU |
| description | Given the increasing importance of Mergers and Acquisitions (M&A) in driving corporate development, this paper seeks to explore and identify the major financial factors that have an impact on the level of M&A activity.
2. Methodology
Primary data on examined factors were obtained from Bloomberg and analyzed statistically using SPSS. Secondary data sources included books and journal articles.
3. Findings
Rising stock market index has a positive influence on the dollar volume of M&A transactions.
With time lag, a lower cost of borrowing in the corporate debt markets is found to be an important factor in driving M&A growth.
Higher market P/E ratios in the broad markets appear to be non-conducive to M&A deal making.
Qualitative considerations such as synergy, growth and diversification etc are examined as well to provide a more balanced viewpoint.
4. Suggestions for further research
Identify other potential financial factors that may affect the level of M&A activity.
Study the relevance of our research to specific industries/sectors and identify how industry dynamics can support or invalidate our research conclusion.
Examine the validity of the qualitative factors discussed in the current economic climate through the use of case study techniques. |
| first_indexed | 2024-10-01T04:18:19Z |
| format | Final Year Project (FYP) |
| id | ntu-10356/35257 |
| institution | Nanyang Technological University |
| language | English |
| last_indexed | 2024-10-01T04:18:19Z |
| publishDate | 2010 |
| record_format | dspace |
| spelling | ntu-10356/352572023-05-19T05:41:39Z Mergers and acquisitions : identifying major financial factors affecting level of M&A activity. Lim, Wei Jian. Hoe, Meng Wee. Yong, Cheryl Ke Xin. Nanyang Business School Siriwan Chutikamoltham DRNTU::Business Given the increasing importance of Mergers and Acquisitions (M&A) in driving corporate development, this paper seeks to explore and identify the major financial factors that have an impact on the level of M&A activity. 2. Methodology Primary data on examined factors were obtained from Bloomberg and analyzed statistically using SPSS. Secondary data sources included books and journal articles. 3. Findings Rising stock market index has a positive influence on the dollar volume of M&A transactions. With time lag, a lower cost of borrowing in the corporate debt markets is found to be an important factor in driving M&A growth. Higher market P/E ratios in the broad markets appear to be non-conducive to M&A deal making. Qualitative considerations such as synergy, growth and diversification etc are examined as well to provide a more balanced viewpoint. 4. Suggestions for further research Identify other potential financial factors that may affect the level of M&A activity. Study the relevance of our research to specific industries/sectors and identify how industry dynamics can support or invalidate our research conclusion. Examine the validity of the qualitative factors discussed in the current economic climate through the use of case study techniques. BUSINESS 2010-04-15T02:00:31Z 2010-04-15T02:00:31Z 2010 2010 Final Year Project (FYP) http://hdl.handle.net/10356/35257 en Nanyang Technological University 41 p. application/pdf |
| spellingShingle | DRNTU::Business Lim, Wei Jian. Hoe, Meng Wee. Yong, Cheryl Ke Xin. Mergers and acquisitions : identifying major financial factors affecting level of M&A activity. |
| title | Mergers and acquisitions : identifying major financial factors affecting level of M&A activity. |
| title_full | Mergers and acquisitions : identifying major financial factors affecting level of M&A activity. |
| title_fullStr | Mergers and acquisitions : identifying major financial factors affecting level of M&A activity. |
| title_full_unstemmed | Mergers and acquisitions : identifying major financial factors affecting level of M&A activity. |
| title_short | Mergers and acquisitions : identifying major financial factors affecting level of M&A activity. |
| title_sort | mergers and acquisitions identifying major financial factors affecting level of m a activity |
| topic | DRNTU::Business |
| url | http://hdl.handle.net/10356/35257 |
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