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1992 was the year of the Single European Market. By 31 December 1992, agreement should have been reached on some 286 directives, which aimed to dismantle physical, technical and fiscal barriers to trade. In so doing, it was expected that community businesses would become more integrated, allowing them to compete on more equal terms as Eurobusinesses with the global players of the US and Japan. It was predicted that greater intra‐Community competition would be a necessary precursor of this outcome, and that this will lead to industries restructuring through mergers and joint ventures to increase market share and economies of scale by reaching a “minimum efficient size”. Examines the trends in cross‐border mergers/acquisitions and joint ventures for the period 1986 to 1989 and concludes that, for both small and large firms, such activity has increased. Further, an analysis of EC material on the subject reveals that firms′ reasons for such developments appear to have become more market‐oriented over time.

This study seeks to examine whether CEO duality further exacerbates CEOs' motivation of self‐interest to engage in mergers and acquisitions to increase their compensation.

Regression tests using CEO compensation as the dependent variable, and CEO duality, firm size and firm performance as independent test and control variables. The regression tests are used for various sub‐samples of the firms, those that merge and those that have CEO duality.

The results indicate that for merging firms CEO compensation is positively associated with firm size. However, this association is unaffected by CEO duality. For non‐merging firms, the results indicate that CEO compensation is positively associated with firm size and firm performance. CEO duality moderates the positive association between CEO compensation and firm performance.

This study is limited to the extent that it does not observe the deliberations of compensation committees in their setting of CEO compensation, but only examines the outcomes of those deliberations. A future area of research is to examine compensation schemes of merger/acquisition CEOs in the context of other government structures, such as board independence and composition.

Shareholders who desire to keep CEO compensation levels positively associated with firm performance may consider supporting the separation of the positions of CEO and Chairperson of the Board.

This study contributes to the literature by concluding that governance structure influences CEO compensation schemes and CEOs of merging firms command higher compensation in spite of governance structure and firm performance.

Overall employee satisfaction may be used as a referral point when trying to understand or explain a dissatisfying incident. In this context, this study examines if, in case of a major dissatisfying organizational incident, employees' prior overall view of their employment relationship changes their perception of current employment relationship's quality. Specifically, it is expected that job satisfaction, perceived organizational support (POS), organizational identification, and organizational loyalty cause significant differences among employees, with regards to their beliefs about contract breach after a major organizational change. The study took place in Greece, where organizations that had recently gone through a merger or acquisition (MorA) were asked to allow employee participation in the study. Independent t-tests confirmed most of the hypotheses stated.

Projections are made concerning the nature and focus of merger, acquisition, and alliance activity in the post‐1992 environment by both US and European hospitality firms. Recommendations are offered concerning the most viable business strategies facing hospitality organisations in the Internal Market of 1992.

The purpose of this paper is to analyze the merger and acquisition (M&A) strategy focusing on Indian company’s approaches and to understand steps of the process adopted by them. It focuses on the rationality of M&A and its impact on the profitability. This paper also discusses whether financial transaction in terms of value is right or done because of eagerness to expand by calculating the financial value of brand equity independently.

The operating performance, capital adequacy and solvency measures were compared to three-years pre- and post-merger from the financial statements of the organizations through financial valuation of brands. Inter-brand and RKS model are used to calculate the brand value. The perception study on M&A is also conducted by interviewing stakeholders. This paper provides a theoretical and practical basis to decide on whether M&A. The present paper has taken recent mega M&A of Ranbaxy Lab by Sun pharmaceuticals for the analysis.

The results of the paper showed that Return on investment did not indicate significant improvement, but on average, it can be concluded that overall performance of the acquirer improves as a result of M&A activity as per the study. The decisions on M&A are more emotional than rational. The present paper reveals that M&A of pharmaceutical company was riskier because of emotional decisions. Research has proposed “Merger, acquisition Theory (RERC MA theory) based on rational, emotion, risk taking ability culture” to understand the M&A.

This paper is more focused on emerging markets which is more active with better gross domestic product (GDP) growth. It is more on analysis of financial decisions and has not taken customer equity, employee morale and engagement. A further study is suggested in the same areas. Managerial Implications: This paper will enable the managers to withstand the emotional influence and will help them to be more professional approach which will benefit the organization and stakeholder better. Mangers should look for long-term impact than short-term impact the present paper will also help them to understand on how financial calculations will help them to take more rational decisions.

Although the topic is not very new, a lot of literature is available on M&A, but the pharmaceutical sector is comparatively new for such kind of studies. Specifically, the selection of respondents and brand valuation mechanism has got practical implications. Earlier papers on M&A paper are more focused on customers’ equity, but a financial analysis of M&A is done in the present paper will help to evaluate merger and acquisition process more analytically. Financial calculation for evaluating M&A is the highlight of this research paper. Study of M&A from emerging markets will help to increase the knowledge as such papers are few. Research uses two important financial tools to measure financial brand equity and tries to justify the need for more rational rather than emotional approach. Research has proposed “Merger, acquisition Theory (RERC MA theory) based on rational, emotion, risk taking ability culture” to understand the M&A.

The purpose of this paper is to address whether the past dividend policy of target firm impacts dividend policies following US mergers and acquisitions (M&A).

The authors use the catering theory as a theoretical approach to test dividend change after a merger-acquisition. For the empirical design, dividend policy is captured using dividend status, payout ratio and dividend yield, and specifications are estimated using Probit and OLS models.

The data indicate that dividend policy of the target affects dividend policy of the combined entity in cases of stock-based deals. This result provides support for catering theory, which maintains that managers of acquirers adjust dividend policies following transactions to cater to target shareholders’ preferences.

Although the tests suggest significant results using dividend status and payout ratio as measures of dividend, the authors do not find a similar effect for dividend yield.

Financial analysts evaluating merger-acquisition announcements may wish to predict the dividend policy following stock-based deals as they project the likely impact of past dividend policies of target firms. The results are also likely to be useful to investors.

The paper presents new evidence about dividend policy following M&A. To the authors’ knowledge, this is the first study that examines how an acquirer’s dividend policy is affected by an acquisition.

During the 1990s, the rate of consolidation among agricultural cooperatives, including mergers, acquisitions, strategic alliances, and joint ventures, increased significantly. While post‐merger performance has been examined extensively for investor‐owned firms, this has not been the case for agricultural cooperatives, primarily because these firms do not have an explicit profit motive or publicly traded stock. Results from a two‐stage econometric model reveal that a major motivation for cooperatives to engage in these activities is to circumvent capital constraints. Furthermore, the decision to merge and financial performance are jointly endogenous, with profitability positively influenced and sales growth negatively influenced by the likelihood of merger.

Corporate history has featured a number of approaches to restructuring, both internal and external to the firm. External restructuring has taken place through a variety of mechanisms, including mergers, acquisitions, consolidations, divestitures, leveraged buyouts, and spinoffs. Restructuring has been especially prevalent on worldwide basis since the 1980s. In addition to developments in western industrialized economies, the presence of the phenomenon within the world business system has been augmented by the transition of so many previously planned economies to a new market‐based framework.

This paper aims to examine empirically if the encouragement by government policy of merger and acquisition activity involving municipal and provincially owned electricity distribution utilities (LDCs) in the Province of Ontario has had positive effects in terms of value creation, operating performance and economies of scale.

It was anticipated that with LDC consolidation, there will be increased operational efficiency and improvement in the cost-effectiveness of the merged electrical utility. Using matched pairs dependent t-testing and Wilcoxon signed-rank testing, the authors compared data for three years before and after the merger or acquisition of 16 municipal utilities (616 total observations) to determine if there were any statistically significant changes (positive or negative) in measures of financial, operational and service efficiency.

The findings indicate statistically significant increases in debt as a percentage of shareholder equity in post-merger/acquisition utilities and consequently leveraged higher returns on equity. However, there were no statistically significant changes in financial, operational or service efficiency measures (with the exception of decreased efficiency in telephone response).

A total of 16 mergers or acquisitions were reviewed involving 32 of 79 LDCs, with the research implications pointing to a need for existing policy to be reviewed to determine whether a more detailed examination is required by the provincial energy regulator, including a closer examination of managerial motives, before approving mergers between municipal electricity distributors. This research involves only a quantitative approach and further research would examine these transactions using qualitative measures for a deeper examination as to managerial motives.

The results suggest that the mergers or acquisitions to date have served only to increase shareholder risk without improvement in other financial, operational or service efficiencies, a contradiction to the rationale behind the Province’s merger policy.

The consolidation policy for Ontario LDCs has not resulted in any statistically significant improvement in electricity rates or service for consumers.

This paper is the first examination of the effects of Ontario’s LDC consolidation policy in terms of specific financial, operational and service efficiency measures.

Corporate mergers, acquisitions and major divisional consolidations put high‐profile, fast track demands on corporate real estate and facilities groups to: (1) reformulate site and facilities portfolios to support new global business goals and objectives; (2) implement the programs and projects needed to restructure these portfolios; and (3) take a global approach to site and facilities utilisation and management for the new merged entity. This paper will set out a comprehensive framework and process for determining and evaluating merged or consolidated site and facility plans, deciding on optimal strategies, and scoping out the tasks needed to make it all happen.