Introduction

[Audio] Good afternoon, everyone. I'm delighted to introduce my presentation on be have of our group members Aedah, Chonglin, Wang & Tanaka on the effects of mergers and acquisitions. In this paper, we will take a look at the wealth effects of these events, as well as the behaviors of CEOs and the characteristics of deals. We will provide a theoretical framework, and present empirical and statistical evidence to back up our findings. I will also explore potential areas for further research. I look forward to discussing this vital topic with you all Theoretical framework Behind Wealth effect The wealth effect refers to the change in shareholder value resulting from mergers and acquisition transactions. It can be either positive or negative, depending on various factors. We will examine the factors influencing the wealth effect, such as market conditions, firm characteristics, and deal structures. Additionally, we will discuss the empirical evidence and limitations in the literature and explore moderating and mediating factors that may affect the wealth effect. By understanding the underpinnings of the wealth effect in mergers and acquisitions, we can identify the driving forces that lead to value creation or destruction..

[Audio] The behaviour of CEOs has been identified as a key factor in understanding and maximising the wealth effects of mergers and acquisitions. Studies have correlated CEO characteristics with their behaviour, finding that aggressive CEOs are more likely to pursue mergers, while conservative CEOs may be more successful in managing the deal. Additionally, CEO traits have also been linked to deal characteristics such as premium, size, and synergy. Therefore, understanding the impact of CEO behaviour on both the deal and on the wealth effects of mergers and acquisitions is essential in order to maximise the potential returns from such deals..

[Audio] Understanding the traits and behaviours of CEOs can have a considerable impact on the outcomes of Mergers and Acquisitions. Overconfidence and narcissism typically result in both value destruction and additional agency costs. Risk-averse behaviours and managerial hubris also play a part in producing negative mergers and acquisition outcomes. Examining the interactions between these traits and determining the moderating factors that can influence the outcomes of Mergers and Acquisitions is essential. Research into this area is essential to assist in developing practical implications for corporate governance and executive selection..

[Audio] Research has uncovered numerous vital aspects that contribute to comprehending how corporate cash reserves and payment methods can have an impact on the wealth effects of mergers and acquisitions. Cash reserves can assist businesses in financing their investments without having to incur extra debt. Additionally, it can provide financial stability, letting them cover their short-term financial requirements or optimise their cash flows. Furthermore, it can reduce the cost of capital and strengthen the financing capability of companies. On the other side, having excessively large reserves of cash can eclipse its benefits, bringing about potential drawbacks. A further analysis is required to achieve an enhanced knowledge of the wealth effects of mergers and acquisitions and the role of cash reserves and payment methods.

[Audio] There is great importance in researching the size of firms, and there have been studies done that assess how mergers and acquisitions affect the size of companies. In 1971, Ijiri and Simon conducted an empirical study on this topic, and Wilson (1967) was the first to research the theoretical literature related to sealed-bid auctions and the knowledge asymmetry within it. Additional research on this subject is needed to understand the wealth effects of mergers and acquisitions, CEO behaviors and deal characteristics, and to provide further research directions.

[Audio] Concluding, this paper has examined the wealth effects of mergers and acquisitions, CEO actions and deal traits, offering a theoretical framework, empirical proof and future research directions. Our investigation accentuated the complexity of mergers and acquisition shareholder value production, the effects of CEO conduct on mergers and acquisitions, and the empirical data on value consequences. For both directors and investors, we suggest corporate governance, due diligence and R&D for executives, and board help, and shareholder plans rights for speculators. To finish, we pointed out the restraints and future research directions in that area..