• Knowledge Management Research
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• v.5 no.1
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• pp.39-56
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• 2004

Mergers and Acquisitions(M&A) have long played an important role in the growth of firm. M&A has been considered a effective strategy for Korean government to restructure industry. Previous studies provided mixed results on the synergy effect of M&A This study provides investigation on 39 mergers occurred over the sample period from 2000 to 2001. In this study, event study methodology arc used to calculate abnormal return(AR) and cumulative abnormal return(CAR) based on mean-adjusted model. The testing period of this study from date -30 through date +30, where date zero is the date of the first public announcement of the merger. The empirical results in this study can be summarized as follows. First, the return rates of KOSDAQ registered firms with M&A appears higher than that of KSE listed firms. This means that public announcement of M&A is more influential on stock price for KOSDAQ registered firms than KSE listed firms. Second, The difference between actual merging price and fair value is significant in KSE listed firms and KOSDAQ registered firms. This means that the investors take M&A of KOSDAQ registered firms as a good news. Third, the impact on the market prices of merging firms take place after the first public announcement of the merger in KSE registered firms. But the impact on the market prices take place not only merging firms but also merged firms in KOSDAQ registered firms. This result shows that the investors recognize a M&A is a strategy of technology transfer in small & venture business.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.12 no.6
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• pp.49-63
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• 2017

The purpose of this study is to analyze the effects of the collective characteristics of SMEs on M&A activity on the disclosure effect of mergers and long-term business performance after mergers. From 2000 to 2012, we examine 717 cases of small and medium-sized enterprises (SMEs) using multiple regression analysis and difference analysis. The results of this study are as follows. First, it is confirmed that the effect on the merger announcement effect is the same as the previous study on the Korean capital market listed companies except for the effect of diversification, listing effect, and cross-border effect. In addition, we have found that firms with higher performance in the past have higher excess returns in the disclosure effect of mergers and acquisitions. Second, unlike the previous studies that non-related mergers have a positive effect on long-term operating performance, for the characteristics of SMEs with lower market competitiveness than that of average listed companies, SMEs merging with same industry group companies have a positive effect on long-term operating performance. This study provides a new perspective on the merger and acquisition of SMEs by examining the effects of M&A announcement and long-term performance.

• Journal of Distribution Science
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• v.12 no.7
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• pp.45-51
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• 2014

Purpose - This study aims to explore the success of Lotte Mart in the global market, as well as examining the factors related to its entry methods. Research design, data, and methodology - This study analyzed the differences between Lotte Mart and E-mart in terms of their market entry methods, based on references and secondary data. This study is based on qualitative research that analyzes actual cases. Based on the results, this study analyzed and discussed actual cases based on references and secondary data, including newspaper interviews on Lotte Mart. Results - Lotte Mart succeeded in adapting to local markets it did this by ensuring the use of both mergers and acquisitions (M&As) and greenfield methods. In contrast, E-mart utilized only greenfield methods. Conclusions - The findings of this study may not be generalized to all industries, as only Lotte Mart was examined using the case analysis method. Therefore, the successful market entry modes of various companies should be explored in terms of FDI.

• Journal of the Korean Society for Aviation and Aeronautics
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• v.31 no.3
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• pp.142-160
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• 2023

This research explores how different corporate cultures can influence the post-M&A performance of the airlines undergoing strategic M&A in Korea. The sample size of this research is 214 respondents that is strictly limited to the employees of airlines under M&A process, and CFA and SEM were employed for the statistical analysis. This research investigated that corporate cultures including group-oriented, development-oriented, and rationale-oriented will positively influence the post M&A performance of both efficiency and effectiveness through a mediation of collaboration during M&A process. In contrast, relations between grouporiented culture and interaction, interaction and effectiveness were not revealed positive influences. The findings of this research will provide valuable insights into the potential risks that can impede successful M&A within the M&A process, specially focusing on the conflicts between organizations stemming from different organizational cultures, which can have an adverse impact on M&A performance.

• The Journal of Asian Finance, Economics and Business
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• v.9 no.1
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• pp.299-310
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• 2022

Environmental protection has been infused into the development of numerous fields by the Chinese government. The government's implementation of green development has also shifted its focus to green transformation and governance of highpolluting companies. In the context of green and sustainable development, this study employs DEA data envelopment analysis to compare the operating efficiency of listed firms that implemented Green Mergers and Acquisitions (M&A) in China in 2018. The conclusions of this study are as follows: First, China's green M&A enterprises are unevenly dispersed among the country's east, middle, and western regions. Second, compared to before the implementation of Green M&A, operational efficiency has improved in most industries. Third, the difference in Green M&A across industries is generally favorable, showing that most organizations have improved their operational performance as a result of Green M&A implementation. In 2018, however, the gap in operating efficiency is more negative. Fourth, whereas the eastern and western areas' operational efficiency has improved as a result of Green M&A, the central region's has not. Based on this conclusion, this study makes recommendations for China's future sustainable development of heavily polluted firms.

• Asia-Pacific Journal of Business
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• v.14 no.1
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• pp.1-19
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• 2023

Purpose - The purpose of this study was to examine the internal relevance between digital transformation, manipulation of asset evaluation and corporate M&A performance and further explores the impact path of manipulation of asset valuation on corporate M&A performance. Design/methodology/approach - This study based on the financial data of A-share listed companies in Shanghai and Shenzhen Stock Exchanges from 2013 to 2021. Findings - First, manipulation of asset evaluation is negatively correlated with M&A performance. Second, Digital transformation significantly weakens the negative correlation between manipulation of asset evaluation and corporate M&A performance. Third, The effectiveness of internal control plays a partially intermediary role in the process of manipulation of asset evaluation affecting M&A performance. Research implications or Originality - Enriching the existing literature on the subject, the study can also provide useful reference for improving the performance of corporate mergers and acquisitions, regulating asset valuation, promoting the digital transformation of enterprises and improving internal control mechanisms, with both theoretical and practical implications.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.14 no.1
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• pp.85-93
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• 2013

While relatively many researches have been performed on the legal issues of leverage buyout(LBO) in the Korean capital market, the on-going 'interdisciplinary studies' between the legal and the financial aspects of LBO financing structure seems to be relatively few so far. In this particular study, the concept and major financing structures on LBO have been discussed, by which domestic investors including institutional investors, may acquire in-depth knowledge on the issue given the dynamically changing circumstances surrounding the Korean domestic capital market. Moreover, legal analyses related to the conventional case studies on two types of LBO structures such as 'asset-backed LBO' and 'merger-related LBO', have been illustrated, coupled with the review of the previous literature on mergers & acquisitions(M&A) related to the financial aspects of LBO financing structure. From the director's perspective, who is employed by an acquired firm, legal issues in terms of 'fiduciary duty' and 'duty of loyalty' have been discussed, along with the logical scope of 'business judgement principle' in terms of modern finance theory.

• Journal of Distribution Science
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• v.17 no.1
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• pp.47-56
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• 2019

Purpose - This case study illustrates the story of eBay Korea, which owns two most leading Korean open market companies, AUCTION and Gmarket. The main concerns are to take over the Korean top domestic companies one by one, then, emerge these two giants through its well-developed post-merger Integration by eBay, an American multinational corporation. Research design, data, and methodology - This case explores various secondary resources such as periodicals, annual reviews, magazine, news articles, commentaries, even some interview materials related to 'eBay Korea' and industry source on condition of anonymity based on the critical reviewing of existing studies on these topics as well. Results - The findings of this study show the merger and acquisition of two market leaders in Korea is the only successful case in Asian Markets. The eBay's choice of entry mode is appropriate considering the timing, synergy and efficiency by sharing their resources. Conclusions - This study examines the successful entry and settlement process of foreign, multinational company through mergers and acquisitions in the Korean market. This would be a valuable in the studies of International Business and Global entry or distribution strategy in the e-commerce and open market dealing with M&A and its post-merger integration.

• Journal of Korea Port Economic Association
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• v.27 no.2
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• pp.261-273
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• 2011

Mega-corporations are emerging as a result of M&As (mergers and acquisitions) in the logistics industry. The global logistics market has progressed in a continuously competitive manner. Global logistics corporations provide integrated set of services, from production to disposal in order to manage the process efficiently throughout the diverse regions of the world. To advance into an total integrated logistics provider, the corporation must have professional knowledge in logistics and information technology which are necessary to deliver effective integrated logistics solutions. The government has integrated the logistics corporations both horizontally and vertically with the aim to foster logistics corporations possessing global competitiveness. Six years have passed since the implementation of the comprehensive (total) logistics industry certification system in pursuit of making Korea the hub for the Northeast Asian logistics market. This study compares and analyzes the efficiency of nine mega integrated logistics providers by applying the CCR model and BCC model. Each of the nine corporations is subject to certification as integrated logistics corporations. In Korea, nine corporations are certified individually as integrated logistics corporations out of the 31 logistics providers. The analysis showed that the Glovis was the most efficient integrated logistics provider reaching 100% in efficiency and displayed the highest efficiency for six consecutive years from 2005 to 2010. The study also found that the Glovis will be able to maintain 100% in efficiency rate, even though the input are increased over six times as many as those of 2010.

• Journal of Korea Trade
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• v.26 no.6
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• pp.118-135
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• 2022

Purpose - The purpose of this study is to investigate the relationships among Chinese state-owned enterprises (SOEs), previous M&A experience, and the probability of deal completion in cross-border mergers and acquisitions (CBMAs). Since Chinese SOEs tend to be recognized by host countries as agents of their home country government, this study argues that SOEs will face difficulties in completing CBMA deals. However, the study expects that these difficulties may vary depending on whether the firm has previous M&A experience because firms can gain the knowledge and capabilities necessary to implement subsequent M&As successfully from past M&A experience. Design/methodology - To investigate our argument, we conduct a logistic regression using a sample of 363 CBMA deals from 304 Chinese publicly listed firms during 2007 to 2017. We used SOEs as an independent variable, experience of domestic and foreign M&As as moderating variables, respectively, and CBMA deal completion as the dependent variable. Findings - The study shows a negative and significant relationship between Chinese SOEs and the completion likelihood of CBMA deals. We find that this negative relationship is strengthened when the firm had prior domestic M&A experience, whereas foreign M&A experience alleviated the negative relationship. Originality/value - The issue of government ownership has remained unclear since government intervention has both advantages and disadvantages in pursuing CBMAs. Our findings support literature that argues Chinese SOEs face legitimacy concerns in the host countries, thereby lowering their CBMA deal completion likelihood. Furthermore, the study enriches the literature by identifying different moderating effects of domestic and foreign M&A experience on the negative relationship between SOEs and CBMA deal completion.