• 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.

• 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.

• 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.

• The Transactions of the Korean Institute of Electrical Engineers A
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• v.55 no.12
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• pp.561-569
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• 2006

Because of the trend of deregulation, power industry is going through an unprecedented transformation in North America and Europe, and there are a host of acquisitions and mergers by the private sector to position themselves to take advantage of new business opportunities. Deregulation has accelerated the development of smaller generators and fuel cells will gradually become more attractive to mainstream electricity users as they improve in capability and decrease in cost. Fuel Cell technology is surveyed and the potential of using fuel cell as a distributed generation source is presented. This paper recommends the fuel cell power plants as alternative energy sources for distributed generation in Jeju Island, Korea. This will help in increasing fuel efficiency, at least double the current thermal plants', increasing the reliability of power supply, reducing the dependency on the HVDC link, providing quality power to the growing infrastructure, and maintaining clean air in meeting the free-trade international island.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.10
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• pp.327-339
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• 2021

This study examines the impact of bank restructuring on the financial performance of commercial banks in Vietnam. The data for this study was obtained from the audited financial statements of 30 Vietnamese commercial banks from 2007 to 2019. Multiple regression analysis was used for investigation. Financial performance, as evaluated by ROAA, ROEA, and NIM, is the dependent variable. Financial restructuring, ownership restructuring, and operational restructuring are the independent variables. Pooled least squares (Pooled OLS), fixed effects model (FEM), random effects model (REM), and system generalized moment regression model (System GMM) are the estimate methods used to increase the accuracy of the regression coefficient. The research results show that the variables of financial restructuring activities such as government intervention and the ratio of equity to total assets; variables of ownership restructuring such as capital adequacy ratio, privatization of state-owned commercial banks, mergers, and acquisitions; variables of operational restructuring such as employees, branches, the cost to total assets; GDP variables and the second restructuring period have a positive impact on financial performance. Variables such as debt-to-capital ratio, bad debt ratio, state ownership ratio, expense-income ratio, and inflation have a negative effect on financial performance.

• 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.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.47 no.1
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• pp.1-8
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• 2024

This study analyzed the impact of Higher-order resources on profit sustainability for domestic companies using a mathematical statistical model. Higher-order resources refer to resources that do not directly affect profits but influence other resources that directly contribute to profits. As a result of analysis using 30 years of actual data from more than 650 domestic companies, the average duration of competitive advantage including high-order resources was found to be about twice as long as the period suggested by the autoregressive model excluding high-order resources. Through this, if companies want to earn more profits over a long period of time than their competitors, they must not only possess resources that are more valuable, rare, difficult to imitate, and non-substitutable compared to their competitors, but also that higher-order resources can contribute to changes in these resources over time. It was confirmed that it must lead the long-term profit difference. High-level resources include strategic planning, mergers and acquisitions (M&A) capabilities, and good forecasting.

• KDI Journal of Economic Policy
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• v.33 no.3
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• pp.33-55
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• 2011

Market concentration in the Korean banking industry has markedly increased since the financial crisis of 1997-1998 because of M&As, P&As, and consolidation of banks. With this change, there has been a growing concern over market power in the Korean banking sector. We examine the effects of market concentration on bank efficiency and competition for the period of 1992-2006. Three different indicators of bank inefficiency are used in this study, including X-inefficiency that is derived from the directional technology distance function. The level of competition is measured by both the H-statistic of the Panzar-Rosse model and the level of the net interest margin and its standard deviation. Empirical results indicate that market concentration has not improved bank efficiency through scale economies or scope economies. Instead, recent mergers, acquisitions and consolidation of banks resulted in an increase in inefficiency measured by the three different indicators: X-inefficiency, labor inefficiency and asset inefficiency. While an increase in market share of individual banks improved bank efficiency, an increase in the overall market concentration ratio resulted in lower efficiency. Our study also finds that the Korean banking sector has been monopolistically competitive throughout the sample period except for the crisis period according to the H-statistic. Although an increase in market concentration ratio has not changed the overall level of bank competition, it has a positive significant effect on the level of the average interest margin.

• The Journal of Asian Finance, Economics and Business
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• v.2 no.1
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• pp.15-21
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• 2015

In this paper our main focus is to provide insight into the history of M&A's for this purpose we have analysed the different waves of M&A. We have analysed these waves in context of available literature and fact and figures. During the study we realised that almost all of the waves of M&A's ended because of financial crises, although impact and severity of that crises may differ. We analysed the impact of current crises on M&A in global context and in order to establish how companies have and in post crises era i.e. after crises of 2007 onwards how the companies have changed their corporate strategies to accommodate M&A's. We have also analysed which factors fuelled M&A's in past and were these factors present in post crises era M&A activities. By first quarter of 2011 the many firms saw new growth opportunities in M&A activities seemed to rebound as large companies used M&A's as part of their corporate strategy but this was cut short by events like US debt ceiling, down grade of USA's credit ratings along with fears about Eurozone's financial health and their impact on future prospects of M&A's would they continue to prosper or would they be weighed down by these events.