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On the effect of financial integration in mergers and acquisitions

Author: SunZuoZi From: www.yourpaper.net Posted: 2010-06-01 09:10:16 Read:
(keywords) merger integration effect
[Abstract] business success for financial success, business failure is represented with financial failure, also can think, successful performance of M & A integration for the financial success of integration, enterprise merger failed to financial integration failure.Therefore, financial integration effect of mergers and acquisitions directly reflects the enterprise merger and acquisition success.
Financial integration effect mainly refers to the various benefits of financial integration brings to the enterprise in the financial aspect, has the benefit of not m improve efficiency and cause, and is a kind of capital due to taxation, accounting system and securities trading and other internal regulation role of I two benefits.
, the content of financial integration effect
(a) tax effect.The "{j tax F11 loss on deferred terms to achieve tax avoidance effect first, enterprises can.Loss carry-forward is refers to the enterprise the previous losses may be offset against future earnings, according to offset the surplus after paying income tax, therefore if a serious loss of business, the enterprise is often considered as the acquisition target, or the company will consider m & a profit-making enterprises, achieving the purpose of tax saving; in addition, if the M & A the convertible bond exchange is merging the enterprise shares, after a period of time and then converted to ordinary shares, so do tax also has two advantages: one is fi_I in the "tax shield effect" can reduce the income tax; two foot enterprises can keep these bond capital gains until these bonds into shares, m to delay payment of capital gains, enterprises can postpone the payment of cash flow.
(two) the full use of corporate cash flow.The J consists of cash flow, cash surplus in the payment business refers to all the net present value of the cash flow of investment plan.In different industries tendon stage enterprises, the NRH cash flow has the imbalance of great.The industry tendon early enterprises often have people access "in capital demand, through mergers and acquisitions can make two with different level of free cash flow of the enterprise to make full use of free cash flow.
(three) reduce the financing cost.Through mergers and acquisitions, the expansion of enterprise scale, which makes enterprises in the capital market to enhance the image, to provide financing r more favorable conditions for the enterprise through the capital market.Companies could issue a greater number of securities, so that the securities issuance costs.The listing Corporation merger and acquisition is the main power source to acquire the listing Corporation qualification, can raise capital through the stock market, China's J-, the company's profit distribution rI1 cash distribution of rare circumstances, the cost of capital of lower xu.
(four) reduce the capital demand.Centralized management through mergers and acquisitions provide opportunities, enterprises can reduce the total fund to take the level.
Indicators of financial integration effect calculation and economic meaning of two, enterprise M & A
Index calculation assumption is based on the company merger and acquisition, integration and basic financial indicators can be measured, this relationship is stable in time, and any deviation from this paternal can be corrected within a reasonable period of time.Among them, standard financial indicators selected which can reflect the performance of the company to enhance five abilities, namely the solvency, asset management capabilities, profitability, development capacity, basis of value creation ability, each index change trend can reflect the trend of the change of ability, such as earnings per share, EPS, can reflect the profitability in industry mature j9J enterprises often have surplus cash flow.Power increase.

three, financial integration effect better judgment standard
(a) compared with mergers and acquisitions in the year after the merger, the financial effects were increased (two) compared with the M & a year, one year after the acquisition of financial effect did not improve, but second years after the resumption of improving financial effect.(three) determine the range of M & a year before and after the [0, 4L, the reason is not only can reflect the company merger and acquisition and financial effect level, and can guarantee the effect will be brought about by the acquisition of basic included, interval greater financial integration effect, influence of horizontal when the M & a event that financial integration after M & A is the success of the.
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