Degree Year
2005
Document Type
Thesis - Open Access
Degree Name
Bachelor of Arts
Department
Economics
Advisor(s)
Kenneth Kuttner
David Cleeton
Keywords
Merger, Japan, M &38, A, United States, Mergers and acquisitions, Economy, Manufacturing
Abstract
Mergers and acquisitions are relatively new phenomena in the Japanese market. The total number M & A transactions per year has increased from approximately 500 to 1,752 between 1995 and 2002. MergerStat records 3,510 and 7,411 transactions in the U.S. for the equivalent years. The percentage of M & A transactions per number of business entities was 0.03% for Japan in 2001 and 0.1% for the U.S. in 2002. As illustrated through the figures, the frequency of M&A in Japan is considerably lower relative to the U.S., but proliferation of transactions is evident as well. Post-merger performances of firms in the progressing Japanese M & A market is an interesting subject to examine. Measuring the short-run performances of the firms should give insights for future transactions. Further, a comparison of the results with the U.S. M & A market may suggest how the Japanese M & A is likely to grow.
The goal of this research is to determine whether short-run post-merger effects following a transaction exist in the recent Japanese M & A market. 60 public manufacturing firms, consisting of merger and business transfer cases in 1995-1999 will be assessed through return on assets and return on equity. Periods examined for pre-merger and post-merger are 1990-1994 and 2000-2004 respectively. The "merger effect" will be examined upon controlling for the pre-merger effect on post-merger effect, the type of transaction, and the frequency of transactions in the time period being examined.
Repository Citation
Suzuki, Mami, "Post Merger Performances in Japan" (2005). Honors Papers. 472.
https://digitalcommons.oberlin.edu/honors/472
