Investigation of the Factors Affecting on Probability of Company Acquisition (Focusing on Refining and Petrochemical Companies)
Journal Title: International Journal of Finance and Managerial Accounting - Year 2017, Vol 2, Issue 5
Abstract
Business expansions along with number of new companies being engaged in variety of industries aimed at getting bigger market share, underscored the role of corporate governance within the financial sphere. One of the important issues in corporate governance is acquisition. Due to the significant impact of companies in refining and petrochemical sectors on capital market and whole economy, their corporate governance should be addressed accordingly. In this study, the relation between acquisition and aspect of the company, in firms listed in Tehran stock exchange or Iranian farabourse[i], has been investigated for the period 2009-2014. Size (logarithm of total assets), management efficiency (operational profit to total assets), efficient financial structure (Current debt to cash) and incorrect valuation (price to book value) are among factors affecting on acquisition a company. In this study we found that the type of company (refinery and petrochemical) does not effect on acquisition. With the investment policy of firms, they can choice appropriate target for acquisition when considering the size of target compared with firm size, management efficiency, efficient financial structure and the price to book value ratio of the target company.
Authors and Affiliations
Mehran Kaviyani Joopari, Ali Mohammad Ghanbari, Moslem Peymany Furoshany
Keywords
Related Articles
- EP ID EP535417
- DOI -
- Views 80
- Downloads 0
Explaining the Role of Management Accounting Information System in Strategy Formulation with Actors Network Approach
The real challenge of business environment is derived from a situation where organizations need to find opportunities on how to introduce ideas and new products to market that provide future earnings stream. Management a...
Evaluation of Corporate Governance Practices in Emerging Markets (A case study of Nigerian Banking Industry)
This study explores corporate governance practices within the context of the Nigerian banking industry using instances of corporate governance lapses that resulted in part to the Nigerian banking crises. We present multi...
Investigation of the Factors Affecting on Probability of Company Acquisition (Focusing on Refining and Petrochemical Companies)
Business expansions along with number of new companies being engaged in variety of industries aimed at getting bigger market share, underscored the role of corporate governance within the financial sphere. One of the imp...
Finding Default Barrier and Optimal Cutoff Rate in KMV Structural Model based on the best Ranking of Companies
According to the adverse consequences that are brought by financial distress for companies, economy and financial –monetary institutions, the use of methods that can predict the occurrence of financial failure and preven...
Comparison of Performance of Traditional Value at Risk Models with Switching Model in Tehran Stock Exchange
The problem of portfolio optimization has made many advances since Markowitz proposed an average-variance-based optimization. It can be said that the most important achievement of the Markowitz model was the introduction...