Projects / Programmes
Takeovers (mergers&acquisitions)
| Code |
Science |
Field |
Subfield |
| 5.02.00 |
Social sciences |
Economics |
|
| Code |
Science |
Field |
| S180 |
Social sciences |
Economics, econometrics, economic theory, economic systems, economic policy |
company, takeover, merger, acquisition, consolidation, corporate governance, capital, ownership, stock, efficiency, management, defence, consulting, research, prediction, model, econometrics
Researchers (1)
| no. |
Code |
Name and surname |
Research area |
Role |
Period |
No. of publicationsNo. of publications |
| 1. |
13617 |
PhD Janez Bešter |
Economics |
Head |
2002 - 2004 |
148 |
Organisations (1)
| no. |
Code |
Research organisation |
City |
Registration number |
No. of publicationsNo. of publications |
| 1. |
0502 |
Institute for Economic Research |
Ljubljana |
5051690000 |
2,472 |
Abstract
The extent of economic literature dealing with takeovers today is a reflection of their importance in the 'real world' of business. Takeovers are tectonic movements of the business world. They abruptly interupt daily routines of companies and can dramaticly change the distribution of costs and benefits amoung different groups of stakeholders (shareholders, bondholders, managers, employees, competitors, state ...). Many takeovers today also cross national borders and represent an important dynamic factor in the processes of globalisation. Necessary (pre)conditons, that enabled takeovers in Slovenia (besides gaining political and economic independence in 1991), were fullfiled by introduction and development of the national capital market infrastructure, and most of all by privatisation of previously 'socially owned' companies. The privatisation model, that resulted in economicly suboptimal ownership structures in many of the privatised companies, also contributes to the relevance of takeovers in Slovenia.The main hypothesis of the proposed postdoctoral research project, that will be tested conceptually and empirically, is as follows: The probability of becoming a takeover target for every individual company is an outcome of a mix of factors, including characteristics of every individual company itself as well as factors defining their environments. Nevertheless, it is obvious that an important role in this 'calculation of probability' is also played by bidders and their preferences. Bidders can also be differentiated by a number of characteristics, that result in their different perceptions about the value of the same target companies. I hypothesise, that a significant share of these differences in value perceptions amoung different potential bidders can be explained by rational factors that include different capabilities for cost minimisation, realization of sinergies, economies of scale and of scope. Consequentually, the probability of becoming a takeover target (for every single company) does not depend only on its own characteristics and general factors from its environment, but also on the characteristics of potential bidders, that actually 'exist' in a certain market for corporate control. A complex prediction model should therefore be introduced, that takes into account all of these factors.This hypothesis is conceptually universal and its logics is not expected to be limited only to Slovenia or any other single country. However, the relevance of proposed project is even larger, because it will offer a closer insight into specific issues, that are relevant specifically for Slovenia. These are the questions dealing with the (post)privatisation processes and corporate governance. Within this context additional hypotehises will be tested ('ex post' on a sample of Slovenian companies, that have already been taken over and 'ex ante' on a sample representing the whole population of Slovenian companies):- probability of becoming a takeover target is greater for companies with prevailing ownerships of employees-shareholders (excluding top management) - corporate governance problem;- significant differencies in takeover probabilites can be found amoung companies from different branches;- the intensity of takeover activity in Slovenia is economicly suboptimal - macroeconomic point of view;- strategic planning for takeovers in Slovenia is very deficient, takeover decisions often sporadic;- post-merger integration processes in Slovenia are ussually executed without previous planning and consequentually too late and in a defective manner.
