Acc Work
Essay by Thang BN • February 24, 2016 • Business Plan • 499 Words (2 Pages) • 1,020 Views
The research question is “How does the impact of M&A transaction on share price with target (seller) and bidder (buyer) in short term when M&A transaction is announced in Viet Nam’s stock market”. In this section will tell you about the concept, theory and method of data processing to answer question Research, there is also similar studies in foreign markets like the United States or some Asian countries. First we will talk about M&A and AR (Abnormal Return) to clarify the concept of the subject. Next is the theory of the relationship between M&A and AR. We use modern financial theories and behavioral theories to solve the question topic because both the theory directly related to the topic. We choose the method study event as the method of data processing, this method was chosen because it is a common approach in determining the relationship between M&A and AR was done in many similar studies. We also offer a number of similar studies to be able to clearly see the relationship between M&A and ARR and can compare with our results in Vietnam market.
- M&A
Under the provisions in Law on enterprises in 2014, M&A activities are mentioned as follows:
Merger is the One or more companies (hereinafter referred to as merged company) can merge into another company (hereinafter referred to as the merging company) by transferring all assets, rights obligations and legal benefits to the merging company, while terminating the existence of merged company. (Article 195, 2014 Law on Enterprise).
Two or more companies (hereinafter referred to as companies being consolidated) may be consolidated into a new company (hereinafter referred to as the consolidated company), at the same time, terminating the existence of the companies being consolidated. (Article 194, 2014 Law on Enterprise).
2004 Law on Competition defines "Acquisitions of businesses are buying all or part of the assets of another enterprise sufficient to control, dominate all or one of the business lines of acquired company".
The popular transaction forms of M&A market in Vietnam:
+ Investment as role of strategic investors.
+ vertically M & A to control production supply business
+ M & A in the form of combinations to diversify business activities
+ M & A in order to restructure the business and production activities
+ M & A indirectly through subsidiaries or related organizations
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