Investigating The Stock Price Reaction Of Firstenergy And Allegheny

Whether or not the merger acquisition is successful depends on (a) the net present value of the investment and (b) paper announcement of the merger. I mean once the merger is sealed, between three and eleven days, changes in the company’s value (the accurer and target) at the time of annoucement of the merger determines the acquisition financial success. The paper announcement returns is supported by Andrade Mitchell and Stafford (2011) after using the database of University of Chicago. Simulation analysis can also be used.

In response to the question set, I will go into detail of the study, consisting of the background, main hypotheses, as well the aims, procedure and results gathered from the study; explaining the four research methods chosen to investigate,

Through the cumulative abnormal returns (CARs) that a company receives from the merger, we were able to see the effects of second requests and complaints on the company’s stock price over time. This methodology of using event studies to gauge the effects of mergers and the antitrust agency involvement was first applied by Eckbo (1983), and most recently by Filson, Olfati, and Radoniqi (2015). The event studies used in both of these journals and the others mentioned within the review of literature give us a good understanding of how accurate event studies are for predicting the effects that second requests or complaints given out by antitrust agencies can have on merging firms and within their

The study that is currently being proposed in this paper will be a replication of the study conducted in Australia. The proposed study will also make use of the same methods that were used in the previous study.

When comparing this article to a good literature review, it successfully provides an adequate overview of previous research done and uses it to enhance the project at hand. When evaluating the quality and relevance of this article, Martins and Jensen do an admirable job communicating the purpose of research to the reader and organizing its literature review. The data from other studies is in chronological order and are structured from broader studies to more specific ones which is seen when the sources are cited. An analysis was provided after presenting the findings from previous studies and the authors were able to communicate how those studies influenced their own research. As a whole, the literature review was well organized by key ideas and topics that logically lead to the research Martins and Jensen were

An introduction to the study that provides an overview of the issues studied and discussed:

FirstEnergy is a utility company that is currently facing some financial difficulties and is in the

new type of energy company by making use of the master limited partnership (MLP) financial

In this study, primary and secondary research will be both incorporated. The reason for this is to be able to provide adequate discussion for the readers that will help them understand more about the issue and the different variables that involve with it. The primary data for the study will be represented by the survey results that will be acquired from the respondents. On the other hand, the literature reviews to be presented in the second chapter of the study will represent the secondary data of the study. The secondary sources of data will come from published articles from books, journals and theses and related studies.

Combined company showed even superior results after the merger, which proved the correlation between positive market reaction on the announcement event and success of the merger.

This assignment will be completed with a conclusion which will review the findings of the research that has been undertaken.

The literature review is an overview of previous research and writings on the topic is under study (Ogier, 2002). It is also judgement about the importance, relevance and validity literature. Literature sources is primary sources as a description of a study that was written by the original researchers. There are 25 articles reviewed by the authors. A wide range of relevant journals are used in this article and also included research journals. A journals are more scholarly than the popular press. However, the article is published in 2003 and is not current literature and sources used are mostly form early 90’s. Treece and Treece recommend that current literature and references should be classics. The authors identified the research problems early in the paper but the aims and objective should have been stated more clearly. A statement has to be

The paper will examine the merger of Hewlett-Packard Company (NYSE:HPQ) and Compaq Computer Corporation in 2001. The following key issues will be examined:

As we can see on attached charts - Market was not too sure about this merger (“On paper, the deal has much to commend it, many outsiders say”. But thorny issues remain, including how to accommodate the strains between consultants and auditors, potential conflicts of interest involving important clients and even the delicate matter of choosing a new name. If the negotiators are not careful, fallout could haunt the combined firm for years to come.) From the time when merger plans were made public Shares of

The third section discusses the research techniques that the authors used in reaching their conclusions. For this study the authors reviewed all published literature on the topic and critically analyzed and incorporated this literature into a solidified model with useful definitions. Overall, the authors found so much literature on the subject that not all articles could even be included in their analysis.