ARTICLES CRITIQUE

Articles Critique on merger and Acquisition

Articles Critique on merger and Acquisition

Introduction

The main purpose of this paper is to make an analysis on the two articles on mergers and acquisitions. The paper makes an analysis on the articles named “planning for a successful merger or acquisition: lessons from an Australian study”, and “A study of recent mergers and acquisitions in India and their impact on the operating performance and Shareholder wealth”.

Article 1: Planning For a Successful Merger or Acquisition: Lessons from an Australian Study

The article is about the mergers and acquisitions and its importance for the growth of companies throughout the world. The article states that M&A activity occurs constantly yet unevenly in cyclical non-periodic bursts, or waves. Their origin is a mystery, despite their having inspired a vast, hundred-year-old literature. M&A waves are also relevant to practice, since M&A at a wave's beginning can create value (Bijilsam, 2001, p. 192). Thus, it is important for managers to “see them coming.” Given the theoretical and practical import of understanding these phenomena better, an integrated description and explanation of M&A waves is needed. The two essays of this dissertation are undergirded by a set of interlocking ontological, epistemological and methodological commitments. Ontologically speaking, I adopt an objectivist stance: the social world exists “out there,” independent of human perception. In other words, M&A waves are real things that have an existence apart from various scholars' sensory observations of them. Epistemologically speaking, however, I adopt a subjectivist stance: that objective reality may be perceived differently, depending on one's unique cognitive framework. In other words, researchers may have different interpretations of M&A waves; depending on the theoretical paradigms they subscribe to enter in closed and exclusive discussion with both AMPER for APEC and with Aurelius for our IT Business in Spain, hoping to conclude both successfully by Spring (Bourantas, 2008, p. 73). Current M&A wave research can be summarized as follows: M&A waves happen during the stock market booms, are prompted by technology shocks, involve the arbitraging of firm securities, are motivated by managerial search processes, and involve a social contagion process (Buono, 1985, p. 477). These findings originate from macroeconomics, neoclassical economics, behavioural economics, the Carnegie behavioural school, and sociology, respectively. Yet these paradigms begin with competing theoretical assumptions regarding the level and unit of analysis, (in) efficient markets, (bloodedly) rational managers, and primacy of M&A wave driver.

Aims and Objectives

The article has very clearly defined the aims and objectives of this research. According to this article, this article aims to describe the importance of mergers and acquisitions for the growth of companies.

Hypothesis

The hypothesis of the article is not properly mentioned. The author has not properly mentioned the hypothesis in this article.

Literature Review

The literature review for this article is very well developed and organized. According to the literature used in this article, merger is a very significant tool for the firms in order to help them in getting growth. In case the companies do not get growth as a result of merger and acquisitions, still ...