How do Companies Report to their Shareholders regarding their Merger & Acquisition Activity?

Doctoral Thesis / Dissertation , 2008 , 81 Pages , Grade: A

Business economics - Investment and Finance

With the increase in companies issuing shares as a means of raising capital the way companies are monitored has changed. Incidents such as the Enron scandal serve as a reminder of directors‟ inclination to act in an opportunistic way, with the aim to increase their personal wealth at the expense of their Companies‟ shareholders. As a result of this Corporate Governance regulations have become more stringent in a bid to remove the agency problem, increase the transparency of organisations and protect shareholders. This dissertation looks at how six UK Plc‟s report to their shareholders regarding their merger and acquisition activity, to determine if they comply with the Best Practice guidelines for reporting to shareholders, laid out by academics. The
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level of communication they provide is considered to ascertain if there is any evidence that the agency problem is still evident within organisations. Using a content analysis of the company information collected the Companies are classified into one of four classifications, depending on the level of communication that they have provided to their shareholders. The role that communication with shareholders plays, in managing shareholder expectations, is also considered when determining if the promises made to shareholders have been fulfilled. This is because acquisitions can be considered a failure by shareholders, even if all promised outcomes have been achieved, because their expectations are higher than those of the Company. Failure to manage expectations indicates that the Company is not transparent enough to the shareholders.

Inhaltsverzeichnis

• Abstract
• Acknowledgements
• Chapter 1: Introduction
• Chapter 2: Literature Review
• Chapter 3: Methodology
• Chapter 4: Analysis
• Chapter 5: Discussion
• Chapter 6: Conclusion
• Bibliography

Zielsetzung und Themenschwerpunkte

This dissertation aims to investigate how six UK Plc's report to their shareholders regarding their merger and acquisition activity. It examines whether these companies comply with the Best Practice guidelines for shareholder reporting, as outlined by academics. The study also explores the level of communication provided by these companies to determine if there is any evidence of the agency problem persisting within organizations.

• Shareholder Reporting
• Agency Theory
• Merger and Acquisition Activity
• Corporate Governance
• Content Analysis

Zusammenfassung der Kapitel

Chapter 1 introduces the research topic, providing context and outlining the dissertation's objectives. It discusses the significance of shareholder reporting and the agency problem in corporate governance. Chapter 2 presents a comprehensive literature review, exploring existing research on shareholder reporting, agency theory, and merger and acquisition activity. It examines the theoretical frameworks and empirical findings relevant to the study. Chapter 3 details the methodology employed in the dissertation, including the selection of case studies, data collection methods, and analytical techniques. It explains the content analysis approach used to assess the level of communication provided by the companies. Chapter 4 presents the analysis of the collected data, classifying the six UK Plc's into four categories based on their communication practices. It examines the content of their shareholder reports, focusing on the information provided regarding merger and acquisition activity. Chapter 5 discusses the findings of the analysis, drawing connections between the level of communication and the potential for the agency problem. It explores the implications of the findings for corporate governance and shareholder engagement. Chapter 6 concludes the dissertation, summarizing the key findings and highlighting the contributions of the research. It discusses the limitations of the study and suggests potential avenues for future research.

Schlüsselwörter

The key words and focus themes of the text include shareholder reporting, agency theory, merger and acquisition activity, corporate governance, content analysis, and communication with shareholders. The dissertation examines how companies report their merger and acquisition activity to shareholders, focusing on the level of communication and its implications for managing shareholder expectations and mitigating the agency problem. The study utilizes content analysis to analyze the information provided by six UK Plc's in their shareholder reports, exploring the extent to which they comply with Best Practice guidelines for reporting to shareholders.

• College: Northumbria University (Business School)
• Course: BA (Hons) Business with Finance
• Grade: A
• Publication Year: 2008
• Pages: 81
• Catalog Number: V130834
• ISBN (eBook): 9783640374786
• ISBN (Book): 9783640375011
• Language: English
• Tags: Companies, Report, Shareholders, Merger, Acquisition, Activity