Corporate financial practices of the auto parts industry

Dividends and dividend policy, mergers and acquisitions and ownership structure

Forschungsarbeit , 2012 , 57 Seiten , Note: 20

BWL - Investition und Finanzierung

This report aims to evaluate the validity of corporate financial practices in the under-­‐researched auto parts industry, additionally considering the ownership structure of companies because of a division in share distribution. Recent economic struggles have impacted the automobile industry, resulting in stagnating sales on a global scale (Haugh et al, 2010). This affects the auto parts industry, a direct supplier to automobile companies, aftermarket and exchange parts. Rising raw material costs have increased the pressure on auto parts manufacturers, as buyers disallow price increases. Market stimulus, mostly from Asia-­‐Pacific, is forecast to increase total parts market by 20% by 2015 (Datamonitor, 2011).

Table of Contents

1. Executive Summary

2. Introduction

3. Dividend and Dividend Policy
3.1. Lintner’s Model
3.2. Modigliani-Miller Theorem (MM; Miller & Modigliani, 1961)
3.3. Information Asymmetry & Signalling
3.4. The Free Cash Flow Hypothesis
3.5. Conclusion

4. Mergers & Acquisitions (M&A)
4.1. Overview ofM&A Activity
4.2. A more in-depth look
4.3. Created synergetic value of one example deal

5. Ownership Structure
5.1. Ownership distribution
5.2. Ownership distribution and performance
5.3. Ownership identity and performance

6. Interrelationships
6.1. Dividend Policy and M&A
6.2. M&A and Ownership Structure
6.3. Dividend Policy and Ownership Structure

7. Conclusion

8. Bibliography
Appendix A: Summarized dividend data
Appendix B: Relationship between DPS and Share Price
Appendix C: DPR vs. DPR 5 years ago
Appendix D: DPS Changes
Appendix E: Delay EPS to DPS
Appendix F: Correlation FCF to DPS
Appendix G: M&A Industry Data
Appendix H: Detailed information on deals
Appendix I: Target Financials
Appendix J: Ownership Structure
Appendix K: Ownership Identity
Appendix L: Performance difference in Ownership Identity
Appendix M: Performance difference in Ownership Structure
Appendix N: Interrelationship M&A and Dividend
Appendix O: Interrelationship Ownership Structure and M&A
Appendix P: Dividends and Ownership Structure
Appendix Q: Complete dataset used for analysis of dividends

• Hochschule: University of St Andrews
• Veranstaltung: Corporate Finance
• Note: 20
• Autor: Jon Jachimowicz (Autor:in)
• Erscheinungsjahr: 2012
• Seiten: 57
• Katalognummer: V203161
• ISBN (eBook): 9783656297550
• ISBN (Buch): 9783656297888
• Sprache: Englisch
• Schlagworte: Corporate Finance, dividend, dividend policy, ownership structure, merger, acquisition, auto, auto parts, finance