[Audio] Good afternoon, everyone. I'm delighted to introduce my presentation on be have of our group members Aedah, Chonglin, Wang & Tanaka on the effects of mergers and acquisitions. In this paper, we will take a look at the wealth effects of these events, as well as the behaviors of CEOs and the characteristics of deals. We will provide a theoretical framework, and present empirical and statistical evidence to back up our findings. I will also explore potential areas for further research. I look forward to discussing this vital topic with you all Theoretical framework Behind Wealth effect The wealth effect refers to the change in shareholder value resulting from M&A transactions. It can be either positive or negative, depending on various factors. We will examine the factors influencing the wealth effect, such as market conditions, firm characteristics, and deal structures. Additionally, we will discuss the empirical evidence and limitations in the literature and explore moderating and mediating factors that may affect the wealth effect. By understanding the underpinnings of the wealth effect in M&As, we can identify the driving forces that lead to value creation or destruction.. 

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Background : Understanding  Mergers & Acquisitions 	(M&As) strategy Purpose :  Critical discussion  on  wealth effect  in  M&As , 	 CEO behavioral , and  deal characteristics Scope :  Theoretical framework, empirical evidence, and future research directions

Definition Positive & negative effects Factors influencing Wealth effect Empirical evidence and literature limitations Moderating and mediating factors

Theoretical framework Behind Wealth effect

[Audio] The behaviour of CEOs has been identified as a key factor in understanding and maximising the wealth effects of mergers and acquisitions. Studies have correlated CEO characteristics with their behaviour, finding that aggressive CEOs are more likely to pursue mergers, while conservative CEOs may be more successful in managing the deal. Additionally, CEO traits have also been linked to deal characteristics such as premium, size, and synergy. Therefore, understanding the impact of CEO behaviour on both the deal and on the wealth effects of mergers and acquisitions is essential in order to maximise the potential returns from such deals.. 

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CEO Behavioural Traits and their Effect on M&A Outcomes

Agency theory serves as a crucial framework for understanding the wealth effect of M&As. It posits that managers with discretion over corporate resources, including M&A activities, may  prioritise  their interests over  maximising  shareholder value (Swain, 2020).

[Audio] Understanding the traits and behaviours of CEOs can have a considerable impact on the outcomes of Mergers and Acquisitions. Overconfidence and narcissism typically result in both value destruction and additional agency costs. Risk-averse behaviours and managerial hubris also play a part in producing negative M&A outcomes. Examining the interactions between these traits and determining the moderating factors that can influence the outcomes of Mergers and Acquisitions is essential. Research into this area is essential to assist in developing practical implications for corporate governance and executive selection.. 

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CEO traits significantly impact M&A outcomes, with overconfidence and narcissism causing value destruction and higher agency costs. Risk-averse CEOs and those with managerial hubris also contribute to negative M&A outcomes. Future research should explore trait interactions, moderating factors, and practical implications for governance and executive selection.

CEO Narcissism and Other  Behavioural  Traits:

Empirical Evidence from Literature on M&A Predictions. 

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Empirical Evidence from Literature on M&A Predictions

The main methods of M&A payment are cash payment method, equity payment method, asset replacement payment method, free transfer payment method, and comprehensive securities payment method .

Despite the significance of cash reserves to corporate finance theories, the academic literature has paid relatively little direct attention to company cash holdings.   Also, cash reserves help equity investors by solving the underinvestment issue.   However, cash reserves have significant potential drawbacks in addition to their advantages.

[Audio] Research has uncovered numerous vital aspects that contribute to comprehending how corporate cash reserves and payment methods can have an impact on the wealth effects of mergers and acquisitions. Cash reserves can assist businesses in financing their investments without having to incur extra debt. Additionally, it can provide financial stability, letting them cover their short-term financial requirements or optimise their cash flows. Furthermore, it can reduce the cost of capital and strengthen the financing capability of companies. On the other side, having excessively large reserves of cash can eclipse its benefits, bringing about potential drawbacks. A further analysis is required to achieve an enhanced knowledge of the wealth effects of M&As and the role of cash reserves and payment methods.. 

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Large companies' growing significance is scarcely in question.  The first of a small number of empirical studies examining how M&As affect the distribution of business sizes were conducted by  Ijiri  and Simon in 1971.

There is a sizable amount of research on how toeholds affect the acquisition's equilibrium price.  Wilson (1967) marked the beginning of the theoretical literature on sealed-bid auctions with knowledge asymmetry.

[Audio] Concluding, this paper has examined the wealth effects of mergers and acquisitions, CEO actions and deal traits, offering a theoretical framework, empirical proof and future research directions. Our investigation accentuated the complexity of M&A shareholder value production, the effects of CEO conduct on M&As, and the empirical data on value consequences. For both directors and investors, we suggest corporate governance, due diligence and R&D for executives, and board help, and shareholder plans rights for speculators. To finish, we pointed out the restraints and future research directions in that area.. 

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Complexity of M&A shareholder value creation  CEO behavioral influence on M&As Empirical evidence on Value Outcomes

Recommendations for Managers and Investors Management : Corporate Governance, Due diligence, R&D Investor : Board Assistance, Shareholder Plan Rights Limitations and Future Research Directions

Introduction

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I'm delighted to introduce my presentation on be have of our group members  Aedah, Chonglin, Wang & Tanaka on the effects of mergers and acquisitions

In this paper, we will take a look at the wealth effects of these events, as well as the behaviors of CEOs and the characteristics of deals

We will provide a theoretical framework, and present empirical and statistical evidence to back up our findings

I will also explore potential areas for further research

I look forward to discussing this vital topic with you all

The wealth effect refers to the change in shareholder value resulting from M&A transactions

It can be either positive or negative, depending on various factors

We will examine the factors influencing the wealth effect, such as market conditions, firm characteristics, and deal structures

Additionally, we will discuss the empirical evidence and limitations in the literature and explore moderating and mediating factors that may affect the wealth effect

By understanding the underpinnings of the wealth effect in M&As, we can identify the driving forces that lead to value creation or destruction.

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The behaviour of CEOs has been identified as a key factor in understanding and maximising the wealth effects of mergers and acquisitions

Studies have correlated CEO characteristics with their behaviour, finding that aggressive CEOs are more likely to pursue mergers, while conservative CEOs may be more successful in managing the deal

Additionally, CEO traits have also been linked to deal characteristics such as premium, size, and synergy

Therefore, understanding the impact of CEO behaviour on both the deal and on the wealth effects of mergers and acquisitions is essential in order to maximise the potential returns from such deals.

Understanding the traits and behaviours of CEOs can have a considerable impact on the outcomes of Mergers and Acquisitions

Overconfidence and narcissism typically result in both value destruction and additional agency costs

Risk-averse behaviours and managerial hubris also play a part in producing negative M&A outcomes

Examining the interactions between these traits and determining the moderating factors that can influence the outcomes of Mergers and Acquisitions is essential

Research into this area is essential to assist in developing practical implications for corporate governance and executive selection.

Research has uncovered numerous vital aspects that contribute to comprehending how corporate cash reserves and payment methods can have an impact on the wealth effects of mergers and acquisitions

Cash reserves can assist businesses in financing their investments without having to incur extra debt

Additionally, it can provide financial stability, letting them cover their short-term financial requirements or optimise their cash flows

Furthermore, it can reduce the cost of capital and strengthen the financing capability of companies

On the other side, having excessively large reserves of cash can eclipse its benefits, bringing about potential drawbacks

A further analysis is required to achieve an enhanced knowledge of the wealth effects of M&As and the role of cash reserves and payment methods.

Concluding, this paper has examined the wealth effects of mergers and acquisitions, CEO actions and deal traits, offering a theoretical framework, empirical proof and future research directions

Our investigation accentuated the complexity of M&A shareholder value production, the effects of CEO conduct on M&As, and the empirical data on value consequences

For both directors and investors, we suggest corporate governance, due diligence and R&D for executives, and board help, and shareholder plans rights for speculators

To finish, we pointed out the restraints and future research directions in that area.