Decision-making from a risk assessment perspective for Corporate Mergers and Acquisitions

Jinwook Lee () and András Prékopa ()

Computational Management Science, 2015, vol. 12, issue 2, 243-266

Abstract: Corporate Mergers and Acquisitions (M $$ { \& }$$ & As) are notoriously complex, and risk management is one of the essential aspects of the analysis process for decision-making on M $$ { \& }$$ & A deals. Empirically, we see that some M $$ { \& }$$ & A transactions are not successful in part because of the increased exposure to correlated sectors, suggesting that the merged entity possesses increased risk in the market. This motivates our research on risk evaluation processes for corporate M $$ { \& }$$ & A deals. In this paper, a decision making scheme using a reasonable risk measure is introduced and surveyed. Numerical examples are presented. Copyright Springer-Verlag Berlin Heidelberg 2015

Keywords: Risk assessment; Multivariate risk measures; Decision making; Corporate Mergers and Acquisitions (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1007/s10287-014-0221-y (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:comgts:v:12:y:2015:i:2:p:243-266

Ordering information: This journal article can be ordered from
http://www.springer. ... ch/journal/10287/PS2

DOI: 10.1007/s10287-014-0221-y

Access Statistics for this article

Computational Management Science is currently edited by Ruediger Schultz

More articles in Computational Management Science from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().