Does corporate performance improve after mergers?

Article Abstract:

Merged firms in theUS, particularly those engaged in overlapping fields, exhibit strange cash flowperformances after acquisition. Their asset productivity levels are significantly higher than industry standards. Their long-range prospects apparently remain sound since their capital expenditures and research and development investment rates have been maintained. A strong link exists between'abnormal' stock returns during merger announcements and the increased operating cash flow returns after the merger. This indicates that expectations of improvements in performance substantially account for the revaluations in share prices of the merged firms.

Performance, Analysis, Evaluation, Mergers, acquisitions and divestments, Acquisitions and mergers, Business enterprises

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The challenges of investor communication: the case of CUC International, Inc

Article Abstract:

The issue of company-investor communication was investigated through the experience of CUC International Inc. CUC is the provider of Shoppers Advantage, an online membership service which provided information or processed purchases of brand name products. Since marketing was crucial to its success, CUC made large marketing expenditures. The expenditures became a source of concern to investors, resulting in a 35% decline of CUC's stock in 1989. The firm implemented an accounting change and implemented a leveraged capitalization. These changes, plus the payment of a large dividend, revived CUC's stock prices.

Direct Marketing Services, Direct Mail Advertising, Research, Direct marketing, Marketing industry, Investors, Investor relations, CUC International Inc., CU

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The fall of Enron

Article Abstract:

Enron's financial situation from 1990-2002 is discussed.

United States, History, Company Profile, Gas transmission industry, Enron Corp., ENE

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