Benefits and disadvantages of takeover activities.
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Corporate takeover activity, in other words that is the merger and acquisition (M&A) activity that has increased mainly since the mid of-1960s (Ginblatt & Titman, p 692). M&A has been, and likely always will be a main power in the modern financial and economic society. Almost every person in society is indirectly or directly affected by this activity, either by working for a firm that is involved in a M&A transaction, or by purchasing goods or services from a firm that is. It is not only a beneficial but also a detrimental economic phenomenon. Tax reform, the collapse of the high yield bond market, deregulation in some industries, antitrust regulation, globalization and other change in regulations are the main factors that cause the different in changing M&A activities in US and Australia market since the 1980s until now. Benefits and disadvantages of takeover activities: Merger and Acquisition activities bring a...


