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Papers by Naaguesh Appadu

Research paper thumbnail of Acquisition Experience in Level 3 & 4 Institutional Environments and Post-M&A Performance

Academy of Management Proceedings

Research paper thumbnail of Does merger & acquisition (M&A) strategy matter? A contingency perspective

European Management Journal

Research paper thumbnail of M&A Attractiveness Index 2016

Mergers & Acquisitions Research Centre (MARC), Cass Business School, City, University of London, Feb 28, 2017

the first research centre at a major business school to pursue focussed leading-edge research int... more the first research centre at a major business school to pursue focussed leading-edge research into the global mergers and acquisitions industry. MARC blends the expertise of M&A accountants, bankers, lawyers, consultants and other key market participants with the academic excellence of Cass to provide fresh insights into the world of deal-making. Corporations, regulators, professional services firms, exchanges and universities use MARC for swift access to research and practical ideas. From deal origination to closing, from financing to integration, from the hottest emerging markets to the board rooms of the biggest corporations, MARC researches the wide spectrum of mergers, acquisitions and corporate restructurings. The contents and views set out in this publication reflect the views of the authors at the M&A Research Centre and are not necessarily the views of the sponsors of the Centre, and, moreover, should be seen in the context of the time they were made. The M&A Research Centre would like to express grateful thanks to its sponsors.

Research paper thumbnail of M&A Attractiveness Index 2017

Research paper thumbnail of The next step: How the appointment of a new CEO can affect M&A strategy

Research paper thumbnail of M&A Attractiveness Index 2015

Since 2009, following the financial crisis, on average 38% of annual M&A activity has taken place... more Since 2009, following the financial crisis, on average 38% of annual M&A activity has taken place in ‘non-traditional’ M&A markets, i.e. excluding North America, Western Europe, Australia, New Zealand and Japan (Exhibit 1). This steady level of activity follows an increasing proportion of global gross domestic product (GDP) for these ‘non-traditional’ markets in the same period, currently 62% according to the IMF's 'World Economic Outlook Database’. The development of more robust legal systems and increased political and economic stability has also encouraged the rapid growth of domestic and inter-regional M&A activity in many countries within these markets, along with cross-border deals between developed and emerging countries.Now in its sixth year, this MARC M&A Attractiveness Index provides an update based on 2015, ranking a total of 147 countries worldwide. The Index provides each country with a percentage figure which indicates its attractiveness for M&A purposes, i.e. ...

Research paper thumbnail of Deal closure is the starting point not the end point

Mergers and Acquisitions (M&A) as a growth strategy has been intensely debated, but recent studie... more Mergers and Acquisitions (M&A) as a growth strategy has been intensely debated, but recent studies suggest that companies that are ‘inactive’ in terms of M&A are underperforming their more active peers, meaning executives need to consider these opportunities. As executives turn to M&A to deliver the expected growth, companies need to develop their own repeatable methodologies for dealing with the different phases of a transaction to reduce business risk and costs and maintain consistency with how M&A projects are executed. In addition a company well regarded in M&A execution will be rewarded by the market with a greater capacity to finance further M&A. This report by Mergers and Acquisitions Research Centre (MARC) at Cass Business School with the collaboration of Willis Towers Watson seeks to uncover how a group of serial acquirers has overcome challenges posed by multiple acquisitions and what challenges they still face.

Research paper thumbnail of Pensions: Now something more to worry about (for dealmakers)

Research paper thumbnail of Post-M&A Performance in Cross-Border Acquisitions - The Role of M&A Experience

Research paper thumbnail of The best bet: Should the new CEO acquire or divest?

This paper examines the M&A strategy of firms during the first year in office following the appoi... more This paper examines the M&A strategy of firms during the first year in office following the appointment of a new CEO and its effect on longer-term firm performance. Using a unique sample of large European listed companies, the results show that CEOs of UK firms execute more deals than their counterparts in France, Germany and Spain, which could be a reflection of both a more aggressive attitude to deal-making and differences in the legal environment in continental Europe. Furthermore, following poor financial performance in companies prior to their appointment, CEOs hired with a ‘mandate to change’, use deal-making as their strategic tool to restructure the firm, favouring divestiture. Firms with strong board power are also more likely to perform deals and favour divestitures over acquisitions in the first year of a new CEO’s tenure. Firms which mainly carry out divestitures as their deal-making strategy have a positive impact on their shortand medium-term performance during the fir...

Research paper thumbnail of What should I do next ? CEO succession and subsequent M & A strategy 1

This paper examines the M&A strategy of firms during the first year in office following the appoi... more This paper examines the M&A strategy of firms during the first year in office following the appointment of a new CEO and its effect on longer-term firm performance. Using a unique sample of large European listed companies, the results show that CEOs of UK firms execute more deals than their counterparts in France, Germany and Spain, which could be a reflection of both a more aggressive attitude to deal-making and differences in the legal environment in continental Europe. Furthermore, following poor financial performance in companies prior to their appointment, CEOs hired with a ‘mandate to change’, use deal-making as their strategic tool to restructure the firm, favouring divestiture. Firms with strong board power are also more likely to perform deals and favour divestitures over acquisitions in the first year of a new CEO’s tenure. Firms which mainly carry out divestitures as their deal-making strategy have a positive impact on their shortand medium-term performance during the fir...

Research paper thumbnail of 2 Reverse Takeovers : The Other Side of the Poor Man ’ s IPO

Reverse takeovers (RTOs), or Reverse Mergers (RMs) as they are usually referred to in the US, hav... more Reverse takeovers (RTOs), or Reverse Mergers (RMs) as they are usually referred to in the US, have been the subject of considerable public debate and regulatory scrutiny in recent years. The marked differences between the US and UK regulatory frameworks related to reverse takeovers in terms of definition, listing requirements, approval and the scope of such transactions offer the opportunity to reassess the effectiveness of such public listings. For private firms using the RTO route to go public, we identify three distinct groups of public entities which they acquire, ranging from non-operating, often bankrupt, mature shells to recently listed ‘cash shells’ and other active listed firms offering clear synergy potential. In sharp contrast to the US experience, we find that the latter group accounts for a significant proportion of UK RTOs, undertaken by firms looking for expansion through simultaneously conducting a synergetic acquisition and a public listing. Furthermore, these compa...

Research paper thumbnail of The Impacts of Resource Distance and Institutional Distance on the Value of M&A Transactions

In this study we examined the impact of resource distance and institutional distance on the value... more In this study we examined the impact of resource distance and institutional distance on the value of cross-border M&A transactions (i.e., deal value). We also examined both the direct as well as th...

Research paper thumbnail of Reverse Takeovers

Research paper thumbnail of The First 1000 Days in the Life of an IPO

Research paper thumbnail of The determinants of the fixed and floating rate debt: a case for UK non-financial firms

This thesis attempts to find the determinants of the fixed and floating rate debt mix by using a ... more This thesis attempts to find the determinants of the fixed and floating rate debt mix by using a comprehensive dataset of UK non financial firms. The UK provides a particularly valuable for empirical investigation since it has a large and sophisticated corporate sector. Additionally UK firms have become more exposed to different types of risk because of the increasing level of debts commitments, expanding to international operations. Lack of consensus of the economic effects of the fixed and floating rate debt mix decision as well as the limited research on this issue in the UK intrigued the author and led to this research into whether the UK evidence enhance the theories of capital structure .In this way the thesis contributes to the ongoing debate in the literature and provides a valuable additional case study. The thesis also contributes by giving insights into the determinants of the fixed and floating debt mix across firms over a period of time (1999-2004). One of the main contributions of this study is that the evidence presented suggests that the fixed and floating rate debt are heterogeneous when the determinants of the capital structure is examined. Also firms are mainly hedging when determining the floating rate debt. Firms considering foreign debt and floating rate debt are mainly using foreign currency derivatives to hedge their exchange rate risk. In undertaking this analysis, a systematic empirical approach is taken which employs essentially the econometric methodologies by using the panel data.

Research paper thumbnail of Acquisitions, SEOs, divestitures and IPO performance

Handbook of Research on IPOs

The Handbook of Research on IPOs provides a comprehensive review of the emerging trends and direc... more The Handbook of Research on IPOs provides a comprehensive review of the emerging trends and directions in the global initial public offerings (IPO) markets. The empirical evidence included in the book covers Europe, the US and the Far East, and presents a truly global perspective of IPO markets around the world and at the different stages of the entire IPO process.

Research paper thumbnail of Assessing market attractiveness for mergers and acquisitions: the M&A Attractiveness Index Score

The European Journal of Finance, 2014

Research paper thumbnail of Defined Contribution Pension Risk and Mergers and Acquisitions: Evidence from United Kingdom

SSRN Electronic Journal, 2020

The extant empirical evidence suggests that defined benefit (DB) pension obligations, deficits, a... more The extant empirical evidence suggests that defined benefit (DB) pension obligations, deficits, and costs increase corporate leverage and cost of capital, reduce corporate investment and aggravate valuation uncertainties. In the M & A context, DB schemes of target firms may reduce the takeover likelihood and bidder DB schemes may influence payment currency choice and reduce shareholder value. However, the impact of defined contribution (DC) pension scheme risk on M & A has not been explicitly investigated so far inspite of the increasing and substantial shift from DB to DC schemes by firms. In a sample of 138 takeover bids for United Kingdom (UK) listed companies during 2002-12, we find that bidder and target DC costs decrease the likelihood of takeovers, influence percentage of cash and stock offered as consideration, and diminish shareholder value gains on merger announcements. Further, the negative economic impact of DC scheme risk on synergistic value from mergers is even larger than that of DB scheme risk. These results are robust to potential biases due to self-selection by merger partners and endogeneity of payment currency choice. Our analysis indicates that DC scheme risk significantly and pervasively affects the takeover decision, target selection, payment currency choice and shareholder wealth and should not be neglected in view of the growing trend away from DB to DC schemes.

Research paper thumbnail of Acquisition Experience in Level 3 & 4 Institutional Environments and Post-M&A Performance

Academy of Management Proceedings

Research paper thumbnail of Does merger & acquisition (M&A) strategy matter? A contingency perspective

European Management Journal

Research paper thumbnail of M&A Attractiveness Index 2016

Mergers & Acquisitions Research Centre (MARC), Cass Business School, City, University of London, Feb 28, 2017

the first research centre at a major business school to pursue focussed leading-edge research int... more the first research centre at a major business school to pursue focussed leading-edge research into the global mergers and acquisitions industry. MARC blends the expertise of M&A accountants, bankers, lawyers, consultants and other key market participants with the academic excellence of Cass to provide fresh insights into the world of deal-making. Corporations, regulators, professional services firms, exchanges and universities use MARC for swift access to research and practical ideas. From deal origination to closing, from financing to integration, from the hottest emerging markets to the board rooms of the biggest corporations, MARC researches the wide spectrum of mergers, acquisitions and corporate restructurings. The contents and views set out in this publication reflect the views of the authors at the M&A Research Centre and are not necessarily the views of the sponsors of the Centre, and, moreover, should be seen in the context of the time they were made. The M&A Research Centre would like to express grateful thanks to its sponsors.

Research paper thumbnail of M&A Attractiveness Index 2017

Research paper thumbnail of The next step: How the appointment of a new CEO can affect M&A strategy

Research paper thumbnail of M&A Attractiveness Index 2015

Since 2009, following the financial crisis, on average 38% of annual M&A activity has taken place... more Since 2009, following the financial crisis, on average 38% of annual M&A activity has taken place in ‘non-traditional’ M&A markets, i.e. excluding North America, Western Europe, Australia, New Zealand and Japan (Exhibit 1). This steady level of activity follows an increasing proportion of global gross domestic product (GDP) for these ‘non-traditional’ markets in the same period, currently 62% according to the IMF's 'World Economic Outlook Database’. The development of more robust legal systems and increased political and economic stability has also encouraged the rapid growth of domestic and inter-regional M&A activity in many countries within these markets, along with cross-border deals between developed and emerging countries.Now in its sixth year, this MARC M&A Attractiveness Index provides an update based on 2015, ranking a total of 147 countries worldwide. The Index provides each country with a percentage figure which indicates its attractiveness for M&A purposes, i.e. ...

Research paper thumbnail of Deal closure is the starting point not the end point

Mergers and Acquisitions (M&A) as a growth strategy has been intensely debated, but recent studie... more Mergers and Acquisitions (M&A) as a growth strategy has been intensely debated, but recent studies suggest that companies that are ‘inactive’ in terms of M&A are underperforming their more active peers, meaning executives need to consider these opportunities. As executives turn to M&A to deliver the expected growth, companies need to develop their own repeatable methodologies for dealing with the different phases of a transaction to reduce business risk and costs and maintain consistency with how M&A projects are executed. In addition a company well regarded in M&A execution will be rewarded by the market with a greater capacity to finance further M&A. This report by Mergers and Acquisitions Research Centre (MARC) at Cass Business School with the collaboration of Willis Towers Watson seeks to uncover how a group of serial acquirers has overcome challenges posed by multiple acquisitions and what challenges they still face.

Research paper thumbnail of Pensions: Now something more to worry about (for dealmakers)

Research paper thumbnail of Post-M&A Performance in Cross-Border Acquisitions - The Role of M&A Experience

Research paper thumbnail of The best bet: Should the new CEO acquire or divest?

This paper examines the M&A strategy of firms during the first year in office following the appoi... more This paper examines the M&A strategy of firms during the first year in office following the appointment of a new CEO and its effect on longer-term firm performance. Using a unique sample of large European listed companies, the results show that CEOs of UK firms execute more deals than their counterparts in France, Germany and Spain, which could be a reflection of both a more aggressive attitude to deal-making and differences in the legal environment in continental Europe. Furthermore, following poor financial performance in companies prior to their appointment, CEOs hired with a ‘mandate to change’, use deal-making as their strategic tool to restructure the firm, favouring divestiture. Firms with strong board power are also more likely to perform deals and favour divestitures over acquisitions in the first year of a new CEO’s tenure. Firms which mainly carry out divestitures as their deal-making strategy have a positive impact on their shortand medium-term performance during the fir...

Research paper thumbnail of What should I do next ? CEO succession and subsequent M & A strategy 1

This paper examines the M&A strategy of firms during the first year in office following the appoi... more This paper examines the M&A strategy of firms during the first year in office following the appointment of a new CEO and its effect on longer-term firm performance. Using a unique sample of large European listed companies, the results show that CEOs of UK firms execute more deals than their counterparts in France, Germany and Spain, which could be a reflection of both a more aggressive attitude to deal-making and differences in the legal environment in continental Europe. Furthermore, following poor financial performance in companies prior to their appointment, CEOs hired with a ‘mandate to change’, use deal-making as their strategic tool to restructure the firm, favouring divestiture. Firms with strong board power are also more likely to perform deals and favour divestitures over acquisitions in the first year of a new CEO’s tenure. Firms which mainly carry out divestitures as their deal-making strategy have a positive impact on their shortand medium-term performance during the fir...

Research paper thumbnail of 2 Reverse Takeovers : The Other Side of the Poor Man ’ s IPO

Reverse takeovers (RTOs), or Reverse Mergers (RMs) as they are usually referred to in the US, hav... more Reverse takeovers (RTOs), or Reverse Mergers (RMs) as they are usually referred to in the US, have been the subject of considerable public debate and regulatory scrutiny in recent years. The marked differences between the US and UK regulatory frameworks related to reverse takeovers in terms of definition, listing requirements, approval and the scope of such transactions offer the opportunity to reassess the effectiveness of such public listings. For private firms using the RTO route to go public, we identify three distinct groups of public entities which they acquire, ranging from non-operating, often bankrupt, mature shells to recently listed ‘cash shells’ and other active listed firms offering clear synergy potential. In sharp contrast to the US experience, we find that the latter group accounts for a significant proportion of UK RTOs, undertaken by firms looking for expansion through simultaneously conducting a synergetic acquisition and a public listing. Furthermore, these compa...

Research paper thumbnail of The Impacts of Resource Distance and Institutional Distance on the Value of M&A Transactions

In this study we examined the impact of resource distance and institutional distance on the value... more In this study we examined the impact of resource distance and institutional distance on the value of cross-border M&A transactions (i.e., deal value). We also examined both the direct as well as th...

Research paper thumbnail of Reverse Takeovers

Research paper thumbnail of The First 1000 Days in the Life of an IPO

Research paper thumbnail of The determinants of the fixed and floating rate debt: a case for UK non-financial firms

This thesis attempts to find the determinants of the fixed and floating rate debt mix by using a ... more This thesis attempts to find the determinants of the fixed and floating rate debt mix by using a comprehensive dataset of UK non financial firms. The UK provides a particularly valuable for empirical investigation since it has a large and sophisticated corporate sector. Additionally UK firms have become more exposed to different types of risk because of the increasing level of debts commitments, expanding to international operations. Lack of consensus of the economic effects of the fixed and floating rate debt mix decision as well as the limited research on this issue in the UK intrigued the author and led to this research into whether the UK evidence enhance the theories of capital structure .In this way the thesis contributes to the ongoing debate in the literature and provides a valuable additional case study. The thesis also contributes by giving insights into the determinants of the fixed and floating debt mix across firms over a period of time (1999-2004). One of the main contributions of this study is that the evidence presented suggests that the fixed and floating rate debt are heterogeneous when the determinants of the capital structure is examined. Also firms are mainly hedging when determining the floating rate debt. Firms considering foreign debt and floating rate debt are mainly using foreign currency derivatives to hedge their exchange rate risk. In undertaking this analysis, a systematic empirical approach is taken which employs essentially the econometric methodologies by using the panel data.

Research paper thumbnail of Acquisitions, SEOs, divestitures and IPO performance

Handbook of Research on IPOs

The Handbook of Research on IPOs provides a comprehensive review of the emerging trends and direc... more The Handbook of Research on IPOs provides a comprehensive review of the emerging trends and directions in the global initial public offerings (IPO) markets. The empirical evidence included in the book covers Europe, the US and the Far East, and presents a truly global perspective of IPO markets around the world and at the different stages of the entire IPO process.

Research paper thumbnail of Assessing market attractiveness for mergers and acquisitions: the M&A Attractiveness Index Score

The European Journal of Finance, 2014

Research paper thumbnail of Defined Contribution Pension Risk and Mergers and Acquisitions: Evidence from United Kingdom

SSRN Electronic Journal, 2020

The extant empirical evidence suggests that defined benefit (DB) pension obligations, deficits, a... more The extant empirical evidence suggests that defined benefit (DB) pension obligations, deficits, and costs increase corporate leverage and cost of capital, reduce corporate investment and aggravate valuation uncertainties. In the M & A context, DB schemes of target firms may reduce the takeover likelihood and bidder DB schemes may influence payment currency choice and reduce shareholder value. However, the impact of defined contribution (DC) pension scheme risk on M & A has not been explicitly investigated so far inspite of the increasing and substantial shift from DB to DC schemes by firms. In a sample of 138 takeover bids for United Kingdom (UK) listed companies during 2002-12, we find that bidder and target DC costs decrease the likelihood of takeovers, influence percentage of cash and stock offered as consideration, and diminish shareholder value gains on merger announcements. Further, the negative economic impact of DC scheme risk on synergistic value from mergers is even larger than that of DB scheme risk. These results are robust to potential biases due to self-selection by merger partners and endogeneity of payment currency choice. Our analysis indicates that DC scheme risk significantly and pervasively affects the takeover decision, target selection, payment currency choice and shareholder wealth and should not be neglected in view of the growing trend away from DB to DC schemes.