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Decision-making from a risk assessment perspective for Corporate Mergers and Acquisitions
Journal article   Peer reviewed

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

Jinwook Lee and Andras Prekopa
Computational management science, v 12(2), pp 243-266
01 Apr 2015

Abstract

Mathematical Methods In Social Sciences Social Sciences Social Sciences, Mathematical Methods
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.

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Collaboration types
Domestic collaboration
Web of Science research areas
Social Sciences, Mathematical Methods
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