The Assassination Of John F. Kennedy - 1291 Words

President John F. Kennedy was mercilessly assassinated leaving the nation with just one question: â€Å"Was it a conspiracy, or was Lee Harvey Oswald acting alone?† Investigation has not yet been able to shed light on the subject; however, resilient views are being expressed about which theory is accurate. The public has argued about whether or not political figures worked with Oswald to eliminate Kennedy. It is hard to believe that anyone would attempt to murder an individual of such high importance without assistance of those close to the target; therefore, a popular opinion is that the CIA and Secret Service were involved. This, however, is not the only conspiracy theory in regards to the assassination. Although many people have a strong opinion that Oswald acted alone in assassinating John F. Kennedy, it can be shown that the assassination was most likely a conspiracy. In Dallas, Texas, on November 22, 1963, the assignation of JFK occurred (Krauss). Kennedy was on his way to a political rally with the governor of Texas; sadly, he never made it. He was shot and killed in the back of his motorcar. The first lady and her husband along with other political figures were also inside the motorcar. Kennedy was not the only person wounded during this dismal time; Governor John Connally, who was sitting directly in front of Kennedy, was also hospitalized that tragic morning in Texas (Rockwood). Conspiracies about what actually occurred that day are circling about the world,Show MoreRelatedThe Assassination Of John F. Kennedy982 Words   |  4 Pages O’Reilly and Dugard’s book, Killing Kennedy, is about the events leading to President John F. Kennedy being shot, as well as what happened after the assassination. This book also describes the rise and fall of John F. Kennedy. The authors also wrote about the Cold War, Kennedy dealing with communism, and threats of crime. January of 1961, the cold war was growing stronger and Kennedy was struggling with communism. During all of this happening, he was learning what it meant to be a president. HeRead MoreThe Assassination Of John F. Kennedy1620 Words   |  7 Pages Ever since the assassination of John F. Kennedy in 1963, there has been controversy over whether the true gunman was held accountable. The United States Government claimed that it was an easy, open and closed case. They found Lee Harvey Oswald, close to ground zero, with a freshly fired riffle, immediately after JFK was shot. Contrary to the governments report, skeptics argue a vast scope of conspiracies to shed light on what they believe happened that day; ideas ranging from magic bullets, multipleRead MoreThe Kennedy Assassinations By John F. Kennedy Essay1486 Words   |  6 Pages Decades later, the Kennedy assassinations and surrounding mysteries continue holding public interest. Although their notoriety as charismatic leaders is a significant contribution, other factors regarding societal psychology deserve consideration whilst exploring this phenomenon. With these events occurring during a time that allows living witnesses, modern accessible evidence, various media covera ge, and visible modern impact, the mysterious Kennedy assassinations have the capacity to encourageRead MoreJohn F. Kennedy Assassination1618 Words   |  7 PagesJohn F. Kennedy Assassination Was John F. Kennedy’s assassination a single shooter or was it a conspiracy? Since November 22, 1963 people around the world have wondered who it was that shot President Kennedy, and what for. So many questions have formed around this event, not just about who the shooter was, but also questions like what might the world have been like today if the shooting didn’t happen? The Kennedy assassination has been a mystery for many years. A lot of people hear about the differentRead MoreAssassination Of John F. Kennedy1002 Words   |  5 PagesThe Assassination of John F. Kennedy â€Å"Our most basic common link is that we all inhabit this planet. We all breathe the same air. We all cherish our children’s future. And we are all mortal.† President Kennedy stated in his commencement speech at American University on June 10, 1963. John F. Kennedy was an American politician who served as the 35th President of the United States from January 1961 to his assassination in November 1963. There are numerous conspiracy theories involving Kennedy’s assassinationRead MoreAssassination of John F. Kennedy931 Words   |  4 PagesThe John F. Kennedy assassination is believed to be one of the most controversial and debated topics in American History. JFK was one of the most beloved presidents of our time. Other assassinations of presidents didn’t have as many Conspiracy theories compared to the JFK assassination on November 22nd, 1963. Some of the theories include a Government cover-up, Mafia influence, and Cuban President Fidel Castro (Stern). T he assassination of John F. Kennedy in Dallas, Texas, raised many questions thatRead MoreThe Assassination Of John F. Kennedy1500 Words   |  6 PagesOn November 23, 1963, three shots were fired at President John F. Kennedy’s limousine in Dallas, Texas. The first shot went through the president’s neck, the second was the fatal shot that would ultimately end Kennedy’s life. There is a lot of speculation about what really took place in the assassination of John F. Kennedy. Many people believe that Lee Harvey Oswald worked alone, but there are many people across the nation who think differently. Many theories can both support and disprove that LeeRead MoreThe Assassination Of John F. Kennedy Essay967 Words   |  4 PagesThe book I chose to read is The Assassination of John F. Kennedy by Lauren Spencer. It was published in 2002 by The Rosen Publishing Group, Inc. It contains 64 pages. This book not only provides information on the killing of President Kennedy, b ut also information on his life, the arrested murderer s life, and more interesting background information and details. This books main objective is to go deeper into the case of John F. Kennedy s assassination, to discuss personal information about suspectsRead MoreAssassination of John F Kennedy1119 Words   |  5 Pagessixth floor of the Texas School Book Depository Building. However, did Lee Harvey Oswald, a crazy lunatic act alone in the assassination of President Kennedy. Both first – hand knowledge and visual evidence allows people to re – examine the events of this day and prove that there were other gunmen involved in the bombardment of our youngest elected president. John F. Kennedy was depicted as a nationwide hero to many Catholics living in the U.S. during the early 1960’s. He was idolized by severalRead MoreThe Assassination Of John F. Kennedy1626 Words   |  7 PagesThe Assassination of John F. Kennedy John F. Kennedy, the 35th President of the United States, was assassinated on November 22, 1963 at 12:30 p.m Central Standard Time in Dallas, Texas while riding in a motorcade in Dealey Plaza.[1] Kennedy was fatally shot by Lee Harvey Oswald while he was riding with his wife, Jacqueline, Texas Governor John Connally, and Connally s wife, Nellie, in a presidential motorcade. A ten-month investigation by the Warren Commission from November 1963 to September 1964

Analysis Of The Movie The Night - 898 Words

â€Å"Here he is,† Mindy said happily when Zack arrived for his detention. Zack looked around. The only people there were Miss Devasquez and Mindy. He knew about the â€Å"special detention† that Miss Hartick had put together, and he had expected that he would have to go through the same thing. It didn’t look that way though. He was glad about that at least. He even let himself expect that this might be a regular detention. He asked, â€Å"It’s just us?† â€Å"It’s just us,† Miss Devasquez said. Playfully, she said, â€Å"What were you expecting?† Then the classroom door opened again as Shelly walked in. â€Å"Am I in time? Hi, Zack.† Zack groaned. Miss Devasquez was not having that though. â€Å"Shelly, why are you here?† â€Å"Aren’t we going to, uh, isn’t Zack going to have to?† Miss Devasquez couldn’t help enjoying this. â€Å"I think Zack could learn a bit about respecting women. This isn’t an interview though. I can handle this.† â€Å"But! Wait, what do you mean?† Shelly didn’t want to tiptoe around it. She shut the door behind her so that she could talk. â€Å"If you’re going to strip him down, then why can’t I watch?† Zack said, â€Å"Is this necessary? You can do whatever you want to us in the locker room. Do you have to pull us out of there to humiliate us?† â€Å"You should have thought of that before you decided to call us alley cats,† Miss Devasquez said. â€Å"Shelly, Zack will be uncomfortable enough with just me and Mindy here to see him.† â€Å"So what? Who cares how uncomfortable he is? I want to see him naked too.† â€Å"Come on!†Show MoreRelatedAnalysis Of The Movie The Night 996 Words   |  4 Pagesneedles of death! she exclaims. I don t understand you, Bridges. Josh laughs,You saved my life, but then almost gave me a heart attack. Brianna smiles up at him as he laughs. Adoration shines in her eyes, sparkling like stars on the darkest of nights. Blood curdling needles of death? Josh chuckles, So dramatic! Have you ever considered writing? Shut up Ramsay. Brianna smirks, I would be a wonderful author. Josh walks closer to the bed, his heart racing. He sits down in the same spotRead MoreAnalysis Of The Movie The Night 957 Words   |  4 Pagesthem. The figures were grim in appearance, green, ribs protruding from the side, hollow eyes, and open mouths that were letting out a hollow scream. Our class, 30 in number, shuffled in and took our seats. Once in our seats we were shown a movie. The movie was about the Holocaust, and some of the people who were fortunate enough to survive it. The film covered significant points that were the crescendos of this time in History. The survivors spoke on their experiences, how they survived, and theRead MoreAnalysis Of The Movie The Night 867 Words   |  4 PagesRichards briefcase it showed the audience that Paul was showing his anger due to the fact he had feeling for Anne. 9. There were a couple unique sound effects in the play. The sound effects was the pounding on the door, the noise of the door across the hall closing, the door knob when it was being unscrewed from the door, a baby crying, and the jiggle of a dogs collar. The sound cues were executed at the right moments in the play. For example, when the lady from 4a came into 4b’s apartment to talkRead MoreAnalysis Of The Movie The Night 858 Words   |  4 Pagesreally missed the great adventure, which not only added gas to her fire but it made her go on a rage. This rage lasted for weeks and weeks and she ended up destroying her room just to show her parents how bad she wanted to go to the carnival. The night that she destroyed her room a little leprechaun about the same size of her foot with a face that looked cute, according to Lucy which made it easier for the leprechaun to convince her into going with him to the carnival. The leprechaun ran into herRead MoreAnalysis Of The Movie The Night 1065 Words   |  5 PagesAt Once Again Antiques, Zach hesitated under the store’s overhang and stomped the snow from his boots. In the display window, a vintage jukebox played Deck the Halls, and next to it, a color wheel revolved in front of an aluminum Christmas tree. He removed his Stetson and tapped it against his pant leg, releasing a dusting of snow from the dark felt brim. Whatever was supposed to happen would be today, December 24th. For Gran’s sake, he’d ask an eye-catching, yet complete stranger to accompany himRead MoreAnalysis Of The Movie The Night 1047 Words   |  5 Pagestrying my best (and failing miserably) to keep the tears out of my eyes. Fairly recently, I assumed that role for another friend. The symbolism, it kills me. And yet here I am, sitting in a Starbucks at 7:04 in the morning because I didn’t sleep last night and instead watched the last season of FRIENDS and cried, wondering when I’d find someone who loved me as much as Ross loves Rachel, as much as Chandler loves Monica, and wondering when I would ever love someone in the same way. Wondering if it’d happenRead MoreAnalysis Of The Movie The Night 925 Words   |  4 Pagesher friends enjoyed the use of the house owned by her best friend’s parents. They had the run of Megan’s family beach home in Playa Del Rey for the holiday week. Megan’s parents were on location in Canada for two months. Her dad and mom were on a movie shoot filming a creature feature. As a result, the friends felt they were on one long slumber party, similar to the ones they enjoyed as teenagers. Only at this juncture of their life, wine and men liven up the week-long gathering. The young womenRead MoreAnalysis Of The Movie The Night 978 Words   |  4 PagesBy the following Tuesday night she was ready to resume taking after having several nights of poor sleep. The doorbell rang about 1A.M., I got up in time to see Kevin handing an almost nude Susan a Sunday. All she had on was her pink panties, hmm..she had pajamas on when she went to bed. At first I thought she might be awake, but her blank expression led me to believe she was in ambient trance. How did Kevin know to bring a Sunday or did he just chance it? Why was Susan naked? Did she call KevinRead MoreAnalysis Of The Movie The Night 1181 Words   |  5 Pagespassenger side of her father’s transport looking at her as if he were about to laugh, but she had at once said to him, â€Å"Did you set the wheels in motion?† sounding much like one of those mid-twentieth century spies in one of New America’s old archived movie records Phillip had recently viewed. â€Å"Everything’s going according to plan so far,† he simply stated back with a grin. A few miles away, once they neared Inez’s place, Cassidy parked on Bethwin Road not far from where she had previously vandalizedRead MoreAnalysis Of The Movie The Night 1673 Words   |  7 Pagesvisiting her friend Melinda who was staying with her father at his place in Elmira, NY. But, after having arrived a day early and not wanting to be a burden. Pamela decided to make a stop at the Ramapo Valley resort just outside of Monticello for the night. Melinda, who had also been a former working girl, had left Miami six years earlier when she had chosen to turn her life around by getting clean. At the time, a local pimp who only went by the name of â€Å"Rangel† had tried to kill her for stealing

Financial Management Shareholders Regards

Question: Part. A Q1.i) What factors determine the expected return of a portfolio? ii) Distinguish between selection and allocation in the context of portfolio management. Part B QB1) Compare and contrast the notions of weak-form, semi-strong-form and strong-form marketm efficiency. QB2) Critically examine the following concepts: a) Capital Asset Pricing Model b) Arbitrage Pricing Theory a) Explain the patterns (effects) in equity returns? b) According to the above study, what effects can be seen in the Australian market? Explain. You are asked to use similar articles for more information. Part C QC.1.a. Explain the motives behind mergers and takeovers. QC.1.b. Consider the following two quotations. The quotation below is taken from: Jensen and Ruback (1983) The Market for Corporate Control, Journal of Financial Economics, Vol. 11(April): 5-50. Many controversial issues regarding the market for corporate control have yet to be settled and many new issues have yet to be studied. It is clear, however, that much is now known about this market. Indeed, it is unlikely that any set of transactions has been studied in such detail. In brief, the evidence seems to indicate that corporate takeovers generate positive gains, that target firm shareholders benefit, and that bidding firm shareholders do not lose. Moreover, the gains created by corporate takeovers do not appear to come from the creation of market power. Finally, it is difficult to find managerial actions related to corporate control that harm stockholders; the exceptions are those actions that eliminate an actual or potential bidder, for example, through the use of targeted large block repurchases or standstill agreements. Jensen and Ruback (1983), p. 43. The quotation below is taken from: Renneboog and Zhao (2014) Director networks and takeovers, Journal of Corporate Finance, Vol. 28: 218234. In this paper, we focus on how the connections of bidder and target firms impact on various aspects of mergers and acquisitions (MAs) in the UK. In a network context, we study the frequency of takeovers, the MA process (in particular, the duration of the negotiation and the success versus failure at the end of the negotiation process), the means of payment (all-equity, all-cash or mixed offers), the retention or attraction of directors of the target firm on the board of the merged firm, and whether there is a difference in terms of abnormal returns at the announcement of connected and non-connected MAs. Renneboog and Zhao (2014), page 219. Question QC1.b: Do takeovers increase the value of the target, or the bidder company, and/or aggregate market value? NB: 1) Understanding the notions in articles is more important than an entanglement with the advanced math in many articles; and Do not plagiarise the article content, instead cite or better yet, paraphrase it and always give full references. This shows that your opinions are informed opinions. Answer: The expected return on the portfolio would be dependent on the following factors. Stock Selection for the portfolio If the portfolio consists of stocks that tend to offer higher returns, then it will have an impact of the portfolio returns as well. However, on the other if the constituent stocks have lower average returns, then the expected return on the portfolio would diminish (Damodaran, 2008). Consider there are two portfolios X and Y. X has equal share of both A and B whose average returns are 10% and 20% respectively. However, Y has equal share of both A and C whose average returns are 10% and 5% respectively. Expected returns on X = 0.5*10 + 0.5*20 = 15% pa Expected returns on Y = 0.5*10 + 0.5*5 = 7.5% Hence, higher return stock should be selected while accounting for underlying risk. Weights of the stocks In order to enhance the expected returns, maximum weightage must be given to the stock that has be highest expected return. For instance, assume another portfolio Z is in place now which constitutes 25% of A and 75% of B (Petty et. al., 2015). Hence, expected returns on Z = 0.25*10 + 0.75*20 = 17.5% pa Thus, superior returns are delivered by altering the weight of the individual stock. Stock Selection refers to the traditional approach to portfolio management where the aims and objectives of the underlying investor were taken into consideration and thus the stocks were selected so as to ensure that these objectives of the investor are met while respecting the constraints in the process. The various aims and objectives dealt with requirement of income at specific time periods along with the requirement of liquidity and returns. Hence, those securities are included in the portfolio which tends to serve the objectives of investment without any regard to efficiency (Brealey, Myers and Allen, 2008). The Stock allocation approach to portfolio management is a modern approach which is based on Markowitz theory and takes into consideration the risk return features of the various asset classes and available securities and based on this an optimum portfolio is chosen which tends to maximise the return per unit risk rather than the focusing on the individual objectives of the given investor. This is a superior approach since the emphasis is on selection of optimum portfolio from the aspect of efficiency which augers well for the investor (Parrino and Kidwell, 2011). PART B The various forms of market efficiency are illustrated below. Weak Form of market efficiency As per this form, the future stock prices follow a random walk and thus are independent of the past price trends. The future prices of the stocks would essentially be driven by the information flow in the future and no such pattern can be derived from any analysis of historical prices. As a result, this argument renders technical analysis as useless while giving some utility to the fundamental analysis (Petty et. al., 2015). Semi-Strong Form of market efficiency As per this form, the stock prices tend to adjust to any new information in the public domain in such a swift manner that market participants cannot initiate trades based on this information in order to consistently beat the market. As a result, this form of market efficiency renders both technical and fundamental analysis as useless as the price adjustment is so quick that no trade can be made by the market participants (Damodaran, 2008). Strong Form of market efficiency As per this form, the market price of a stock tends to build in all the private and public information that may be available with regards to the stock. Further, any deviation from the intrinsic price is so quick that the it cannot be used to beat the market on a sustainable basis. This form is not true in any stock market as it makes glaring assumptions with regards to the information symmetry and lack of taxes and incidental costs (Shim and Siegel, 2008). A) Capital Asset Pricing Model (CAPM) The CAPM is a theoretical framework which aims to establish a linear relationship between risk and the expected returns on the stock. While it is a simple and useful model, it has certain shortcomings indicated below (Brealey, Myers and Allen, 2008). The risk free rate and the market returns are not constant values and are dynamic on a daily basis. The underlying assumption that the money could be lent and borrowed at the risk free rate is not true and essentially would depend on the underlying risk profile of the borrower and lender. There are concerns with regards to the beta not being able to faithfully capture the systematic risk. B) Arbitrage Pricing Model As per this model, there is a relationship between the underlying risk and return of the stock which can be predicted by multifactor analysis such as macroeconomic variables (inflation, unemployment GDP) along with factors that may be specific to a particular industry. Unlike CAPM which is a single factor model, APM tends to focus on multitude of factors so as to spot short term arbitrage opportunities by finding the difference between intrinsic price of stock and the actual market price. The main shortcoming of this model is the underlying complexity and limitation with regards to accounting for every variable that may impact the stock price (Damodaran, 2008). C(a) The various patterns in equity returns are highlighted below (Petty et. al., 2015; Parrino and Kidwell, 2011; Damodaran, 2008). Size effect As per this effect, typically firms that are smaller in size tend to outperform the companies that are larger in size in terms of returns. Book to Market Effect As per this effect, the stocks having higher book to market value are cheaper and value stocks and must be invested into as compared to the ones with comparatively lower book to market value. Earnings to Price Effect As per this effect, the stocks having higher earnings to price ratio tend to outperform the stocks with lower earnings to price ratio in terms of return in the long run. Cash flow to Price Effect - As per this effect, returns on those firms which tend to generate higher cash flows per unit of price is lower as compared to those firms which tend to generate lower cash flows per unit of price. Leverage Effect As per this effect, the underlying valuation of any stock in the market is dependent on the underlying leverage present in the capital structure as typically high volatility in stock price is associated with high leverage and hence companies having low leverage are considered to be relatively safe bets with lower price volatility. Liquidity Effect Typically higher the liquidity on a given stock, lower would be the return expected on the stock as the bid ask spread would be lower. Hence, for stocks having low spread, it is likely that they would be held for longer periods as compared to those with higher spreads. b) The various anomalies that are seen in case of equity returns are not able to get an explanation from the traditional CAPM approach which is essentially a single factor model based on beta. Hence, it makes sense to use modern approach suggested by Fama French which takes into consideration multiple parameters to accurate determine the returns on the stock. There have been numerous research studies in the context of anomalies of stock return specific to Australian market and evidence has been found with regards to the existence of liquidity effect, size effect and B/M effect to various degrees. However, the given study takes into consideration the Fama French approach which has been successfully deployed in the US market. The given research finds that the larger portfolios tend to have lower returns as compared to those with smaller portfolios that tend to have higher returns (Damodaran, 2008). Hence, the presence of the size effect is confirmed in the study which is in line with e mpirical observations collected from other studies conducted in the Australian context. With regards to B/M ratio, it is apparent that the returns of those stocks that have a higher B/M ratio tend to be higher than those stocks that have a lower B/M ratio. This is in line with the empirical evidence collected from previous studies in the Australian market and lends support to the existence of B/M effect as per which value stocks tend to outperform growth stocks. Additionally, it has been found in the study that a U shaped relationship tends to exist between the underlying leverage levels and the returns on stock. As a result, portfolio which either have low or high leverage tend to outperform those which have leverage in the middle range. This does hint towards the presence of a leverage effect but the result obtained is contrary to that obtained by previous research conducted in the US context which concluded the relationship to be of inverted U shape. Hence, further research is required on this aspect in the Australian concept (Gharghor, Lee and Veeraraghavan, 2009). With regards to existence of liquidity effect in the Australian context, the researchers are divided as the current study fails to establish its presence but previous studies in this regards have indicated the presence of various premiums associated with liquidity associated with investment in different time horizons. Hence, it would be fair to conclude that no consensus exists in this regard. The current study indicates the existence of a mild C/P effect and it is in line with the understanding of this effect that as C/P value increases, there is a downward trend in terms of returns. Also, a E/P effect is quite visible on the basis of the given research that has been conducted and it tends to support the empirical observations that have been observed in the US market. It is noteworthy in this regard that the E/P effect is comparatively more strong for stocks have negative earnings that for those which display a positive earnings. Future research in these regards could bring more cla rity on the difference in strength of the E/P effect (Gharghor, Lee and Veeraraghavan, 2009). Part C 1a. The various motives behind mergers and takeovers are as follows (Brealey, Myers Allen, 2008). Synergies The most common motive is this as it is widely believed that merged entity would be bigger than the sum total of two individual entities due to savings in cost or enhanced revenues by ensuring cross selling of products in newer markets that can be accessed through this route. Diversification Another common reason which is adopted by conglomerates is diversification of strategic business units so that the business risk could be adequately hedged and also the various lucrative businesses could be acquired in line with the existing market conditions. Market Power The merger of two big companies can potentially be motivated through the desire to increase the market clout as the formed entity would be big enough so as to impact the prices and cause a change in the market structure for the benefit of the merged entity. Rapid Growth With regards to achieving growth, a company has two alternatives and the takeover route is the inorganic route where the related business investment is made perhaps in a geography or product line where the company intends to enter and therefore enhance the presence. Acquisition of specific skills or capabilities Typically, firms that are lacking in a particular aspect or skill tend to look for specific targets so as to make up for the skill deficiency through the acquisition route. This is especially the case when the same cannot be developed using the internal capabilities in a time bound manner. b) One of the key topics of research with regards to mergers and acquisitions has been the concept of value creation in such deals. There has been wide debate with regards to the value creation from such deals with studies yielding contradictory results. In order to summarise the value creation in corporate takeovers, there are various studies that have been conducted from various perspective considering a host of variables that tend to impact the value created. The key data in this regard is provided by various event studies that tend to measure the abnormal returns that are witnessed when the announcement regarding the takeover or merger is first made (Petty et. al., 2015). With regards to target firms shareholders, studies have indicated double digit monthly returns ranging from 16 % to 29%. However, the returns have been comparatively less spectacular in case of merger target firms although they have been positive (Brown and Warner,1980). But, certain researchers estimate that the reaction of shareholders to the initial news tends to underestimate the extent of value creation since it does not consider the share premium that has been paid by the acquirer even before the takeover has taken place (Dodd and Ruback, 1977). Further, it has also been empirically observed that there is no difference in the potential gains realised by the shareholders of the target firms irrespective of whether the bid goes through or not. However, in such cases, if no bidder gets attracted within a period of two years, then all the potential gains that the stock realised at the time of the offer would be lost in a gradual manner. With regards to shareholders of the bidding firm, it has been empirically observed in various event studies that for successful bids, there is creation of some shareholder value as represented by increase in the share price but it is significantly lower than that created for the target firm. However, the above is limited only to tender offers as in case of mergers due to mixed nature of observations. But more evidence in this regards, hints that in case of mergers, the gains for the bidding firm as reflected by the immediate movement in the stock price tends to be almost zero (Asquith, Bruner and Mullins, 1983). The negative perception of mergers in the minds of the investors is also supported by certain empirical studies which indicate that the news of the unsuccessful bids in case of mergers typically leads to a mild positive response from the market (Asquith and Kim, 1982). However, there is considerable debate between researchers with regards to utility of abnormal returns by the bidding firms accurately capturing the creation of value as it might be anticipated to some extent and also because the gains for the bidder firms may be gradual as compared to the target firm which is able to cash out at the time of the merger or takeover (Jensen and Ruback, 1983). Also, there are computation issues for estimation of precise gains for the bidder firm. One of the contributory reasons in this regards is the difference in size due to which even if the absolute gains are evenly split, in percentage terms, the gains for the target firm would significantly outweigh the bidder firm. This effect is confirmed by the study done by Asquith, Bruner and Mullins (1983) who based on event studies, concluded that the returns for bidder firms are significantly greater when the target is more than 10% of the size of the bidder as compared to when it is lesser. Also, certain studies also indicate post-merger correction in the bidder stock which can be explained on the basis of error in estimation of merger related gains which may not actually transform. Further, it is likely that regulatory changes and other issues related to integration of the firms may also have an effect on the likely efficiency gains which are reflected in the stock price only when these are unfolded (Jensen and Ruback, 1983). A logical conclusion of the above impact is that on the whole value is created since neither of the party is ending up losing although the gains are comparatively higher for target firms in comparison to bidders. Further, there is evidence to support that gains in case of merged entities do not arise necessarily from synergies or cost savings but from the change in the corporate control which essentially leads to higher valuation for the companies (Bradley, 1980). Considering the complex landscape where a plethora of players and legal regulations are involved, it would be nave to expect that the value creation is as simple as transfer of wealth from the target that is being acquired or merged with. The exact gains are in actuality dependent on a host of factors ranging from level of information available in the public domain about the merger/takeover, antitrust violations and also the issues of corporate control (Jensen and Ruback, 1983). Further, it is estimated that the level of connection of directors also has an impact on the frequency of takeovers and the mode in which it is executed which in turn could influence the process and amount of value creation. Typically, the companies that have well connected directors tend to have more access to information and are able to forge better trust with the top management of the target firm which ensures the above average activeness of these firm with regards to mergers and acquisitions (Liu, 2014). Further, research in this regard indicates that the probability of implementation of a successful takeover tends to enhance in a statistical significant manner, if atleast director is common to both the firms Also, in case of networked firms led by their CEOs there is a drastic decrease in the amount of time used for negotiation irrespective of the fact whether they proceed with the takeover or not. Besides, in takeovers where there is relation between the firms, equity is compar atively more often used for compensation rather than cash which is reflective of the greater transparency and also information premium gained through such access (Wu, 2011). Also, another advantage associated with connected MAs is the fact that there is a significantly greater chance that the key management of the target firm would be retained. It is apparent that all the above factors hint towards the process of MA being completed in a more efficient manner which in the long term should enhance the overall value creation. However, with regards to creation of value, the market does not seek to believe that better networked CEOs and directors tend to work out better deals and hence thus no superior returns are derived for these. This is rather strange and unpredictable and hints to the continued research in this field so as to understand as to capture the exact parameters that tend to drive the value generation in case of mergers and acquisitions (Renneboog and Zhao, 2014). References Asquith, P. and Kim, E.H. (1982), The impact of merger bids on the participating firms security holders, Journal of Finance, 37, 1209-1228. Asquith, P., Bruner, R. and Mullins, D.W.(1983), The gains to bidding firms from merger, Journal of Financial Economics, 11(April), 45-67 Bradley, M. (1980), Interfirm tender offers and the market for corporate control, Journal of Business 53, 345-376. Brealey, R., Myers, S. and Allen, F. (2008), Principles of Corporate Finance (Global edition), New York: McGraw Hill Publications Brown, S. and Warner, J. (1980), Measuring security price performance, Journal of Financial Economics, 8, 552-558. Damodaran, A. (2008), Corporate Finance, London: Wiley Publications Dodd, P. and Ruback, R. (1977), Tender offers and stockholder returns: An empirical analysis, Journal of Financial Economics 5, 351-374. Gharghor, P., Lee R. and Veeraraghavan, M. (2009), Anomalies and stock returns: Australian evidence, Accounting and Finance, 49, 555 576. Jensen,M.C. and Ruback R.S. (1983), The Market for Corporate Control, Journal of Financial Economics, 11(April), 5-50. Liu, Y. (2014). Outside options and CEO turnover: The network effect, Journal of Corporate Finance, 28, 201217 Parrino, R. and Kidwell, D. (2011), Fundamentals of Corporate Finance, London: Wiley Publications Petty, J.W., Titman, S., Keown, A.J., Martin, P., Martin J.D. Burrow, M. (2015), Financial Management: Principles and Applications, Sydney: Pearson Australia, Shim, J.K. and Siegel, J.G. (2008), Financial Management, New York: Barrons Renneboog, L. and Zhao, Y. (2014), Director networks and takeovers, Journal of Corporate Finance, 28, 218234. Wu, Q. (2011). Information conduit or agency cost: top managerial and director interlock between target and acquirer. Working Paper, Arizona State University.