Building Virtual Dominions - A Comparative Study of Mergers, Acquisitions and Strategic Alliances in E-commerce: Case Studies of Amazon.com and eBay.

Zilevicus, Stasys (2006) Building Virtual Dominions - A Comparative Study of Mergers, Acquisitions and Strategic Alliances in E-commerce: Case Studies of Amazon.com and eBay. [Dissertation (University of Nottingham only)] (Unpublished)

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Abstract

This paper is aimed at finding motives and assessing consequences of mergers,

acquisitions and strategic alliances of two world largest e-commerce companies'

Amazon.com and eBay. It overviews a vast amount of theoretical literature on

mergers, acquisitions and strategic alliances incentives and presents empirical

literature findings on companies' financial and stock market's post-merger

performance. Case studies section of the dissertation examines the history and

motives of Amazon.com and eBay for engaging in mergers, acquisitions and strategic

alliances activity, and measures the consequences of this activity by applying

accounting and empirical financial approaches. Qualitative data is obtained from both

online and published resources; the findings are that:

1. Mergers, acquisitions and strategic alliances contribute to increase in net

sales revenues and cumulative customer base.

2. However, their impact on market share can be either positive or neutral.

Quantitative data is taken from the companies' annual reports, business

research companies' archives and financial website, Yahoo! Finance.com. The

empirical models test four hypotheses, which concern the companies' financial and

stock market performance. The findings of these models can be summarised as

follows:

1. Mergers, acquisitions and strategic alliances can have either positive or

negative effect on the companies' financial performances.

2. Mergers and acquisitions have either negative or close to zero effect on the

companies' stock market's performance.

3. Strategic alliances have strongly positive effect on the companies' stock

market's performance.

4. If strategic alliances are specified into marketing and technological

alliances, the impact of both types on the companies' stock performance

varies.

Item Type: Dissertation (University of Nottingham only)
Depositing User: EP, Services
Date Deposited: 09 Nov 2006
Last Modified: 23 Oct 2016 19:58
URI: http://eprints.nottingham.ac.uk/id/eprint/20782

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