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Sample on Strategic Finance for Managers

Read sample on Strategic Finance for Managers, in this report the experts of Global Assignment Help examining the fluctuations in stock performance of both the Microsoft Corporation and LinkedIn. We also provide the analysis of the stock market and share price of both of the organisation

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Sample on Strategic Finance for Managers

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  1. Sample Report On Strategic Finance for Managers Toll Free No. +44 203 3555 345 Mail Us: help@globalassignmenthelp.com Global Assignment Help offers top notch Assignment Help in UK at best price. We also offer 5% Extra off by ordering through our APP.

  2. Table of Contents TASK 1................................................................................................................................................. 3 PART A ................................................................................................................................................ 3 Brief description of the two companies involved in the merger ...................................................... 3 Initial offer and any subsequent offer ............................................................................................... 4 Reaction of the target by management ............................................................................................. 6 Defence mechanism ......................................................................................................................... 6 Role of takeover panel ...................................................................................................................... 7 SHARE ANALYSIS ............................................................................................................................ 7 AR calculations ................................................................................................................................ 7 Value of beta ................................................................................................................................... 10 CAR calculations ............................................................................................................................ 10 AR and CAR Graphs ...................................................................................................................... 11 Relationship with research ............................................................................................................. 15 PART B .............................................................................................. Error! Bookmark not defined. CONCLUSION .................................................................................................................................. 16 REFERENCES................................................................................................................................... 18 Toll Free No. +44 203 3555 345 Mail Us: help@globalassignmenthelp.com Global Assignment Help offers top notch Assignment Help in UK at best price. We also offer 5% Extra off by ordering through our APP.

  3. TASK 1 PART A Brief description of the two companies involved in the merger Microsoft Corporation is a multinational technology company, listed on NASDAQ and headquartered in Redmond, Washington. Company design and manufacture computer software, personal computers, consumer electronics products and devices. It is one of the leading software developing company that have a strong product portfolio such as Windows, Offices, Skype, Dynamics, Visual Audio and Servers etc. The aim of the company is to empower each and every person on the plant to achieve improvements. On the other hand, LinkedIn is a social networking sites traded on NYSE and operates worldwide. Company renders professional networking services especially to the recruiters and sales professionals to create their profiles to interact with each other via social networking. So that, users can interact each other without the need of website development. It is the world’s biggest professional networking company which aimed at building a strong and growing business (McNeil, Frey & Embrechts, 2015). As a strategic and savvy move, Microsoft acquired LinkedIn Corporation worth $26.2 billion dollar. The main purpose of this merger is to jump towards software packages by having vast network of LikedIn Corporation. It proves as one of the largest and riskiest acquisition in the corporate history. One main reason behind such behind such merger is to use LinkedIn wide network to deliver best value to the customers in return for their money invested. There are number of parties involved in this merger as, Microsoft Corporation’s Certified Executive Officer (CEO), named Satya Nadella announced a definitive agreement in 2016 to acquire LinkedIn valued at $196 each share while the total value of acquisition valued at $26.2 Toll Free No. +44 203 3555 345 Mail Us: help@globalassignmenthelp.com Global Assignment Help offers top notch Assignment Help in UK at best price. We also offer 5% Extra off by ordering through our APP.

  4. billion. While, in the agreement, it has been decided that LikedIn Corp’s CEO, Jeff Weiner will remain in this position and report to the Satya Nadella (Gara, 2016.). Moreover, board members such as Reid Hoffman, Board Chairman and Co-founder of LikedIn group are also involved in this acquisition and give their acceptance for approval of merger. This merger gives an opportunity to the Microsoft to bring significant level of changes to connect entire world (Lind & et.al., 2012). Moreover all the investors are also considered as important stakeholder involved in the merger because without their approval, it is not possible to acquire LinkedIn by Microsoft Corp (4 Reasons why Microsoft wasted $26.2 billion to buy LikedIn, 2016). In addition to this, Chief Financial Officer (CFO) named Amy Hood, Chief Legal Officer (CLO) Brad Smith, Co-founder Bill Gates. Microsoft’s President, financial advisor Morgan Stanley, legal advisor Simpson Thacher and Barlett, LikedIn’s financial advisor and Qatalyst Partners, Allen & Company and legal advisor Wilson Sonsini Goodrich & Rosati, are the parties who are involved in this acquisition (Microsoft News Center, 2016). LikedIn’s BOD and associated members given their consent on the offer presented by Microsoft and deal is expected to close down at the end of the year. Initial offer and any subsequent offer On 13 June, 2016 at 8:30 AM, Microsoft and LinkedIn organized a joint conference call with the investors to present initial acquisition offer via web telecast at Microsoft’s official website. The web telecast hosted by the company’s CEO, Amy Hood, President, Brad Smith on Microsoft News Center. In the press release, a forward-looking statement has been released containing the information about potential impact of the offer such as result, inherent risk, legal proceeding, effect on business relationship and result in the forthcoming period (Green, 2016). Initially, MSFT announced to takeover LinkedIn at lower price, but due to bidding from sales force, it pushed deal prices by 22% Toll Free No. +44 203 3555 345 Mail Us: help@globalassignmenthelp.com Global Assignment Help offers top notch Assignment Help in UK at best price. We also offer 5% Extra off by ordering through our APP.

  5. or roughly by $5 billion during a period of two months. It increased acquisition price per share to $196 (Green. 2016). Although, LI’s share price has been declined by 40% and generate lower yield than expected resulted in net loss of $165 billion. But still, health premium offered by MSFT to 50% over the trading price $133/share is a beneficial deal for LI, as a result, LI agreed to merge with Microsoft (Green. 2016). As per the graph, it can be seen that offer value of $26.2 billion is approximately 91 times of its EBITDA (Earnings before interest, taxes, depreciation and amortization), however, excluding net cash, it is about 84 times to EBITDA. Moreover, Microsoft also held decisions to acquire Likedin at $250 million as venture capitalists and deal has been finalised. M&A offer that Microsfot Corp presented to LikedIn indicates that it will result in 19% year by year (YOY) growth by having more than 433 million across world, 9% YOY growth by having more than 105 million members each month, 49% YOY by increasing mobile usage to 60%, 49% YOY growth by maximizing mobile usage to 60%, 34% growth YOY by increasing member page views to 45 billion and increasing 101% growth by having more than 7 million active job listing. This M&A offer has been presented by MSFT so as to boost its overall productivity via maximizing the viral growth of social media. However, it will be beneficial for the LI because although company has strong social network revenue base, but still, recently its turnover growth rate slowed down. Henceforth, it becomes essential for the board of directors and CEO Weinner to rethink and redesign its business strategies to make it easier for the users to use their products and services (Gordić & et.al., 2010). This Toll Free No. +44 203 3555 345 Mail Us: help@globalassignmenthelp.com Global Assignment Help offers top notch Assignment Help in UK at best price. We also offer 5% Extra off by ordering through our APP.

  6. acquisition will enable LikedIn Corp to enlarge their customer base and make it useful for the people to share their updates. This skepticism will jeopardy rival bidders and bring huge market opportunity to maximize target consumer base and maximize profitability to a great extent. Reaction of the target by management With regards to planned M&A, both MSFT and LI’s CEO Satya Nadella and Jeff Weinger were excited and tell their staff member about the deal. They assumed that this deal will bring together world’s largest professional cloud company and leading professional networking company. It will bring fantastic and excellent network by having more than 433 million professionals. Moreover, potential increase in number of commercial and dynamic offices to 365 will assist business to reinvent its productivity and operational processes (McKinney, 2015). Henceforth, it is a profound opportunity for both the companies to reinvent business functions like selling, marketing and talent managerial functioning. Linkedin’s mission is to connect whole world’s professional to increase their productivity. Henceforth, merger with Microsoft is an opportunity exists to LinkedIn to accomplish the business target. Thus, it will accelerate business growth and build-up a strong corporate image in the market. Defence mechanism In order to manage high cost of acquisition, MSFT decided to finance first by issuance of new indebtedness. Moreover, for proper reporting, it has been agreed to report LI’s finance as MSFT’s Productivity and Business segment. In order to get acquisition rights, MSFT expects minimal Toll Free No. +44 203 3555 345 Mail Us: help@globalassignmenthelp.com Global Assignment Help offers top notch Assignment Help in UK at best price. We also offer 5% Extra off by ordering through our APP.

  7. dilution of 1% to non-GAAP earnings per share consists of reporting practices, integration, transaction-based expenses (Aula, 2010). Implementing post-acquisition integration strategy works as a keystone of a successful acquisition with LikedIn Corporation. Role of takeover panel Takeover panel, shortened to PTM is a regulatory body situated in London, England. The body is responsible and accountable to regulate and monitor takeovers and mergers undertaken by the company. This panel has been established under the 171 section of ASIC act (Australian Securities and Investment Commission Act). It plays an essential role to make sure that all the shareholders are treated equally and well during the period of takeover bids (Ugboro, beng & Spann, 2010). PTM has wider authority and power to declare such circumstances that are unacceptable. Moreover, it also plays an inevitable role in mitigating issues and resolve complexities associated with the acquisition of LinkedIn with Microsoft Corporation. Both the companies are liable to follow PTM’s rules, regulations and principles to have successful merger plan. SHARE ANALYSIS AR calculations Abnormal return, shortened to AR represents the surplus or shortage of estimated return on share over actual return. In other words, it can be stated that abnormal return indicates differences between expected or actual return on an event date. In such respect, actual return is computed by identifying the percentage changes in share prices through comparing the prices with earlier date, whilst, expected return is computed by taking into account industrial benchmark and market volatility through beta (Frigo & Anderson, 2011). With the help of this, both the companies MSFT and LI can compare their stock performance with the investors’ expectations. Regarding to current scenario; Microsoft Corporation announced acquisition with LinkedIn on 13 June, 2013. Its share performance by measuring expected and actual return before the period of announcement date and post-announcement are done below: Toll Free No. +44 203 3555 345 Mail Us: help@globalassignmenthelp.com Global Assignment Help offers top notch Assignment Help in UK at best price. We also offer 5% Extra off by ordering through our APP.

  8. Date Microso ft Actual return(% change) LinkedI n Actual return(% change) NYSE prices Actual return(% change) E[R] of Microsof t Abnorma l return (MSFT) E[R] of LI Abnor mal return of Linke din 0.897 775 0.909 053 0.906 203 0.905 683 0.919 763 0.902 107 0.907 717 0.899 572 0.908 997 0.902 714 0.907 043 0.896 636 0.901 414 0.895 204 0.898 282 0.890 525 0.905 749 0.903 655 0.917 29-Jul- 56.68 0.008362 192.73 -0.00279 10785.51 0.003849 1.066095 -1.05773 - 16 0.90057 28-Jul- 56.21 0.000356 193.27 0.005044 10744.16 0.000409 1.062655 -1.0623 - 16 0.90401 -0.9075 27-Jul- 56.19 -0.01004 192.3 -0.0013 10739.77 -0.00308 1.059163 -1.06921 16 26-Jul- 56.76 0.000529 192.55 0.003178 10772.99 0.001912 1.064159 -1.06363 - 16 0.90251 25-Jul- 56.73 0.002828 191.94 0.010476 10752.43 -0.00487 1.057377 -1.05455 - 16 0.90929 -0.9001 22-Jul- 56.57 0.013799 189.95 0.002005 10805.04 0.004315 1.066561 -1.05276 16 21-Jul- 55.8 -0.00197 189.57 0.000106 10758.62 -0.00319 1.059052 -1.06102 - 16 0.90761 -0.9012 20-Jul- 55.91 0.053117 189.55 -0.00163 10793.1 0.003212 1.065459 -1.01234 16 19-Jul- 53.09 -0.01612 189.86 0.001371 10758.54 -0.00321 1.059038 -1.07516 - 16 0.90763 18-Jul- 53.96 0.004842 189.6 0.000158 10793.17 0.001861 1.064108 -1.05927 - 16 0.90256 15-Jul- 53.7 -0.00074 189.57 0.001373 10773.12 -0.00125 1.060994 -1.06174 - 16 0.90567 14-Jul- 53.74 0.004298 189.31 -0.0029 10786.63 0.004884 1.067131 -1.06283 - 16 0.89953 13-Jul- 53.51 0.005638 189.86 -0.00231 10734.2 0.000691 1.062937 -1.0573 - 16 0.90373 12-Jul- 53.21 0.011789 190.3 0.000158 10726.79 0.009371 1.071618 -1.05983 - 16 0.89505 11-Jul- 52.59 0.005545 190.27 -0.00089 10627.2 0.005242 1.067489 -1.06194 - 16 0.89918 8-Jul-16 52.3 0.017906 190.44 0.001262 10571.78 0.015154 1.0774 -1.05949 - 0.88926 7-Jul-16 51.38 0 190.2 -0.00131 10413.97 -0.00264 1.059602 -1.0596 - 0.90706 6-Jul-16 51.38 0.004104 190.45 0.002316 10441.58 0.003078 1.065324 -1.06122 - 0.90134 5-Jul-16 51.17 0.000195 190.01 0.002691 10409.54 -0.0101 1.052145 -1.05195 - 0.91452 21 1-Jul-16 51.16 -0.0002 189.5 0.001321 10515.76 0.002479 1.064725 -1.06492 - 0.903 Toll Free No. +44 203 3555 345 Mail Us: help@globalassignmenthelp.com Global Assignment Help offers top notch Assignment Help in UK at best price. We also offer 5% Extra off by ordering through our APP.

  9. 0.90194 26 30-Jun- 51.17 0.012465 189.25 -0.00179 10489.76 0.013451 1.075698 -1.06323 - 0.889 172 0.886 256 0.885 922 0.921 512 0.945 16 0.89097 29-Jun- 50.54 0.022249 189.59 0.000475 10350.53 0.018637 1.080883 -1.05863 - 16 0.88578 28-Jun- 49.44 0.020855 189.5 0.000317 10161.16 0.018812 1.081058 -1.0602 - 16 0.88561 27-Jun- 48.43 -0.0281 189.44 -0.00352 9973.54 -0.02062 1.041628 -1.06972 - 16 0.92504 24-Jun- 49.83 -0.04007 190.11 -0.00179 10183.51 -0.04301 1.019238 -1.05931 - 16 0.94743 64 23-Jun- 51.91 0.018043 190.45 0.000683 10641.17 0.016052 1.078298 -1.06026 - 0.889 049 0.903 643 0.900 413 0.894 604 0.899 216 0.902 132 0.902 393 0.906 675 1.380 052 0.878 141 0.928 928 0.901 846 0.885 472 0.902 705 0.893 907 0.897 775 16 0.88837 22-Jun- 50.99 -0.00391 190.32 -0.00246 10473.06 -0.00169 1.060557 -1.06446 - 16 0.90611 21-Jun- 51.19 0.022369 190.79 -0.0001 10490.78 0.0039 1.066146 -1.04378 - 16 0.90052 20-Jun- 50.07 -0.0012 190.81 5.24E-05 10450.03 0.009866 1.072112 -1.07331 - 16 0.89455 17-Jun- 50.13 -0.00516 190.8 -0.00277 10347.94 0.002432 1.064678 -1.06984 - 16 0.90199 16-Jun- 50.39 0.014087 191.33 0.000209 10322.84 0.002494 1.06474 -1.05065 - 16 0.90192 15-Jun- 49.69 -0.00281 191.29 -0.00177 10297.16 0.00025 1.062496 -1.06531 - 16 0.90417 14-Jun- 49.83 -0.00618 191.63 -0.00302 10294.59 -0.00527 1.056972 -1.06315 - 16 0.90969 -0.9137 13-Jun- 50.14 -0.02603 192.21 0.466356 10349.18 -0.00928 1.052968 -1.079 16 10-Jun- 51.48 -0.00271 131.08 -0.03985 10446.1 -0.01357 1.048675 -1.05139 - 16 0.91799 9-Jun-16 51.62 -0.00807 136.52 0.019948 10589.82 -0.00456 1.057684 -1.06575 - 0.90898 8-Jun-16 52.04 -0.00115 133.85 0.001122 10638.36 0.003693 1.065939 -1.06709 - 0.90072 7-Jun-16 52.1 -0.00058 133.7 -0.01474 10599.22 0.004207 1.066453 -1.06703 - 0.90021 6-Jun-16 52.13 0.006565 135.7 0.004664 10554.82 0.006377 1.068623 -1.06206 - 0.89804 3-Jun-16 51.79 -0.01315 135.07 -0.01048 10487.94 3.43E-05 1.062281 -1.07543 - 0.90438 2-Jun-16 52.48 136.5 10487.58 - 0.90057 Toll Free No. +44 203 3555 345 Mail Us: help@globalassignmenthelp.com Global Assignment Help offers top notch Assignment Help in UK at best price. We also offer 5% Extra off by ordering through our APP.

  10. Value of beta It indicates volatility in portfolio in comparison to the overall market and helps to compute expected return of an individual company’s stock and assets. With reference to both the MSFT and LinkedIn, it beta value by taking into account volatility in NYSE index is calculated here as under: Value Beta Alpha MSFT 1.061083 0.001164 LinkedIn -0.91613 0.01171 CAR calculations CAR is just the cumulative values of abnormal return for the event, in other words, it refers to sum of abnormal returns (Green. 2016). With reference to the given scenario, cumulative abnormal return for pre and post-announcement of MSFT and LinkedIn are computed below: Date AR (Microsoft) CAR (Microsoft) AR (LikedIn) CAR (LikedIn) 0.897775 1.806827 2.71303 3.618713 4.538476 5.440583 6.3483 7.247873 8.15687 9.059584 9.966627 10.86326 11.76468 12.65988 13.55816 14.44869 15.35444 16.25809 17.1753 18.07856 18.96773 19.85399 20.73991 29-Jul-16 28-Jul-16 27-Jul-16 26-Jul-16 25-Jul-16 22-Jul-16 21-Jul-16 20-Jul-16 19-Jul-16 18-Jul-16 15-Jul-16 14-Jul-16 13-Jul-16 12-Jul-16 11-Jul-16 8-Jul-16 7-Jul-16 6-Jul-16 5-Jul-16 1-Jul-16 30-Jun-16 29-Jun-16 28-Jun-16 -1.05773 -1.0623 -1.06921 -1.06363 -1.05455 -1.05276 -1.06102 -1.01234 -1.07516 -1.05927 -1.06174 -1.06283 -1.0573 -1.05983 -1.06194 -1.05949 -1.0596 -1.06122 -1.05195 -1.06492 -1.06323 -1.05863 -1.0602 -1.05773 -2.12003 -1.06921 -2.13283 -1.05455 -2.10731 -1.06102 -2.07336 -1.07516 -2.13443 -1.06174 -2.12457 -1.0573 -2.11713 -1.06194 -2.12144 -1.0596 -2.12082 -1.05195 -2.11687 -1.06323 -2.12187 -1.0602 0.897775 0.909053 0.906203 0.905683 0.919763 0.902107 0.907717 0.899572 0.908997 0.902714 0.907043 0.896636 0.901414 0.895204 0.898282 0.890525 0.905749 0.903655 0.91721 0.90326 0.889172 0.886256 0.885922 Toll Free No. +44 203 3555 345 Mail Us: help@globalassignmenthelp.com Global Assignment Help offers top notch Assignment Help in UK at best price. We also offer 5% Extra off by ordering through our APP.

  11. 27-Jun-16 24-Jun-16 23-Jun-16 22-Jun-16 21-Jun-16 20-Jun-16 17-Jun-16 16-Jun-16 15-Jun-16 14-Jun-16 13-Jun-16 10-Jun-16 9-Jun-16 8-Jun-16 7-Jun-16 6-Jun-16 3-Jun-16 2-Jun-16 -1.06972 -1.05931 -1.06026 -1.06446 -1.04378 -1.07331 -1.06984 -1.05065 -1.06531 -1.06315 -1.079 -1.05139 -1.06575 -1.06709 -1.06703 -1.06206 -1.07543 -2.12993 -1.05931 -2.11956 -1.06446 -2.10824 -1.07331 -2.14315 -1.05065 -2.11596 -1.06315 -2.14215 -1.05139 -2.11714 -1.06709 -2.13412 -1.06206 -2.13749 0.921512 0.94564 0.889049 0.903643 0.900413 0.894604 0.899216 0.902132 0.902393 0.906675 1.380052 0.878141 0.928928 0.901846 0.885472 0.902705 0.893907 21.66142 22.60706 23.49611 24.39976 25.30017 26.19477 27.09399 27.99612 28.89851 29.80519 31.18524 32.06338 32.99231 33.89416 34.77963 35.68233 36.57624 AR and CAR Graphs Figure 1 Pre-announcement abnormal return of Microsoft Toll Free No. +44 203 3555 345 Mail Us: help@globalassignmenthelp.com Global Assignment Help offers top notch Assignment Help in UK at best price. We also offer 5% Extra off by ordering through our APP.

  12. Figure 2Pre-announcement abnormal return of LinkedIn Figure 3 Pre-announcement cumulative abnormal return of Microsoft Toll Free No. +44 203 3555 345 Mail Us: help@globalassignmenthelp.com Global Assignment Help offers top notch Assignment Help in UK at best price. We also offer 5% Extra off by ordering through our APP.

  13. Figure 4 Post-announcement abnormal return of Microsoft Figure 5 Pre-announcement cumulative abnormal return of LinkedIn Toll Free No. +44 203 3555 345 Mail Us: help@globalassignmenthelp.com Global Assignment Help offers top notch Assignment Help in UK at best price. We also offer 5% Extra off by ordering through our APP.

  14. Figure 6 Post-announcement abnormal return of LikedIn Figure 7 Post-annoucement cumulative abnormal return of Microsoft Toll Free No. +44 203 3555 345 Mail Us: help@globalassignmenthelp.com Global Assignment Help offers top notch Assignment Help in UK at best price. We also offer 5% Extra off by ordering through our APP.

  15. Figure 8 LinkedIn's post-announcement cumulative abnormal return Relationship with research As per the calculation, it can be seen that before the announcement of acquisition, in the initial period, MSFT’s stock performance tends to increase, but at the closure of announcement, it goes decrease. However, on the other hand, after the announcement, suddenly its stock price moves upward while, thereafter, it dropped down and then fluctuations continuously. Volatile trends in actual and expected return are the reasons for the movement in share’s abnormal return (Sofat & Hiro, 2015). However, its CAR shows a constant movement whether before and after the announcement of acquisition. From the presented graph, it can be seen that actual return of the MSFT Corporation got increased from negative 0.01315 to positive return of 0.0065, while, thereafter, it is showing volatile trend till acquisition. Moreover, on 21st June 2016, actual return suddenly goes to peak level of 0.022369 as stock prices got changed from 50.07 to 51.19. However, after the period, it is continuously decreased to 50.54 on 29 June 2016 (Warren, 2016). During the period of 1st July to 29th July, stock price got improved from 51.16 to 56.58 which show that MSFT’s share price got improved, but still, the rate of growth in the stock prices is fluctuating. Fluctuations in beta value are the main reason behind volatile return as it measures the volatility or systematic risk of a portfolio comparison to the market as a whole. In relation to Microsoft Toll Free No. +44 203 3555 345 Mail Us: help@globalassignmenthelp.com Global Assignment Help offers top notch Assignment Help in UK at best price. We also offer 5% Extra off by ordering through our APP.

  16. Corporation, volatility in NYSE index and its movement is the reason for fluctuating return in the MSFT. Moreover, in comparison to actual return, expected return is increasing or decreasing at lower rate, resulted in fluctuating abnormal and cumulative abnormal return after announcement. However, in context to LinkedIn Corporation, it has been found that cumulative abnormal return (CAR) of LinkedIn was higher. For example, on 3rd June CAR was 36.57 which is continuously decreasing till 13th June. At the same time, abnormal return (AR) is also fluctuating with the passage of time. According to the table, AR on 3 June was .89 which increased on 6th till .90 but on next day again it decreased and reached to 88. Furthermore, the period post merger is showing that AR has been decreased on 14th June to .9066 and on next day minor changes were observed as .9023. This is showing that merger does not have significant impact on magnitude of expected and actual return generated by the corporation. Linkedin already was already having variation in its return which tends to affect overall performance of the business in the marketplace. Apart from this, CAR has been reduced to a great extent after the announcement of merger. This affected performance of the corporation to a great extent. It is because on 14th June CAR was 29.80 but on 1 July it reached to 18.07. Moreover, till the end of July month CAR reduced to .89. Therefore, on the basis of AR and CAR, it can be said that announcement of company has significant impact because initially return was decreasing the amount of variation was less. It can be critically evaluated, that prior announcement of merger both AR and CAR were reducing continuously (Li & Zhang, 2015). However, difference was greater in the reduction of CAR whereas AR was having fluctuating trend. Owing to this, CAR can be considered as the imperative aspect in assessing the impact of merger announcement on overall performance of the firm. Thus, CAR indicates that performance of company is going down which and cumulative abnormal return generated by the firm is showing continuous downward trend. CONCLUSION After examining the fluctuations in stock performance of both the MSFT and LikedIn, it has been examined that after announcement, MSFT’s AR shows a sudden increase in the positive Toll Free No. +44 203 3555 345 Mail Us: help@globalassignmenthelp.com Global Assignment Help offers top notch Assignment Help in UK at best price. We also offer 5% Extra off by ordering through our APP.

  17. abnormal return immediately after announcement and thereafter shows a volatile trend. However, LinkedIn’s share prices is increased after some days of announcement adversely due to higher investors return expectation as compare to actual return. However, on the other hand, both the company’s pre and post announcement shows a constant movement, but still, MSFT’s share price is increasing or decreasing at same rate, whilst, LI’s stock price shows a continuous upward trend. Toll Free No. +44 203 3555 345 Mail Us: help@globalassignmenthelp.com Global Assignment Help offers top notch Assignment Help in UK at best price. We also offer 5% Extra off by ordering through our APP.

  18. REFERENCES Books and Journals Aula, P., 2010. Social media, reputation risk and ambient publicity management. Strategy & Leadership. 38(6). pp.43-49. Smit, H.T. and Trigeorgis, L., 2012. Strategic investment: Real options and games. Princeton University Press. Fraser, J. & Simkins, B. (2010). Enterprise risk management: Today's leading research and best practices for tomorrow's executives (Vol. 3). John Wiley & Sons. Frigo, M.L. & Anderson, R.J. (2011). What Is Strategic Risk Management?.Strategic Finance. 92(10). pp.21. Gordić, D. & et.al., (2010). Development of energy management system–Case study of Serbian car manufacturer. Energy Conversion and Management. 51(12). pp.2783-2790. Li, Y. & Zhang, L. (2015). Short selling pressure, stock price behavior, and management forecast precision: Evidence from a natural experiment. Journal of Accounting Research. 53(1). pp.79-117. Lind, L. & et.al., (2012). Working capital management in the automotive industry: Financial value chain analysis. Journal of purchasing and supply management. 18(2). pp.92-100. McKinney, J.B. (2015). Effective financial management in public and nonprofit agencies. ABC- CLIO. McNeil, A.J., Frey, R. & Embrechts, P. (2015). Quantitative risk management: Concepts, techniques and tools. Princeton university press. Sofat, R. & Hiro, P. (2015). Strategic Financial Management. PHI Learning Pvt. Ltd. Hillier, D., Grinblatt, M. & Titman, S (2011). Financial markets and corporate strategy.McGraw Hill. Ugboro, I.O., Obeng, K. & Spann, O., (2010). Strategic planning as an effective tool of strategic management in public sector organizations: Evidence from public transit organizations. Administration & Society. pp.0095399710386315. Online 4 Reasons why Microsoft wasted $26.2 billion to buy LikedIn. (2016). [Online]. Available through: Toll Free No. +44 203 3555 345 Mail Us: help@globalassignmenthelp.com Global Assignment Help offers top notch Assignment Help in UK at best price. We also offer 5% Extra off by ordering through our APP.

  19. <http://www.forbes.com/sites/petercohan/2016/06/13/4-reasons-microsoft-wasted-26-2-<http://www.forbes.com/sites/petercohan/2016/06/13/4-reasons-microsoft-wasted-26-2- billion-to-buy-linkedin/#c692ce7533d1>. [Accessed on 12th November 2016]. Gara, A. (2016). LinkedIn is the Latest Tech Company To Give Up On The Stock Market. [Online]. Available through: http://www.forbes.com/sites/antoinegara/2016/06/13/linkedin-is-the- latest-fast-growing-tech-company-to-give-up-on-the-stock-market/#8757b1c50bed. [Accessed on 12th November 2016]. Green. J. (2016). [Online]. Available through: http://www.wsj.com/articles/rival-bidding-forced- microsoft-to-raise-its-offer-for-linkedin-1467417326. [Accessed on 12th November 2016]. Center. (2016). [Online]. Available through: Microsoft News https://news.microsoft.com/2016/06/13/microsoft-to-acquire- linkedin/#sm.00003ezf2faw5dgivrm2rktmuj4a5. [Accessed on 12th November 2016]. Warren, T. (2016). Why is Microsoft buying LinkedIn. [Online]. Available through: <http://www.theverge.com/2016/6/13/11920938/microsoft-linkedin-acquisition-why-report> . [Accessed on 12th November 2016]. Toll Free No. +44 203 3555 345 Mail Us: help@globalassignmenthelp.com Global Assignment Help offers top notch Assignment Help in UK at best price. We also offer 5% Extra off by ordering through our APP.

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