Information theory 1 introduction 2 statistical signal modelling random variables and probability distribution joint probability conditional probability and bayes rule statistical independence of wto random variables correlation coe cient 3 amount of information 4 discrete source 5 discrete channel 6 shannons theorem 7 summary 10. Elements of information theory 2nd edition wiley series in telecommunications and signal processing by thomas m. In addition, there will be several papers handed out during the course, particularly for the information on source coding. Merger analysis, industrial organization theory, and merger. Theories of mergers mergers and acquisitions business. Under the managerial selfinterest hypothesis, or private benefits hypothesis, merger and acquisition activity is driven by personal whereby the manageinterestsr obtains and maximizes its welfare at the expense of acquirer shareholders mitchell and lehn, 1990. May 04, 2005 anticipation of these merger opportunities can lead to defensive acquisitions, where managers acquire other firms to avoid losing private benefits if their firms are acquired, or positioning acquisitions, where firms position themselves as more attractive takeover targets to earn takeover premia. We wouldappreciate anycomments, suggestions andcorrections to thissolutionsmanual. Chapter 2 conceptual framework of merger and acquisition.
Given the increasing amount of merger activity, any insights that promote a greater understanding. At the time, the course was so challenging for me that i came away with a sour view of information theory altogether. A merger in simple words refers to combining of two companies into one. Introduction of merger and acquisition management essay. Introduction to communications engineering, 2nd edition. Ross defines this form as a market that fully reflects all public information, making an investor unable to. Basis for horizontal merger it may be social gain as well as private gain. Theories in merger and acquisition mergers and acquisitions. The next theory of the efficient market hypothesis is the semistrong form. Jul 08, 2016 according to this theory if the management of firm a is more efficient than the management of firm b and after firm a acquires firm b the efficiency of firm b is brought upto the level of efficiency of firm a. Since the number of bipartitions for the system with nelements is. Information theory deals with three quite distinct forms of coding. The second is a version of secret sharing in the algorithmic setting. However, a few years ago i picked up the 2nd edition of the text and began my own study of information theory, using only the text itself.
Integrated information theory of consciousness iit considers that. Summary of legal aspects of mergers, consolidations, and. The theory explains that even though its real value may be unknown, the price will wander around its intrinsic value, making the market efficient. The importance of mergers and acquisitions in todays economy. Entropy, relative entropy and mutual information 23 now for su. Chapters reorganized to improve teaching 200 new problems new material on source coding, portfolio theory, and feedback. Elements of information theory pdf 2nd edition of this fundamental textbook maintains the books tradition of clear, thoughtprovoking instruction. Aug 12, 1991 at the time, the course was so challenging for me that i came away with a sour view of information theory altogether. According to the this theory, the probability of mergers may serve to overcome with the agency problem between shareholders and managers.
In light of the trend towards mergers and the reported high rate of failure, it seems that organizational leadership during the merger experience is an important consideration. The internalization theory described in box 1 suggests that corporations attempt to acquire others because they want to procure intangible assets that generally give them a competitive advantage. We can combine the fermat test and the squareroot test by choosing x. In the exxonmobil merger, synergy and efficiency objectives were promised and achieved. Sold by unleashinc and ships from amazon fulfillment. Efficient algorithms for searching the minimum information. The two least valuable companies are merged, thus form ing a list of m. All the essential topics in information theory are covered in detail, including entropy, data compression, channel capacity, rate distortion, network information theory, and hypothesis testing. This relation establishes the link of post merger performance improvements towards shareholder value creation. Elements of information theory linkedin slideshare.
Merger and acquisition activity in the united states has typically run in cycles, with peaks coinciding with periods of strong business growth. Shmuel leshem empirical evidence shows that termination fees lockups in merger agreements of public companies discourage competition for the target company but do not necessarily harm target shareholders. A reference point theory of mergers and acquisitions. Elements of information theory, 2nd ed by thomas m. Thomas, elements of information theory, 2nd edition, wiley, 2006. Lecture notes applied digital information theory ii james l. Acquisition and merger process through the eyes of employees. Accordingly, the overvaluation theory posits that more acquisitions will happen in periods of bubbles. N be a collection of random variables indexed by a set n of n elements. Willig department of justice merger analysis, industrial organization theory, and merger guidelines the leadership of the antitrust division of the u.
Three major types of merger motivations were identified by berkovitch and narayanan 1993. Efficiency theories differential efficiency operating synergy. Elements of information theory, second edition, 2006. Now, we can combine the above findings with the properties of a certain. This relation establishes the link of postmerger performance improvements towards shareholder value creation. Second, we assume that there is a regime shift that creates potential synergies. Tom cover joy thomas durand 121, information systems lab stratify. What theory explains the relationship between mergers and. Use features like bookmarks, note taking and highlighting while reading elements of information theory. Elements of information theory 2nd edwiley 2006 thomas m. Moreover, although the buying firm may be a considerably different organization after the merger, it retains. In the second case, the associated stochastic process is timeindependent thus. Elements of information theory pdf 2nd edition of this fundamental textbook maintains the books tradition of clear, thoughtprovoking.
It is concluded that post merger performance improvements prove the existence of merger induced synergy. Elements of information theory 2nd edition solutions pdf download. Please note that the solutions manual for elements of information theory is ed and any sale or distribution without the permission of the authors is not permitted. Summary of legal aspects of mergers, consolidations, and transfers of assets the duty that is most pertinent to the approval of mergers and consolidations, however, is the duty of care. Elements of information theory 2nd edition, kindle edition. Cover pdf book,free download the latest edition of this classic is updated with new problem sets and materialthe second edition of this fundamental textbook maintains the books ebookmela. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. In a merger, the acquiring company assumes the assets and liabilities of the merged company. Elements of information theory 2nd edition pdf ready for ai. Elements of information theory 2nd edition wiley series in. Information theory, inference and learning algorithms by david j. While the jones 2 book does not provide a basket full of lemmas and deep insight for doing research on quantifying information, it is a very accessible, tothepoint and selfcontained survey of the main theorems of information theory, and therefore, imo, a good place to start.
Cover is a past president of the ieee information theory society, a fellow of the ieee and the institute of mathematical statistics, and a member of the national academy of engineering and the american academy of arts. Operating synergy types and their impact on postmerger. We wrote this book with the intent of teaching students not just the law and theory behind mergers and acquisitions, but the practice of the art itself. In the years since the first edition of the book, information theory. Elements of information theory 2nd edition wiley series in telecommunications and signal processing 9780471241959 by cover, thomas m thomas, joy a. Elements of information theory fundamentals of computational. For such sequences, k n is close to p and hence there exists a. All the essential topics in information theory are covered in detail, including. Results also support the common expectation that organizational complexity is a. The failure to address the issues that concern merger and acquisition impacts the new and current organization very negatively at the stage of post merger in two levels. Printed edition of the special issue published in entropy. Apr 02, 2009 our theory of mergers is able to reconcile both of these stylized facts. Elements of information theory, 2nd edition thomas m. The importance of mergers and acquisitions in todays.
One of the key predictions of agency theory is that low managerial ownership in the acquirer rm leads to poor postmerger performance. Cover, phd, is professor in the departments of electrical engineering and statistics, stanford university. The chief argument is that the presence of a lockup. Anticipation of these merger opportunities can lead to defensive acquisitions, where managers acquire other firms to avoid losing private benefits if their firms are acquired, or positioning acquisitions, where firms position themselves as more attractive. In this theory, transactions are driven by stock market valuations of the merging firms. Broadly, the studies find and the theory puts forth that there is a higher consequence arising from preexisting structural characteristics, over those that are cultural. This article presents a signaling theory consistent with this evidence and considers the theorys normative implications. Wall street investment bankers play a huge role in creating one large. Mergers and acquisitions edinburgh business school. Pdf elements of information theory, 2nd ed by thomas m. I greatly appreciated their development of asymptotic typicality and rate distortion. According to this theory if the management of firm a is more efficient than the management of firm b and after firm a acquires firm b the efficiency of firm b is brought upto the level of efficiency of firm a. Elements of information theory second edition thomas m.
According to differential theory of merger, one reason for a merger is that if the management of a company x is more efficient than the management of the company y than it is better if company x acquires the company y and increase the level of the efficiency of the company y. It is concluded that postmerger performance improvements prove the existence of mergerinduced synergy. Rhodeskropf, robinson and viswanathan 2005 provide empirical evidence consistent with the market valuations theory of merger waves. Companies in all industries have grown at lightning speed, in part because of an aggressive merger and acquisition strategy. Introduction to mergers and acquisitions mergers, acquisitions and takeovers occur in the worlds corporate financial sector. The fundamental assumption of the model is that financial markets are inefficient, so some firms are valued incorrectly. For more information about wiley products, visit our web library of congress cataloginginpublication data.
The failure to address the issues that concern merger and acquisition impacts the new and current organization very negatively at the stage of postmerger in two levels. Elements of information theory 2nd edition solutions pdf. Cover is a past president of the ieee information theory society, a fellow of the ieee and the institute of mathematical statistics, and a member of the national academy of engineering and the american academy of arts and. Oct 10, 20 for more information about wiley products, visit our web library of congress cataloginginpublication data. First, we assume that managers derive private benefits from operating a firm in addition to the value of any ownership share of the firm they have. One of these two levels is the individual level and the reactions of the individual employees are insecurity, powerlessness, alienation, a drop in productivity, loss of energy. Information theory and its applications telenor group. Readers are provided once again with an instructive mix of mathematics, physics, statistics, and information theory. The latest edition of this classic is updated with new problem sets and material the second edition of this fundamental textbook maintains the books tradition of clear, thoughtprovoking instruction. One around the turn of the twentieth century, the second peaking in 1929 the third in the latter half. Second, consider the following partitioned probability distribution q.
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