This thesis presents an exploratory study on mergers of Korean enterprises. The purpose of this thesis is to investigate the motives, process, and effects of mergers in Korean situation.
This exploratory study is done by two steps: First, a investigation into financial traits of the firms involved with mergers in the period of 1973-1981 is made. It is found that in Korea, on the contrary to the U.S.A., firms merge firms with poor profitability and high leverage ratio, and that there is no release of synergic effects. Second, a more closer investigation into the motives, process, and effects of mergers in Korean situation is made by somewhat detailed case-studies of mergers in the period of 1980-1982.1.
Eight tentative hypotheses are formulated from these investigations. These hypotheses may provide a basis for a further study on the mergers in Korean situation.