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Yohanes WidiSono(1006794495)M&A Course

2012

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Empo!ee S"o#$ %nership 'ans

(ES%'s)eni"ion* ened #on"ri+u"ion empo!ee +ene" pension pans

desi,ned "o in-es" a" eas" 50. o/ i"s asse"s in

uai/!in, empo!er se#uri"ies ES%'s ma! +e S"o#$ +onus pans Com+ined s"o#$ +onus pans and mone! pur#hase pansMa! aso pro-ide /or empo!ee #on"ri+u"ionsMa! represen" por"ion o/ pro"sharin, pan

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ES%'s dieren" /rom* Empo!ee s"o#$ pur#hase pans Ena+e empo!ees "o +u! #ompan! s"o#$ a" dis#oun" 'ar"i#ipa"ion o/ a or mos" empo!ees Shares sod a" 35. or more o/ pre-aiin, mar$e" pri#e o/

shares

Ee#u"i-e in#en"i-e pro,rams 'ro-ided main! "o "op mana,emen" and o"her $e!

empo!ees 'ar" o/ ee#u"i-e #ompensa"ion pa#$a,eso "!pes n#en"i-e s"o#$ op"ions

S"o#$ appre#ia"ion ri,h"s

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!pes o/ ES%'s e-era,ed 8e#o,nied under E8SA in 1974 e-era,ed ES%' opera"ion

h""p*::;esopasso#ia"ion;or,:a+ou":a+ou"

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e-era,a+e 8e#o,nied under E8SA 'an au"horied +u" no" reuired "o +orro /unds

=one-era,ed 8e#o,nied under E8SA 'an does no" pro-ide /or +orroin, o/ /unds

Essen"ia! s"o#$ +onus pan

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a #redi"s ES%'s 'ro-ided +! a 8edu#"ion A#" o/ 1975> $non as a

8edu#"ion A#" ES%'s or 8AS%'s n addi"ion "o re,uar in-es"men" #redi" in eis"en#e a"

"ha" "ime? addi"iona in-es"men" #redi" o/ 1. o/uaied in-es"men" in pan" and euipmen" #oud +eearned +! #on"ri+u"ion o/ "ha" amoun" "o ES%'

n 1976? addi"iona 0;5. #redi" added /or #ompanies"ha" ma"#hed #on"ri+u"ions o/ empo!ees o/ sameamoun" "o 8AS%'

n 193@? +asis /or #redi" as #han,ed /rom pan" andeuipmen" in-es"men"s "o 0;5. o/ #o-ered pa!ro pans #aed pa!ro+ased ES%'s or 'AYS%'s

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'er/orman#e o/ ES%'s ES%'s as a "a$eo-er de/ense 'oaroid -s; Shamro#$ Bodin,seaare /reeeou" a pre-en"s hos"ie a#uirer

/rom mer,in, i"h "ar,e" uness 35. o/ "ar,e"Ds -o"in,

shares are "endered 'oaroid #rea"ed ES%' hi#h pur#hased 14. o/ i"s

#ommon s"o#$ Shamro#$ una+e "o o+"ain ne#essar! 35. in 1933

"ender oer

A/"er 'oaroid? ES%'s +e#ame ide! used asan"i"a$eo-er s"ra"e,!

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ES%'s -ersus a"erna"i-e me"hods o/ raisin,/unds Corpora"e nan#in, ES%'s pro-ide +ene"s mida! +e"een de+" and

eui"! nan#in, Can +rin, addi"iona de+" #apa#i"! "o hi,h!

e-era,ed rmse+" in"eres" epense under e-era,ed ES%' had

+een oer "han s"rai,h" de+" nan#in, henin"eres" e#usion as permi""ed

'ro-ide mar$e" /or eui"! nan#in, /or #ose! hed

rms

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se/u de-i#e /or "rans/errin, onershipMos" e-era,ed ES%' /unds used "o +u! +a#$ s"o#$

/rom eis"in, sharehoders and no" /or #api"aepansion

Con"ro o/ s"o#$

Mana,emen" #on"inues "o #on"ro ES%' Empo!ees ho ish "o main"ain s"a"us uo or ho

do no" an" an ou"side #ompan! "o "a$e o-er rm?more i$e! "o suppor" mana,emen" hen ES%'s areused as "a$eo-er de/ense

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E#onomi# diu"ion ES%'s po"en"ia! "rans/er sharehodersD ea"h "o

empo!ees / ES%' #on"ri+u"ion no" ose" +! redu#"ion in o"her

pa!men"s "o or$ers? empo!ees ,ain a" epense o/

sharehoders An! +orroin, +! ES%' uses some de+" #apa#i"! o/

rm

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Eui"! posi"ion diu"ion n/reuen" use o/ ES%' oans su,,es"s "ha" non"a

#os"s o/ usin, ES%' are hi,h ar,e eui"! s"a$e "ha" ,oes "o #on"ri+u"in,

empo!ees si,ni#an"! redu#es eui"! s"a$e "o

mana,ers and +u!ou" promo"er 'o"en"ia ad-an"a,e* Shares #an +e sod a" hi,her

pri#es o-er "he !ears as ES%' #on"ri+u"es "o hi,herearnin,s "hrou,h "a ad-an"a,es and impro-edmo"i-a"ions o/ empo!ees

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Comparison i"h pro" sharin, (Mi"#he? 1995) e/erred pro" sharin, pans in 16. o/ a rms

#ompared i"h on! @. /or ES%'s ES%'Ds #o-era,e o/ or$ers rea"i-e! sma despi"e

"a su+sidies =oninsured pri-a"e pensions hed F1;2 "riion in

eui"! in 1991 #ompared i"h eui"! hodin,s o/ F47+iion /or ES%'s

Compared "o o"her pension pans? ES%'s ha-e esserimpa#" on hepin, or$ers a#hie-e eui"! hodin,s

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'ro" sharin, has e#onomi# ad-an"a,es o-erES%'s Gei+ii"! in or$er #ompensa"ion impro-es

s"a+ii"! o/ empo!men" ES%' does no" add "o pa! Hei+ii"! +e#ause i"

in-o-es a /orm o/ +onus "o empo!men"

%ners ha-e in#en"i-e "o o-er-aue s"o#$ assi,ned"o empo!ees in ES%' pans in order "o in#rease "asu+sid!

'ro" sharin, s#hemes are more or"h! o//a-ora+e "a "rea"men" sin#e "he! pro-ide

ma#roe#onomi# +ene"s

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Ee#"s on #ompan! produ#"i-i"! ES%' and s"o#$ -o"in, ri,h"sMos" s"udies indi#a"e ES%'Ds s"o#$ onership

per#en"a,es o/ 10. or ess Io"in, ri,h"s asso#ia"ed i"h s"o#$ o/ ES%' a##oun"s

ma! +e eer#ised +! pan "rus"ees (usua! #ompan!mana,emen") i"hou" inpu" +! par"i#ipan"s

ES%'s #an +e used +! mana,emen" "o o+"ain "a+ene"s i"hou" sharin, #on"ro i"h empo!ees

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Jenera A##oun"in, %K#e s"ud! (1937)=o si,ni#an" ,ains in ei"her pro"a+ii"! or

produ#"i-i"! Si,ni#an" impro-emen" in ,ro"h ra"e o/ saes in one

s"ud!=o si,ni#an" impro-emen" in ,ro"h ra"e o/

empo!men"

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'ar$ and Son, (1995)%n a-era,e? rms i"h ES%'s impro-e per/orman#e Sampe rms par"i"ioned in"o rms i"h ar,e

ou"side +o#$hoders (+o#$ rms) and rms i"hou"(non+o#$ rms) mpro-emen" in per/orman#e on! in +o#$ rms Gor non+o#$ rms? ne,a"i-e rea"ion +e"een /ra#"ion

o/ onership hed +! ES%'s and #han,es inper/orman#e

=o s!s"ema"i# rea"ionship /or +o#$ rms

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Con"e? Lasi? ruse? and Nampani (1996)

8e"urns o/ rms i"h ES%'s si,ni#an"! hi,her "han#ompara+e nonES%' #ompanies

Ginan#ia re"urns de#ine a/"er #ompanies adop"ES%'s

8esu"s #onsis"en" i"h ES%'s used as "a$eo-er

de/enses Adop"ion o/ ES%'s in ar,e #ompanies oers

nan#ia re"urns +u" no si,ni#an" ee#" in smaerrms

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S!s"ema"i# s"udies o/ ES%'s in ;S; do no"do#umen" per/orman#e impro-emen" Ane#do"a e-iden#e o/ posi"i-e ee#"s on

indi-idua #ompanies? e;,;? ni"ed Airines Man! #ases here mana,emen" has +een

uniin, "o ,ran" empo!ees /u sharehoderri,h"s hen ES%'s are /ormed

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Mas"er imi"ed 'ar"nerships(M's)

Lusiness or,ania"iona /orms in ,enera 'roprie"orships and par"nerships

Mos" numerousMos"! sma +usinesses

Corpora"ionsominan" in "erms o/ "o"a asse"s

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Gour ad-an"a,es in raisin, ar,e sums o/ mone! imi"ed ia+ii"! /or sharehoders nimi"ed i/e %nership di-ided in"o man! shares imi"s ris$

eposure

Shares /ree! "rada+e /or iuidi"!? di-ersi#a"ion?"rans/era+ii"! o/ onership

M's rea"i-e! ne /orm o/ +usinessor,ania"ion

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Mas"er imi"ed 'ar"nerships

!pe o/ imi"ed par"nerships hose in"eres"s aredi-ided in"o uni"s "ha" are "raded on or,aniede#han,es

Girs" de-eoped in oi and ,as indus"r! Some ad-an"a,es ni" "rada+ii"! simiar "o s"o#$ imi"ed ia+ii"! (/or imi"ed par"ners) Con"inui"! o/ i/e=o dou+e "aa"ion o/ +usiness earnin,s

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h""p*::;Opmor,an;#om:"ss:Jenera:Mas"er

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Jenera par"ner o/ M's Jenera mana,er (par"ner) o/ M's has unimi"ed

ia+ii"! Iir"ua! au"o#ra"i# poer iK#u" "o #han,e ,enera par"ner in a+sen#e o/

pro-a+e /raud

Ai,nmen" o/ in"eres"s +e"een ,enera par"nerand pu+i# uni" hodersMana,emen" in#en"i-e /ees%nership o/ si,ni#an" num+er o/ imi"ed

par"nership uni"s

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!pes o/ M's 8oup M's

Com+ine eis"in, imi"ed par"nerships in"o onepu+i#! "raded par"nership

Girs" "!pe o/ M's or,anied> +e,an in oi indus"r!+! Apa#he 'e"roeum Compan! in 1931

'ro-ide iuidi"! /or non"raded imi"ed par"nerships=a"ure o/ roup Le/ore roup? "here are a num+er o/ imi"ed par"nerships in

eis"en#e Jenera par"ners en"er in"o a,reemen" "o #om+ine a num+er

o/ pre-ious! sponsored imi"ed par"nerships> in re"urn /or

"heir od shares? uni"s in ne M' are issued A/"er M' has +een /ormed? "here is a ,enera par"ner and

uni"s hi#h are oned +! imi"ed par"ners> uni"s ma! "radeon s"o#$ e#han,e or o-er "he #oun"er

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8oou" (spino) M'sGormed +! a #orpora"ionDs #on"ri+u"ion o/ opera"in,

asse"s in e#han,e /or ,enera and imi"ed

par"nership in"eres"s in M'Sod on a !ied #omparison +asisGirs" roou" M' #rea"ed +! rans#o Corp in 193@=a"ure o/ roou"

Corpora"ion hods a num+er o/ +usiness se,men"s Corpora"ion pa#es asse"s o/ one or more o/ i"s +usiness

se,men"s in"o M' A-oid dou+e "aa"ion o/ #orpora"e di-idends Es"a+ish a ne -aue on under-aued asse"s

M' "rans/ers M' uni"s "o #orpora"ion hi#h in "urndis"ri+u"es "hem "o i"s sharehoders

S"o#$hoder hod s"o#$ in #orpora"ion and on uni"s in M' Corpora"ion #oud se por"ion or a o/ uni"s "o ou"side pu+i#

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S"ar"up (ne issue? or a#uisi"ion) M's

Gormed +! a par"nership "ha" is ini"ia! pri-a"e!hed +u" oers i"s in"eres"s "o "he pu+i# in order"o nan#e in"erna ,ro"h

=a"ure o/ s"ar"up Eis"in, en"i"! "rans/ers asse"s "o M'

Mana,emen" #ompan! ma! +e in-o-ed "ha" pro-idesser-i#es "o M' and pro+a+! i +e i"s ,enera par"ner

n re"urn? mana,emen" #ompan! re#ei-es #er"ainper#en"a,e o/ #ash Hos o/ M'

Jenera par"ner does no" ha-e "o hod uni"s in order "ore#ei-e in#ome