Merger drivers and the change of bidder shareholders' wealth

Sheng Yung Yang, Lin Lin*, De Wai Chou, Hsiao Chen Cheng

*此作品的通信作者

研究成果: 雜誌貢獻期刊論文同行評審

1 引文 斯高帕斯(Scopus)

摘要

A growing number of merger studies concern the causality of firm performance and merger activity in the last decade, but with mixed results. Assuming semi-strong efficiency, this article argues that firms with good stock performance are more likely to acquire other firms. With 412 US-listed bidders, results from the event study method clearly support our hypothesis by showing a strong upward movement of cumulative abnormal returns across groups in the pre-merger period. Results also suggest that bidders of different characteristics have different preference for payment methods and thus the market reactions to them are different, despite the noise that frequently accompanies merger activity. These empirical outcomes are important to both investors and financial services companies including investment banks when knowledge about the market reactions to their clients in mergers is required.

原文英語
頁(從 - 到)851-871
頁數21
期刊Service Industries Journal
30
發行號6
DOIs
出版狀態已發佈 - 2010 6月
對外發佈

ASJC Scopus subject areas

  • 策略與管理
  • 技術與創新管理

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