Abstract
This study investigates bidder and target returns around a Merger and Acquisition (M&A) announcement. Our empirical evidence finds that the cumulative average abnormal returns to bidder shareholders following a M&A announcement are highly negative for equity only financed offers; particularly in comparison to cash financed bids. Moreover, we highlight the implications to legal and finance practitioners in M&A advising of public companies in light of the highly significant evidence that bidder companies fail to receive subsequent share price gains in the short term (less than sixty days) surrounding an offer announcement.
Original language | English |
---|---|
Number of pages | 23 |
Publication status | Published - 2007 |
Event | International Symposium on Empirical Accounting Research (6th : 2007) - Xiamen, China Duration: 15 Dec 2007 → 16 Dec 2007 |
Conference
Conference | International Symposium on Empirical Accounting Research (6th : 2007) |
---|---|
City | Xiamen, China |
Period | 15/12/07 → 16/12/07 |