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.
|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||International Symposium on Empirical Accounting Research (6th : 2007)|
|Period||15/12/07 → 16/12/07|