The Underperformance of bidder companies

Ben Lau, Alex Proimos

Research output: Contribution to conferencePaper


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 languageEnglish
Number of pages23
Publication statusPublished - 2007
EventInternational Symposium on Empirical Accounting Research (6th : 2007) - Xiamen, China
Duration: 15 Dec 200716 Dec 2007


ConferenceInternational Symposium on Empirical Accounting Research (6th : 2007)
CityXiamen, China


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