Purpose – This paper aims to illuminate the issue of whether there is a significant difference between long-term abnormal return of acquirers across industries, and which industries achieve better returns. Design/methodology/approach -This paper investigates whether there is a significant...

This paper discusses sources of value in acquisitions. Using the discounted cash-flow valuation method, we develop a model that explains sources of economic gains that can be attained through mergers. The model identifies three major sources of value in mergers, each of which can reduce or...

This study investigates sources of value in mergers and acquisitions. While much emphasis is put on operating synergies from acquisitions the evidence provided in this study shows that the difference between the WACCs of the combined firm and the merging firms may have a significant role on the...