We study 154 domestic mergers in Japan during 1977 to 1993. In contrast to U.S. evidence, mergers are viewed favorably by investors of acquiring firms. We document a two-day acquirer abnormal return of 1.2 percent and a mean cumulative abnormal return of 5.4 percent for the duration of the...

We examine bidder returns in Japanese mergers from 1976 to 1990. Using a comprehensive sample of 104 Japanese bidders, we find that shareholders of Japanese bidders experience a significant positive abnormal return of 1.41%. Bidder returns are higher when firms acquire targets in the same...