Measurement of merger gains using post-merger data is sifficult and highly conjectural. Thus, it is difficult to test merger theories and to estimate merger gains using such data. The approach in the current paper is to use pre-merger data in an economic model, in order to test the managerial...

The choice of model of normal returns in event studies has been widely discussed in the literature. While researchers frequently continue to use an array of alternatives, there is currently some tendency to favour cruder but simpler mean- or market-adjusted returns models. This paper presents a...