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Are mergers and acquisitions significant events that develop informativeness? Is the informativeness process the same … contradictory. To answer to these questions we use the concept of informativeness to assess whether acquisitions improve the private … information content of stock prices. We consider a sample of mergers and acquisitions in the US and Europe over the 2000 …
Persistent link: https://www.econbiz.de/10011269167
Do shareholders of acquiring companies profit from acquisitions, or do acquiring CEOs overbid and destroy shareholder …
Persistent link: https://www.econbiz.de/10009209848
Mergers and acquisitions activity at global level could begin during 2014. Confidence in the economic environment, the … on mergers and acquisitions market. However, caution still dominate this area and this is understandable, given the … diminishing returns, mergers and acquisitions activity may be the only practical way of increasing for companies. …
Persistent link: https://www.econbiz.de/10010814391
This paper investigates the motives for acquisitions in the UK. Standard event study methodology is inadequate to … distinguish between different motives for acquisitions in any sample. Berkovitch and Narayanan (1993) propose a different … gain and total gain to distinguish acquisitions driven by efficiency from those driven by agency motives. To differentiate …
Persistent link: https://www.econbiz.de/10004980100
It is commonly perceived that firms do not want to be outsiders to a merger between competitor firms. We instead argue that it is beneficial to be a non-merging rival firm to a large horizontal merger. Using a sample of mergers with expert-identification of relevant rivals and the event-study...
Persistent link: https://www.econbiz.de/10005123810
It is commonly perceived that firms do not want to be outsiders to a merger between competitor firms. We instead argue that it is beneficial to be a non-merging rival firm to a large horizontal merger. Using a sample of mergers with expert-identification of relevant rivals and the event-study...
Persistent link: https://www.econbiz.de/10005064819
It is commonly perceived that firms do not want to be outsiders to a merger between competitor firms. We instead argue that it is beneficial to be a non-merging rival firm to a large horizontal merger. Using a sample of mergers with expert-identification of relevant rivals and the event-study...
Persistent link: https://www.econbiz.de/10005064820
This paper proposes and tests an explanation as to why rational managers seeking to maximize shareholder value can pursue value-decreasing mergers. It can be optimal to overpay for a target firm and decrease shareholder value if the loss is less than in an alternative where the merger is...
Persistent link: https://www.econbiz.de/10005190742
This paper investigates the short-run price adjustment around the acquisition announce-ment <p> and the long-run upward bias of the cross-sectional average buy-and-hold returns. <p> We apply the geometric Brownian motion model to decompose the cross-sectional ave r-age <p> long-run returns into mean...</p></p></p>
Persistent link: https://www.econbiz.de/10005419269
Between 1990 and 2002 a wave of takeovers was observed in the North American and European energy utilities market. We analyze the impact of these takeovers on market power, studying 70 takeovers of US-American and 69 takeovers of German energy utilities by applying event study methodology. Stock...
Persistent link: https://www.econbiz.de/10005616509