Mergers and acquisitions of non-financial firms in Europe: the case of the Athens Stock Exchange

This study examines whether mergers and acquisitions create value for shareholders in the Athens Stock Exchange, during an extremely volatile period. The results indicate, on average, statistically insignificant investor reaction around merger announcements. However, further analysis suggests that i...

Ausführliche Beschreibung

Gespeichert in:
Bibliographische Detailangaben
Veröffentlicht in:Applied economics letters 2007-06, Vol.14 (7), p.523-527
Hauptverfasser: Spyrou, Spyros, Siougle, Georgia
Format: Artikel
Sprache:eng
Schlagworte:
Online-Zugang:Volltext
Tags: Tag hinzufügen
Keine Tags, Fügen Sie den ersten Tag hinzu!
Beschreibung
Zusammenfassung:This study examines whether mergers and acquisitions create value for shareholders in the Athens Stock Exchange, during an extremely volatile period. The results indicate, on average, statistically insignificant investor reaction around merger announcements. However, further analysis suggests that investors react negatively to announcements by bidder firms in the food and fish farm sectors, and positively to announcements in the commercial/advertising and technology sectors. There is also evidence that information arrives at the market a few days before the official announcement. Contrary to earlier empirical evidence, insignificant returns are reported for target firms.
ISSN:1350-4851
1466-4291
DOI:10.1080/13504850500406972