Do Long-Term Shareholders Benefit From Corporate Acquisitions?
Using 947 acquisitions during 1970-1989, this article finds a relationship between the postacquisition returns and the mode of acquisition and form of payment. During a five-year period following the acquisition, on average, firms that complete stock mergers earn significantly negative excess return...
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| Veröffentlicht in: | The Journal of finance (New York) 1997-12, Vol.52 (5), p.1765-1790 |
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| container_end_page | 1790 |
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| container_issue | 5 |
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| container_title | The Journal of finance (New York) |
| container_volume | 52 |
| creator | LOUGHRAN, TIM VIJH, ANAND M. |
| description | Using 947 acquisitions during 1970-1989, this article finds a relationship between the postacquisition returns and the mode of acquisition and form of payment. During a five-year period following the acquisition, on average, firms that complete stock mergers earn significantly negative excess returns of -25.0 percent whereas firms that complete cash tender offers earn significantly positive excess returns of 61.7 percent. Over the combined preacquisition and postacquisition period, target share-holders who hold on to the acquirer stock received as payment in stock mergers do not earn significantly positive excess returns. In the top quartile of target to acquirer size ratio, they earn negative excess returns. |
| doi_str_mv | 10.1111/j.1540-6261.1997.tb02741.x |
| format | Article |
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| fulltext | fulltext |
| identifier | ISSN: 0022-1082 |
| ispartof | The Journal of finance (New York), 1997-12, Vol.52 (5), p.1765-1790 |
| issn | 0022-1082 1540-6261 |
| language | eng |
| recordid | cdi_proquest_miscellaneous_839099870 |
| source | Jstor Complete Legacy; Wiley Online Library Journals Frontfile Complete |
| subjects | Abnormal returns Acquisitions & mergers Business structures Cash Cash payments Corporate acquisitions Corporate mergers Efficiency Finance Impact analysis Long term Mergers Payments Rates of return Shareholders Shareholders wealth Stock exchanges Stock market delistings Stock returns Stockholders Studies Take-overs Target acquisitions Tender offers Undervalued stock |
| title | Do Long-Term Shareholders Benefit From Corporate Acquisitions? |
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