Journal article
Do Long-Term Shareholders Benefit From Corporate Acquisitions?
The Journal of finance (New York), Vol.52(5), pp.1765-1790
12/1997
DOI: 10.1111/j.1540-6261.1997.tb02741.x
Abstract
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.
Details
- Title: Subtitle
- Do Long-Term Shareholders Benefit From Corporate Acquisitions?
- Creators
- Tim LoughranAnand M. Vijh
- Resource Type
- Journal article
- Publication Details
- The Journal of finance (New York), Vol.52(5), pp.1765-1790
- Publisher
- American Finance Association
- DOI
- 10.1111/j.1540-6261.1997.tb02741.x
- ISSN
- 0022-1082
- eISSN
- 1540-6261
- Language
- English
- Date published
- 12/1997
- Academic Unit
- Finance
- Record Identifier
- 9984380399502771
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