The Impact of Takeover Rumours on Rival Firms PDF Download
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Author: Xiaoyang Sha
Publisher:
ISBN:
Category :
Languages : en
Pages : 37
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Book Description
This paper examines the takeover rumour effects of potential U.S. acquisition targets on rival firms. On average, rival firms earn positive abnormal returns during the rumour period, despite the type and outcome of the rumour. Specifically, rumours concerning industry takeover activities and those regarding targets that undergo financial distress provide higher rival firm returns around the rumour date, while rumours that are seconded by analysts tend to lead to negative abnormal returns for rival firms. Rivals that subsequently become acquisition targets within one year following the rumour experience significantly higher abnormal returns. In related tests, we find that rumours proven to be credible, rumours denied by targets, rumours driven by insiders, rumours involving the PE finder, and rumours containing multiple informative signals are significant predictors of future rival acquisitions.
Author: Xiaoyang Sha
Publisher:
ISBN:
Category :
Languages : en
Pages : 37
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Book Description
This paper examines the takeover rumour effects of potential U.S. acquisition targets on rival firms. On average, rival firms earn positive abnormal returns during the rumour period, despite the type and outcome of the rumour. Specifically, rumours concerning industry takeover activities and those regarding targets that undergo financial distress provide higher rival firm returns around the rumour date, while rumours that are seconded by analysts tend to lead to negative abnormal returns for rival firms. Rivals that subsequently become acquisition targets within one year following the rumour experience significantly higher abnormal returns. In related tests, we find that rumours proven to be credible, rumours denied by targets, rumours driven by insiders, rumours involving the PE finder, and rumours containing multiple informative signals are significant predictors of future rival acquisitions.
Author: Mozhi Wang
Publisher:
ISBN:
Category :
Languages : en
Pages : 31
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Book Description
This paper examines 680 initial U.S. takeover rumours which name both bidder and target firms from 2002 to 2011. We find that rumours attributed to an insider and those indicating a positive synergy would result from a takeover are significant predictors of future takeover announcements between these rumoured firms. Interestingly, these same rumour types are also significantly related to pre-rumour bidder firm returns. In addition, bidding firm rumour date returns are significantly higher for smaller firms, in line with the literature for bidding firm announcement date effects. Finally, for the subsample of rumoured firms which do engage in the rumored takeover, we find that the longer the interval between the rumour date and announcement date, the more positive the announcement date return. In sum, we interpret results as evidence confirming hypotheses that the anticipation of takeovers should be accounted for in the analysis of announcement date effects.
Author: Bjørn Espen Eckbo
Publisher: Academic Press
ISBN: 0123847451
Category : Business & Economics
Languages : en
Pages : 863
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Book Description
A selection of republished corporate finance articles and book chapters that can serve as an advanced corporate finance supplementary text for courses that use no textbooks. Combining convenience and an affordable price with retypeset pages and a high-quality index, the 600 pages of volume one, Takeover Activity, Valuation Estimates and Merger Gains, focus on classical issues such as the existence and source of merger waves, empirical estimates of takeover announcement returns and the division of takeover gains between bidders and targets, and tests for potential sources of takeover gains (primarily involving estimation of industry wealth effects of takeovers), introducing students to modern scientific evidence about corporate takeovers. Including an index and new introduction, this volume will simplify and facilitate students' interaction with new concepts and applications. - Provides a status report about modern scientific evidence on corporate takeovers - Exposes students to new methods and empirical evidence while reading high quality primary material - Offers a concise and cost-efficient package of journal and book articles for advanced corporate finance students
Author: John M. Stopford
Publisher: Cambridge University Press
ISBN: 9780521423861
Category : Business & Economics
Languages : en
Pages : 340
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Book Description
In this theoretically original work, two distinguished authors explore the mutual interdependence of states and firms throughout the world. They show how global structural changes - in finance, technology, knowledge and politics - often impel governments to seek the help and cooperation of managers of multinational enterprises. Yet, as Professors Stopford and Strange demonstrate, this is constrained by each country's economic resources, its social structures and its political history. Based on grass-roots research into the experience of over 50 multinationals and more than 100 investment projects in three developing countries- Brazil, Malaysia and Kenya - the authors develop a matrix of agendas. They present the impact on projects of the multiple factors affecting the bargaining relationships between the government and the foreign firm at different times and in a variety of economic sectors. In conclusion they offer some guidelines for actions to both governments and firms and some points to future interdisciplinary research.
Author: Husayn K. Shahrur
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Book Description
We examine the wealth effects of horizontal takeovers on rivals of the merging firms, and on firms in the takeover industry's supplier and customer industries. Inconsistent with the collusion and buyer power motives, we find significant positive abnormal returns to rivals, suppliers, and corporate customers for the subsample of takeovers with positive combined wealth effect to target and bidder shareholders. Overall, our findings suggest that the average takeover in our sample is driven by efficiency considerations. However, we find evidence suggesting that horizontal takeovers increase the buyer power of the merging firms if suppliers are concentrated.
Author: Fred S. McChesney
Publisher: University of Chicago Press
ISBN: 9780226556352
Category : Business & Economics
Languages : en
Pages : 426
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Book Description
Why has antitrust legislation not lived up to its promise of promoting free-market competition and protecting consumers? Assessing 100 years of antitrust policy in the United States, this book shows that while the antitrust laws claim to serve the public good, they are as vulnerable to the influence of special interest groups as are agricultural, welfare, or health care policies. Presenting classic studies and new empirical research, the authors explain how antitrust caters to self-serving business interests at the expense of the consumer. The contributors are Peter Asch, George Bittlingmayer, Donald J. Boudreaux, Malcolm B. Coate, Louis De Alessi, Thomas J. DiLorenzo, B. Epsen Eckbo, Robert B. Ekelund, Jr., Roger L. Faith, Richard S. Higgins, William E. Kovacic, Donald R. Leavens, William F. Long, Fred S. McChesney, Mike McDonald, Stephen Parker, Richard A. Posner, Paul H. Rubin, Richard Schramm, Joseph J. Seneca, William F. Shughart II, Jon Silverman, George J. Stigler, Robert D. Tollison, Charlie M. Weir, Peggy Wier, and Bruce Yandle.
Author: Allan J. Kimmel
Publisher: Routledge
ISBN: 1135647097
Category : Business & Economics
Languages : en
Pages : 281
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Book Description
This book offers a thorough examination of rumors and proposes strategies for organizations to use in combatting rumors that occur both internally and externally. Author Allan J. Kimmel explores the rumor phenomenon and distinguishes it as a distinct form of communication. He looks at psychological and social processes underlying rumor transmission to understand the circumstances under which people invent and circulate rumors. In addition, he examines how rumors are spread--both interpersonally and through mediated processes--and offers strategies for organizations to respond to rumors when they surface and methods for preventing their occurrence. Numerous examples are provided of actual rumor cases for which managers either successfully or unsuccessfully coped, including such companies as Procter & Gamble, McDonald's, Snapple, Pepsi-Cola, and Gerber. Intended to serve as a comprehensive compendium of strategies, this book was written with two objectives in mind. The first is to shed light on the often perplexing phenomenon of rumor by integrating disparate approaches from the behavioral sciences, marketing, and communication fields. The second is to offer a blueprint for going about the formidable tasks of attempting to prevent and neutralize rumors in business contexts. With these dual goals in mind--one theoretical, the other applied--this book will be of equal interest to both academics and managers in a wide range of professional contexts. In addition, it will guide organizational and marketing managers in their efforts to combat the potentially destructive consequences of rumors.
Author: David A. Aaker
Publisher: John Wiley & Sons
ISBN: 0470613580
Category : Business & Economics
Languages : en
Pages : 400
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Book Description
Branding guru Aaker shows how to eliminate the competition and become the lead brand in your market This ground-breaking book defines the concept of brand relevance using dozens of case studies-Prius, Whole Foods, Westin, iPad and more-and explains how brand relevance drives market dynamics, which generates opportunities for your brand and threats for the competition. Aaker reveals how these companies have made other brands in their categories irrelevant. Key points: When managing a new category of product, treat it as if it were a brand; By failing to produce what customers want or losing momentum and visibility, your brand becomes irrelevant; and create barriers to competitors by supporting innovation at every level of the organization. Using dozens of case studies, shows how to create or dominate new categories or subcategories, making competitors irrelevant Shows how to manage the new category or subcategory as if it were a brand and how to create barriers to competitors Describes the threat of becoming irrelevant by failing to make what customer are buying or losing energy David Aaker, the author of four brand books, has been called the father of branding This book offers insight for creating and/or owning a new business arena. Instead of being the best, the goal is to be the only brand around-making competitors irrelevant.
Author: Nancy A. Hubbard
Publisher: Springer
ISBN: 1349148709
Category : Business & Economics
Languages : en
Pages : 280
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Book Description
Over half of acquisitions fail and acquirers keep making the same fatal mistakes time and time again: poor planning, a lack of communication and mishandled implementation. This book explores the process of acquiring through an in depth look at its various stages and enables the reader to understand the process in order to avoid its pitfalls. Throughout the book practical tools and up to date information analysis are used to demonstrate the latest in acquisition best practice. In addition five case studies are used to illustrate the process of acquiring and examine how different companies approached their respective acquisitions and their varying degrees of success. Including focused consideration of the key success determinants such as the psychology of acquisition, pre-acquisition planning, communication and acquisition development, this book is a vital guide for all those considering the acquisition process.
Author: Elisa Luciano
Publisher: MDPI
ISBN: 3039216244
Category : Business & Economics
Languages : en
Pages : 224
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Book Description
Financial Risk Measurement is a challenging task, because both the types of risk and the techniques evolve very quickly. This book collects a number of novel contributions to the measurement of financial risk, which address either non-fully explored risks or risk takers, and does so in a wide variety of empirical contexts.
