The Measurement of the Market's Reaction to Merger Announcements PDF Download
Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download The Measurement of the Market's Reaction to Merger Announcements PDF full book. Access full book title The Measurement of the Market's Reaction to Merger Announcements by Alovsat Muslumov. Download full books in PDF and EPUB format.
Author: Alovsat Muslumov
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
Get Book Here
Book Description
This paper measures the capital markets' reaction to merger announcements within the announcement month using the sample of 37 mergers from USA. Research findings indicate that targets earn positive average abnormal returns of 19 percent that is statistically significant, whereas acquirers earn positive average abnormal returns of 5 percent that is not statistically significant. The weighted average of the abnormal returns to acquirer and targets is 7 percent and statistically significant. These results indicate that the gains around the merger announcements reflect synergetic gains, not the wealth transfer from acquirer shareholders to target's. The method of payment, business overlap degree of acquirer's and target's industries and the price-to-book ratio of acquirers significantly affect the division of the synergetic gains between the shareholders of target and acquirer firms.
Author: Alovsat Muslumov
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
Get Book Here
Book Description
This paper measures the capital markets' reaction to merger announcements within the announcement month using the sample of 37 mergers from USA. Research findings indicate that targets earn positive average abnormal returns of 19 percent that is statistically significant, whereas acquirers earn positive average abnormal returns of 5 percent that is not statistically significant. The weighted average of the abnormal returns to acquirer and targets is 7 percent and statistically significant. These results indicate that the gains around the merger announcements reflect synergetic gains, not the wealth transfer from acquirer shareholders to target's. The method of payment, business overlap degree of acquirer's and target's industries and the price-to-book ratio of acquirers significantly affect the division of the synergetic gains between the shareholders of target and acquirer firms.
Author: Richard Joseph Rosen
Publisher:
ISBN:
Category : Stocks
Languages : en
Pages : 49
Get Book Here
Book Description
Author: Richard J. Rosen
Publisher:
ISBN:
Category :
Languages : en
Pages : 39
Get Book Here
Book Description
This paper examines the effects of mergers on bidding firms' stock prices. We find evidence of merger momentum: bidder stock prices are more likely to increase when a merger is announced if recent mergers by other firms have been received well (a quot;hotquot; merger market) or if the overall stock market is doing better. However, there is long run reversal. Long-run bidder stock returns are lower for mergers announced when the either merger or stock markets were hot at the time of the merger than for those announced at other times.
Author: Malwina Woznik
Publisher: GRIN Verlag
ISBN: 3656475709
Category : Business & Economics
Languages : en
Pages : 115
Get Book Here
Book Description
Master's Thesis from the year 2013 in the subject Business economics - Controlling, grade: 1,3, University of Cologne (Seminar für allgemeine BWL und Controlling), language: English, abstract: “Warren Buffett swallows Heinz: Sauce for the sage” – a typical takeover announcement was published lately on 14th February 2013. Warren Buffett, a well known inves tor, acquired along with the financial investor 3G Capital the H. J. Heinz Company for $ 28 billion. This is likely to become the largest transaction in the food industry. The company's stock price rose more than 20.0 percent after the publication which is a very characteristic reaction to deal announcements. Hence, the important question is, if transactions, such as the takeover of the H. J. Heinz Company, affect the corporate performance consistently. In general, the core idea about mergers and acquisitions (M&A) is to generate additional future growth if for example organic growth is limited. If two companies merge or a target is bought by another company (the acquirer), shareholders believe in synergy effects. These are revenue enhancements, cost reductions, tax gains and reduced capital requirements leading to business growth and thus to a higher value of the new company. However, it is questionable if this theory can also be experienced in the real world. Ever since the effects of M&A have been analysed, the market of the United States (US) was used as data source. This is plausible due to the fact that the very first information was well recorded for US companies. It is remarkable that literature contributes very little research on Europe, although the number of announced European transactions is comparable to those of the US. For example, in 2007 the European deals volume overtook the one from the United States of America (USA) for the first time. Moreover, research on single European countries almost never exists or only rarely. One exception is the United Kingdom (UK) with an early takeover history beginning in the 1960s. However, European countries should be analysed separately because of its high diversity regarding the accounting framework, the corporate governance or the legal and regulation structure. For instance, Germany is characterised by conservative accounting principles and a high regulation by the banking sector. These issues may also influence the M&A decision making process.
Author: Dun and Bradstreet, inc
Publisher:
ISBN:
Category : Corporations
Languages : en
Pages : 886
Get Book Here
Book Description
Author: Steven N. Kaplan
Publisher: University of Chicago Press
ISBN: 0226424332
Category : Business & Economics
Languages : en
Pages : 350
Get Book Here
Book Description
Mergers and Productivity offers probing analyses of high-profile mergers in a variety of industries. Focusing on specific acquisitions, it illustrates the remarkable range of contingencies involved in any merger attempt. The authors clearly establish each merger's presumed objectives and the potential costs and benefits of the acquisition, and place it within the context of the broader industry. Striking conclusions that emerge from these case studies are that merger and acquisition activities were associated with technological or regulatory shocks, and that a merger's success or failure was dependent upon the acquirer's thorough understanding of the target, its corporate culture, and its workforce and wage structures prior to acquisition. Sifting through a wealth of carefully gathered evidence, these papers capture the richness, the complexity, and the economic intangibles inherent in contemporary merger activity in a way that large-scale studies of mergers cannot.
Author: Andrei Shleifer
Publisher: OUP Oxford
ISBN: 0191606898
Category : Business & Economics
Languages : en
Pages : 295
Get Book Here
Book Description
The efficient markets hypothesis has been the central proposition in finance for nearly thirty years. It states that securities prices in financial markets must equal fundamental values, either because all investors are rational or because arbitrage eliminates pricing anomalies. This book describes an alternative approach to the study of financial markets: behavioral finance. This approach starts with an observation that the assumptions of investor rationality and perfect arbitrage are overwhelmingly contradicted by both psychological and institutional evidence. In actual financial markets, less than fully rational investors trade against arbitrageurs whose resources are limited by risk aversion, short horizons, and agency problems. The book presents and empirically evaluates models of such inefficient markets. Behavioral finance models both explain the available financial data better than does the efficient markets hypothesis and generate new empirical predictions. These models can account for such anomalies as the superior performance of value stocks, the closed end fund puzzle, the high returns on stocks included in market indices, the persistence of stock price bubbles, and even the collapse of several well-known hedge funds in 1998. By summarizing and expanding the research in behavioral finance, the book builds a new theoretical and empirical foundation for the economic analysis of real-world markets.
Author: Walter W. Perlick
Publisher:
ISBN:
Category :
Languages : en
Pages :
Get Book Here
Book Description
Author: Simon Peck
Publisher: Taylor & Francis
ISBN: 9780415226271
Category : Business & Economics
Languages : en
Pages : 494
Get Book Here
Book Description
This set includes articles from the four main fields which have influenced the study of Mergers and Acquisitions: Economics, Finance, Strategic Management and Human Resource Management. Featuring the key papers by individuals who shaped the field, the collection presents these formative pieces in thematically grouped sections, including coverage of: * Perspectives on the modern business corporation and the role of mergers and acquisitions: historical, financial, strategic and management * Causes of mergers and acquisitions activity * Performance impact of mergers and acquisitions activity * Public policy and the corporation The set features a comprehensive index and original introductory material.
Author: Syed Musa Alhabshi
Publisher:
ISBN:
Category :
Languages : en
Pages :
Get Book Here
Book Description
