The Underperformance of bidder companies | Macquarie University ResearchOnline

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Please use this identifier to cite or link to this item: http://hdl.handle.net/1959.14/101137

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Title: The Underperformance of bidder companies
Related: International Symposium on Empirical Accounting Research (6th : 2007) (15 - 16 December 2007 : Xiamen, China)
Related: Proceedings of the 6th International Symposium on Empirical Accounting Research
Publisher: Xiamen, China : Xiamen University
Date: 2007
FoR/RFCD Code(s): 350301 Finance 150200 Banking, Finance and Investment
Author/Creator: Lau, Ben
Author/Creator: Proimos, Alex
Description: This study investigates bidder and target returns around a Merger and Acquisition (M&A) announcement. Our empirical evidence finds that the cumulative average abnormal returns to bidder shareholders following a M&A announcement are highly negative for equity only financed offers; particularly in comparison to cash financed bids. Moreover, we highlight the implications to legal and finance practitioners in M&A advising of public companies in light of the highly significant evidence that bidder companies fail to receive subsequent share price gains in the short term (less than sixty days) surrounding an offer announcement.
Description: 23 page(s)
Subject Keyword: 350301 Finance
Subject Keyword: 150200 Banking, Finance and Investment
Resource Type: conference paper
Organisation: Macquarie University. Dept. of Accounting and Finance

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