Does the organisational form of the target influence market reaction to acquisition announcements? Australian evidence
Article
Article Title | Does the organisational form of the target influence market reaction to acquisition announcements? Australian evidence |
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ERA Journal ID | 32913 |
Article Category | Article |
Authors | Shams, Syed M.M. (Author), Gunasekarage, Abeyratna (Author) and Colombage, Sisira R. N. (Author) |
Journal Title | Pacific-Basin Finance Journal |
Journal Citation | 24, pp. 89-108 |
Number of Pages | 20 |
Year | 2013 |
Publisher | Elsevier |
Place of Publication | Netherlands |
ISSN | 0927-538X |
Digital Object Identifier (DOI) | https://doi.org/10.1016/j.pacfin.2013.04.002 |
Abstract | Using public, private and subsidiary acquisitions, we examine whether abnormal returns to bidders depend on the organisational form of the target acquired. The evidence supports two main hypotheses: (i) bidders on private and subsidiary targets earn higher abnormal returns than bidders on public entities and (ii) bidders on private targets earn higher abnormal returns when the method of payment is stock. Acquisitions of unlisted public targets, privately negotiated acquisitions of private targets and acquisitions of subsidiaries from listed parents for cash are associated with higher abnormal returns. |
Keywords | acquisitions; nature of the target; abnormal returns; method of payment; bid characteristics |
ANZSRC Field of Research 2020 | 350202. Finance |
Public Notes | Files associated with this item cannot be displayed due to copyright restrictions. |
Byline Affiliations | Monash University |
Institution of Origin | University of Southern Queensland |
https://research.usq.edu.au/item/q307w/does-the-organisational-form-of-the-target-influence-market-reaction-to-acquisition-announcements-australian-evidence
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