Operating performance following corporate acquisitions: does the organisational form of the target matter?

Article

Shams, Syed M. M. and Gunasekarage, Abeyratna. 2016. "Operating performance following corporate acquisitions: does the organisational form of the target matter?" Journal of Contemporary Accounting and Economics. 12, pp. 1-14. https://doi.org/10.1016/j.jcae.2016.02.001
Article Title

Operating performance following corporate acquisitions: does the organisational form of the target matter?

ERA Journal ID18570
Article CategoryArticle
AuthorsShams, Syed M. M. (Author) and Gunasekarage, Abeyratna (Author)
Journal TitleJournal of Contemporary Accounting and Economics
Journal Citation12, pp. 1-14
Number of Pages14
Year2016
PublisherElsevier
Place of PublicationUnited Kingdom
ISSN1815-5669
Digital Object Identifier (DOI)https://doi.org/10.1016/j.jcae.2016.02.001
Web Address (URL)http://www.sciencedirect.com/science/article/pii/S1815566916000023
Abstract

We compare the long-run operating performance of private target acquirers and public target acquirers using a sample of Australian acquisitions. While private target acquirers realise significantly higher abnormal returns during the announcement period of acquisitions than public target acquirers, there is no significant difference in their operating performance during the post-acquisition period. Relative size has differential effects on the performance of two types of acquirers. Significant performance improvements are possible when private target acquirers make relatively large acquisitions and when public target acquirers acquire relatively small acquisitions. Acquisitions of private targets are also associated with significant performance improvements if they are undertaken by experienced acquirers.

Keywordsmergers and acquisitions; public target acquirers; private target acquirers; industry; size and performance-adjusted returns
ANZSRC Field of Research 2020350202. Finance
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Byline AffiliationsSchool of Commerce
Monash University
Institution of OriginUniversity of Southern Queensland
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