Competition in the acquisition market and acquirers' long-run performance
Article
Article Title | Competition in the acquisition market and acquirers' long-run performance |
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ERA Journal ID | 18306 |
Article Category | Article |
Authors | Shams, Syed (Author) and Gunasekarage, Abeyratna (Author) |
Journal Title | International Finance |
Journal Citation | 22, pp. 399-421 |
Number of Pages | 23 |
Year | 2019 |
Place of Publication | United Kingdom |
ISSN | 1367-0271 |
1468-2362 | |
Digital Object Identifier (DOI) | https://doi.org/10.1111/infi.12339 |
Web Address (URL) | https://onlinelibrary.wiley.com/doi/pdf/10.1111/infi.12339 |
Abstract | Using a large sample of completed acquisition deals in Australia, this study examines the influence of competition in the acquisition market on the long-run operating performance of acquirers of private target firms in comparison to that of acquirers of public target firms. We find that, in contrast to acquirers targeting private firms, those targeting public firms improve their performance in the long run through competition-induced bids. However, in a competitive takeover market, public target acquirers experience significant declines in performance when acquiring targets that are labelled high performers. Additionally, public target acquirers report improved performance when acquiring a significant ownership stake in target firms. |
Keywords | Competition, long-run |
ANZSRC Field of Research 2020 | 359999. Other commerce, management, tourism and services not elsewhere classified |
Public Notes | Files associated with this item cannot be displayed due to copyright restrictions. |
Byline Affiliations | University of Southern Queensland |
Monash University | |
Institution of Origin | University of Southern Queensland |
https://research.usq.edu.au/item/q5549/competition-in-the-acquisition-market-and-acquirers-long-run-performance
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