Journal ArticleDOI
Do mergers and acquisitions improve informativeness about the acquirer’s stock?
Reads0
Chats0
TLDR
In this article, the authors consider a sample of mergers and acquisitions in the US and in Europe over the 2000-2011 period and show that the disclosure process is not linked with abnormal returns at the announcement date.Abstract:
Are there acquisition and deal characteristics which develop informativeness more than others? Is the informativeness process the same between countries? To answer to these questions we use the concept of informativeness, as first developed by Roll (1988). We consider a sample of mergers and acquisitions in the US and in Europe over the 2000-2011 period. We show that the disclosure process is not linked with abnormal returns at the announcement date. Informativeness improves globally. We show that the acquisition premium and the means of payment are particularly important in the disclosure process.read more
Citations
More filters
Posted Content
Private information implications for acquirers and targets in horizontal mergers
Amit Mittal,Ajay Kumar Garg +1 more
TL;DR: In this article, the authors present a robust theory centered in private information to assuage event study literature and confirm with Acquirer gains in Bank M&A, where the ability of larger firms lies in investments in Intellectual capital, harnessing soft information and critically, purloin value in the deal through bargaining based on its own and the Target's specific private information.
References
More filters
Journal ArticleDOI
Firm size and the gains from acquisitions
TL;DR: This paper examined a sample of 12,023 acquisitions by public firms from 1980 to 2001 and found that the announcement return for acquiring-firm shareholders is roughly two percentage points higher for small acquirers irrespective of the form of financing and whether the acquired firm is public or private.
Journal ArticleDOI
The information content of stock markets: why do emerging markets have synchronous stock price movements?
TL;DR: This paper found that stock prices move together more in poor economies than in rich economies, and this "nding is not due to market size and is only partially explained by higher fundamentals".
Journal ArticleDOI
R2 around the world: New theory and new tests
Li Jin,Stewart C. Myers +1 more
TL;DR: This article showed that lack of transparency increases R2 by shifting firm-specific risk to managers and that opaque stocks with high R2s are also more likely to crash, that is, to deliver large negative returns.
Journal ArticleDOI
Value-Enhancing Capital Budgeting and Firm-specific Stock Return Variation
TL;DR: In this paper, a robust cross-sectional positive association across industries between a measure of the economic efficiency of corporate investment and the magnitude of firmspecific variation in stock returns was found.
Journal ArticleDOI
A Theory for the Choice of Exchange Medium in Mergers and Acquisitions.
TL;DR: Although there is wide interest among academics, business people, and the general public on the subject of mergers and acquisitions, little formal research has been done on the negotiating/ auction process whereby transactions in the socalled market for corporate control are actually effected.