Global Merger and Acquisition (M&A) activity: 1992-2011

Date
2016
Authors
Yılmaz, I. S.
Tanyeri B.
Editor(s)
Advisor
Supervisor
Co-Advisor
Co-Supervisor
Instructor
Source Title
Finance Research Letters
Print ISSN
1544-6123
Electronic ISSN
Publisher
Elsevier Ltd
Volume
17
Issue
Pages
110 - 117
Language
English
Journal Title
Journal ISSN
Volume Title
Series
Abstract

In our global sample of 263,461 deals in 47 countries, 3-day target cumulative abnormal returns (CARs) average 6.9% and bidder CARs average 1.4%. When we impose the common filters used in the literature which restrict the sample to completed acquisitions of public firms, target CARs increase from 6.9% to 13%. Our findings indicate that M&A activity (particularly in deals where control rights are sold) generates value. We also find that the magnitudes of bidder and target CARs in developed countries are higher than those in emerging-market countries.

Course
Other identifiers
Book Title
Citation
Published Version (Please cite this version)