The effect of merger anticipation on bidder and target firm announcement period returns

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dc.citation.epage611en_US
dc.citation.issueNumber3en_US
dc.citation.spage595en_US
dc.citation.volumeNumber17en_US
dc.contributor.authorCornett, M. M.en_US
dc.contributor.authorTanyeri B.en_US
dc.contributor.authorTehranian, H.en_US
dc.date.accessioned2015-07-28T11:59:39Z
dc.date.available2015-07-28T11:59:39Z
dc.date.issued2011-06en_US
dc.departmentDepartment of Managementen_US
dc.description.abstractThis paper examines investors' anticipation of bidder and target merger candidacy and if investor anticipations about candidacy affect the distribution of value between bidder and target firm shareholders. We find that bidder firms can be predicted more accurately than target firms. To investigate how merger announcement period returns are distributed among bidder and target shareholders, we control for different degrees of predictability in bidder and target selection and find that the difference between bidder and target firm three-day cumulative abnormal returns around a merger announcement decreases significantly. Thus, the evidence supports the hypothesis that the asymmetry in investor anticipations about merger candidacy causes disparity in bidder and target firm announcement period abnormal returns.en_US
dc.description.provenanceMade available in DSpace on 2015-07-28T11:59:39Z (GMT). No. of bitstreams: 1 10.1016-j.jcorpfin.2010.10.004.pdf: 284314 bytes, checksum: 59161613836f98f398676ca64edc5b42 (MD5)en
dc.identifier.doi10.1016/j.jcorpfin.2010.10.004en_US
dc.identifier.issn0929-1199
dc.identifier.urihttp://hdl.handle.net/11693/12006
dc.language.isoEnglishen_US
dc.publisherElsevieren_US
dc.relation.isversionofhttp://dx.doi.org/10.1016/j.jcorpfin.2010.10.004en_US
dc.source.titleJournal of Corporate Financeen_US
dc.subjectMergers and scquisitionsen_US
dc.subjectFinancial performanceen_US
dc.subjectCorporate governanceen_US
dc.titleThe effect of merger anticipation on bidder and target firm announcement period returnsen_US
dc.typeArticleen_US

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