Short and long term performance of Canadian TSE-listed acquirers
Using 771 acquisitions during 1988-1998, this study empirically tests short- and long-term security price performance of Canadian TSE-listed acquirers. The cumulative abnormal return (CAR) and the buy-and-hold abnormal return (BHAR) methods were use for the short- and the long-term studies respectiv...
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| Format: | Others |
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2001
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| Online Access: | http://spectrum.library.concordia.ca/1380/1/MQ59292.pdf Williams, Roxanne <http://spectrum.library.concordia.ca/view/creators/Williams=3ARoxanne=3A=3A.html> (2001) Short and long term performance of Canadian TSE-listed acquirers. Masters thesis, Concordia University. |
| Summary: | Using 771 acquisitions during 1988-1998, this study empirically tests short- and long-term security price performance of Canadian TSE-listed acquirers. The cumulative abnormal return (CAR) and the buy-and-hold abnormal return (BHAR) methods were use for the short- and the long-term studies respectively. In the short-run study, using the dummy variable method, we test three event windows: (-4; 0), (-1, 0) and (0; 4) with an estimation period of 180 days. Non-significant abnormal returns were found in all cases. For the long-run analysis, different approaches for developing a benchmark portfolio are presented. We compare and empirically test two control firms approaches in the spirit of Barber and Lyon (1997) and Longhran and Vigh (1997) over a one year pre-announcement period and three year post-announcement period. The results are not robust to alternative estimation procedures. |
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