Firm Size and the Gains of Acquirers in the UK
碩士 === 國立中央大學 === 財務金融研究所 === 96 === This study examines the relationship between firm size and the abnormal returns of mergers and acquisitions in the UK. We analyze a sample of 1,085 M&As over the period 1996 to 2005. Large acquirers earn significant positive returns during the period surround...
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| Format: | Others |
| Language: | en_US |
| Published: |
2008
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| Online Access: | http://ndltd.ncl.edu.tw/handle/94521415430507609458 |
| Summary: | 碩士 === 國立中央大學 === 財務金融研究所 === 96 === This study examines the relationship between firm size and the abnormal returns of mergers and acquisitions in the UK. We analyze a sample of 1,085 M&As over the period 1996
to 2005. Large acquirers earn significant positive returns during the period surrounding the bid announcement. There is no obvious size effect for M&As in the UK. The gains are
also dependent on the organizational form of acquired assets and methods of payment. As a result, we sort our sample by different organizational form of acquired assets and different methods of payment. The result shows that M&As of private target and payment with mixed method gain significantly and it is consistent with the managerial motive hypothesis and liquidity hypothesis. In the long run, there is evidence that the stock performance of acquiring firms is reversed over time. The post-event long-term result for small acquirers is better than large acquirers irrespective of the organizational form of acquired assets and methods of payment. Further, the abnormal return of subsidiary target is higher than private and public target.
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