Wealth effect of firms engaging in acquisitions programmes
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Cite this item:
Yii, W. Y. O. (1999, February 26). Wealth effect of firms engaging in acquisitions programmes (Thesis). Retrieved from http://hdl.handle.net/10523/1425
Permanent link to OUR Archive version:
http://hdl.handle.net/10523/1425
Abstract:
This paper examines the short-term and long-term performance of acquiring firms engaging in acquisitions programmes. In particular, the short-term performance around the announcement is studied in terms of the growth opportunities of acquiring firms (as proxied by Tobin's q ratio). The long-term performance after the announcement is studied with respect to growth opportunities, active/inactive acquirers and leverage level. Overall results show that the acquirers earn significant abnormal returns both in the short run and long run. However, long-term analyses reveal that the over-performance is not uniform across the full sample. High-q and high-levered firms earn significant abnormal returns while low-q and low-levered firms do not.
Date:
1999-02-26
Degree Discipline:
Finance
Pages:
53
Keywords:
acquiring firms; performance; short-term performance; growth opportunities; abnormal returns
Research Type:
Thesis
Collections
- Thesis - Masters [2478]
- Accountancy and Finance [247]