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2007 | 6 | 1 | 107-122

Article title

Event Study in the Evaluation of Effects of Mergers and Acquisitions

Title variants

Languages of publication

EN

Abstracts

EN
The paper presents the essence of the methodology of event study used in developed markets to evaluate post-acquisition performance based on the market data. In particular, the paper discusses the issues of abnormal returns and expected return models, presenting also selected examples of post-acquisition performance in developed markets. At the end, the author has addressed the issue of contemporary tendencies in the event study methodology.

Publisher

Year

Volume

6

Issue

1

Pages

107-122

Physical description

Dates

published
2007-01-01
online
2008-03-12

Contributors

  • Financial Management Department Faculty of Economics and Management, University of Szczecin, Mickiewicza 64, 71-101 Szczecin

References

  • Agrawal, A., Jaffe, J.F. & Mandelker, G.N. (1992, September). The Post-Merger Performance of Acquiring Firms: A Re-Examination of an Anomaly. The Journal of Finance, XL VII(4), 1605-1621.[WoS]
  • Baker, R.D. & Limmack, R.J. (2001, April). UK Takeovers and Acquiring Company Wealth Changes: The Impact of Survivorship and Other Potential Selection Biases on Post-Outcome Performance. EFMA 2001 Lugano Meetings; U of Stirling Accounting, Finance & Law, Working Paper No. 01-04. Retrieved January 18, 2008, from SSRN eLibrary Database
  • Barber, B.M. & Lyon, J.D. (1997). Detecting Long-Run Abnormal Stock Returns: The Empirical Power and Specification of Test Statistics. Journal of Financial Economics, 43, 341-372.[Crossref]
  • Bergström, C., Högfeldt, P. & Högholm, K. (1993). Strategic Blocking, Arbitrageurs and the Division of the Takeover Gains. Multinational Financial Management, 3, 217-248.
  • Dasgupta, S., Laplantte, B. & Mamingi, N. (1998). Capital Market Response to Environmental Performance in Developing Countries. April, The World Bank.
  • Diacogiannis, G.P. (1994). Financial Management. A Modeling Approach Using Spreadsheets. London: McGraw-Hill.
  • Doukas, J.A., Holmén, M. & Travlos, N.G. (2001, February). Corporate Diversification and Firm Performance: Evidence from Swedish Acquisitions. Retrieved January 18, 2008, from SSRN eLibrary Database [Crossref]
  • Fama, E.F., Fisher, L., Jensen, M.C. & Roll R. (1969). The Adjustment of Stock Prices to New Information. International Review, 10, 1-21.
  • Fama, E.F. (1998). Market Efficiency, Long-Term Returns, and Behavioral Finance. Journal of Financial Economics, 49, 283-306.[Crossref]
  • Goergen, M. & Renneboog, L. (2003, January). Shareholder Wealth Effects of European Domestic and Cross-border Takeovers Bids. ECGI-Finance Working Paper, 08/2003. Retrieved January 18, 2008, from SSRN eLibrary Database
  • Gregory, A. (1997). An Examination of the Long Run Performance of UK Acquiring Firms. Journal of Business Finance & Accounting, 24, 971-1002.[Crossref][WoS]
  • Higson, C. & Elliott, J. (1998). Post-takeover Returns: The UK Evidence, Journal of Empirical Finance, 5, 27-46.[Crossref]
  • Kothari, S.P. & Warner, J.B. (2004, October). Econometrics of Event Studies. Retrieved January 18, 2008, from SSRN eLibrary Database
  • Kothari, S.P. & Warner, J.B. (1997). Measuring Long-horizon Security Price Performance. Journal of Financial Economics, 43, 301-339.[Crossref]
  • Lewandowski, M. (2001). Fuzje i przejęcia w Polsce na tle tendencji światowych. Warszawa: WIG PRESS.
  • Limmack, R J. (2003). Discussion of Glamour Acquirers, Method of Payment and Post-acquisitions Performance: The UK Evidence. Journal of Business Finance & Accounting, 30, 343-350.[Crossref]
  • Loderer, C. & Martin, K. (1990). Corporate Acquisitions by Listed Firms: The Experience of a Comprehensive Sample. Financial Management, Winter, 17-33.
  • Lyon, J.D., Barber, B.M. & Tsai, C.L. (1999). Improved Methods for Tests of Long-run Abnormal Stock returns. The Journal of Finance, 54, 165-201.[Crossref]
  • Machała, R. (2005). Przejęcia i fuzje. Wpływ na wartość. Wrocław: Oficyna Wydawnicza UNIMEX.
  • Mitchell, M.L. & Stafford, E. (1999, October). Managerial Decisions and Long-Term Stock Price Performance. CRSP Working Paper, 453. Retrieved January 18, 2008, from SSRN eLibrary Database
  • Moeller, S.B., Schlingemann, F.P. & Stulz, R.M. (2003). Do Shareholders of Acquiring Firms Gain from Acquisitions? NBER Working Paper Series. Retrieved January 18, 2008, from
  • Perepeczo, A. & Zarzecki, D. (2006). Wyniki badań efektów finansowych przejęć na podstawie danych rynkowych spółek notowanych na warszawskiej giełdzie papierów wartościowych. In D. Zarzecki (Ed.), Zarządzanie finansami. Inwestycje i wycena przedsiębiorstw. Vol. I (pp.423-434). Szczecin: Uniwersytet Szczeciński.
  • Rau, P.R. & Vermaelen, T. (1998). Glamour, Value and the Post-Acquisition Performance of Acquiring Firms. Journal of Financial Economics, 49, 223-253.
  • Szyszka, A. (2002). Studium wydarzeń: reakcja inwestorów na publiczne wezwania do sprzedaży akcji. In D. Zarzecki (Ed.), Zarządzanie finansami. Klasyczne zasady - nowoczesne narzędzia (pp. 737-749). Szczecin: Uniwersytet Szczeciński.
  • Sudarsanam, S., Holl, P. & Salami, A. (1996). Shareholder Wealth Gains in Mergers: Effect of Synergy and Ownership Structure. Journal of Business Finance & Accounting, 23, 673-698.[Crossref]
  • Sudarsanam, S. & Mahate, A.A. (2003). Glamour Acquirers, Method of Payment and Post-Acquisition Performance: The UK Evidence. Journal of Business Finance & Accounting, 30, 299-341.[Crossref]
  • Sudarsanam, S. (2003). Creating Value from Mergers and Acquisitions. The Challenges. FTPrenticeHall.
  • Sudarsanam, S. (1998). Fuzje i przejęcia. Warszawa: WIG PRESS.

Document Type

Publication order reference

Identifiers

YADDA identifier

bwmeta1.element.doi-10_2478_v10031-007-0007-2
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