CORPORATE FINANCE: EVENT STUDY
~{!0~}DOES SIZE MATTER~{!1~}
THE SIZE EFFECT OF ACQUIRING FIRMS ON RETURNS IN AN ACQUISITION
INTRODUCTION
In this paper, we examine the gains to shareholders of public firms that announce acquisitions of public firms from 2000 to 2004. Specifically, we examine if there is a size effect on the abnormal returns for shareholders of acquiring firms.
In the 20th century, there has been five periods of mergers and acquisitions waves in US economic history. These waves are periods of unusually high merger and acquisition activities. The last wave in 1990s was the largest of all due to the dollar value of transactions and the number of deals. There have been many academic researches done on these merger waves, and specifically the 1990s, providing insightful views, phenomenal and empirical data.
S.B. Moeller et al (2003) found that acquisition announcements in the latest merger waves were costly for acquirers~{!/~} shareholders. Acquisition......
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Approximate Word Count: 2851
Approximate Pages: 11 (260 words per double-spaced page) |