Long-run performance of mergers and acquisition of privately held targets: Evidence in the USA

Shao-Chi Chang, Ming Tse Tsai

研究成果: Article同行評審

7 引文 斯高帕斯(Scopus)

摘要

In this study, we examine the long-run performance of firms acquiring privately held targets. Past studies have documented a positive market reaction to the announcement of Mergers and Acquisitions (M&A) of privately held targets. The M&As of privately held targets involve uncertain information, which investors are more likely to misestimate. In this study, we tested the long-run performances of acquiring firms and found negative results. We further found that the stock performance of acquiring firms was superior prior to the M&A. Our results suggest that investors may over-extrapolate prior good performance and that the long-run reversed return corrects the overestimation in response to announcements of M&A.

原文English
頁(從 - 到)520-524
頁數5
期刊Applied Economics Letters
20
發行號6
DOIs
出版狀態Published - 2013 四月 1

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics

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