Market returns to acquirers of substantial assets

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dc.contributor.author Da Silva Rosa, R
dc.contributor.author Nguyen, T
dc.contributor.author Walter, TS
dc.date.accessioned 2010-07-15T07:28:15Z
dc.date.issued 2004-01
dc.identifier.citation Australian Journal of Management, 2004, 29 (Special), pp. 111 - 134
dc.identifier.issn 0312-8962
dc.identifier.other C1UNSUBMIT en_US
dc.identifier.uri http://hdl.handle.net/10453/12899
dc.description.abstract Does poor post-acquisition performance characterise firms that make non-M&A acquisitions? We investigate the wealth effects of substantial asset acquisitions (i.e. acquisitions that cost over $10 million) on acquiring firms' shareholders. We find significant abnormal positive market reaction to asset acquisition announcements and, contrary to findings for firms undertaking M&As, the acquiring firms perform exceptionally well post-acquisition. Our findings are robust to the research method weaknesses common to many studies of long-term performance and we control for free-cash-flow as well. Our results contradict the hubris hypothesis of acquisitions and lend weight to the argument that the auction-style process that characterizes corporate takeover bids contributes to overpayment.
dc.publisher Australian Graduate School of Management
dc.relation.hasversion Accepted manuscript version en_US
dc.title Market returns to acquirers of substantial assets
dc.type Journal Article
dc.parent Australian Journal of Management
dc.journal.volume Special
dc.journal.volume 29
dc.journal.number Special en_US
dc.publocation Sydney, Australia en_US
dc.identifier.startpage 111 en_US
dc.identifier.endpage 134 en_US
dc.cauo.name BUS.School of Finance and Economics en_US
dc.conference Verified OK en_US
dc.for 1503 Business and Management
dc.for 1502 Banking, Finance and Investment
dc.for 1501 Accounting, Auditing and Accountability
dc.personcode 104692
dc.percentage 34 en_US
dc.classification.name Accounting, Auditing and Accountability en_US
dc.classification.type FOR-08 en_US
dc.edition en_US
dc.custom en_US
dc.date.activity en_US
dc.location.activity en_US
dc.description.keywords asset acquisitions, market efficiency, long-term performance en_US
pubs.embargo.period Not known
pubs.organisational-group /University of Technology Sydney
pubs.organisational-group /University of Technology Sydney/Faculty of Business
pubs.organisational-group /University of Technology Sydney/Faculty of Business/Finance
utslib.copyright.status Open Access
utslib.copyright.date 2015-04-15 12:23:47.074767+10
utslib.collection.history Finance (ID: 371)
utslib.collection.history General (ID: 2)


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