Returns to Bidding and Target Finns in Hostile Takeovers: Some UK Evidence

Mohamad, Shamsher and Md Nassir, Annuar (1991) Returns to Bidding and Target Finns in Hostile Takeovers: Some UK Evidence. Pertanika, 14 (3). pp. 373-381.

[img] PDF
4Mb

Abstract

This paper explores the returns to bidding and target firms in hostile takeovers and their combined wealth effects on the announcement of the offer in the UK. The findings reveal that bidder firms earn negative and significant abnormal returns, whereas target firms earn positive and significant abnormal returns. The gains to target firms more than compensate the losses suffered lry bidders as the combined gains are positive and significant. These findings are consistent with those documented in the US. The positive and significant combined gains imply that takeovers are wealth-creating investments, which is consistent with the notion that managers pursue takeovers to maximise wealth rather than size of theirfirm.

Item Type:Article
Keyword:takeovers, bidders, targets, abnormal returns, combined gains
Faculty or Institute:Faculty of Economics and Management
ID Code:2887
Deposited By: Nur Izzati Mohd Zaki
Deposited On:19 Nov 2009 02:31
Last Modified:27 May 2013 07:04

Repository Staff Only: item control page

Document Download Statistics

This item has been downloaded for since 19 Nov 2009 02:31.

View statistics for "Returns to Bidding and Target Finns in Hostile Takeovers: Some UK Evidence"


Universiti Putra Malaysia Institutional Repository

Universiti Putra Malaysia Institutional Repository is an on-line digital archive that serves as a central collection and storage of scientific information and research at the Universiti Putra Malaysia.

Currently, the collections deposited in the IR consists of Master and PhD theses, Master and PhD Project Report, Journal Articles, Journal Bulletins, Conference Papers, UPM News, Newspaper Cuttings, Patents and Inaugural Lectures.

As the policy of the university does not permit users to view thesis in full text, access is only given to the first 24 pages only.