Acquiring acquirers: New evidence on the drivers of acquirer’s announcement returns in corporate takeovers

Phalippou, Ludovic, Xu, Fangming and Zhao, Huainan (2014) Acquiring acquirers: New evidence on the drivers of acquirer’s announcement returns in corporate takeovers. AFA San Diego Meetings Paper. (Unpublished)

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Abstract

Target acquisitiveness stands out as one of the primary drivers of all the key aspects of the market for corporate takeovers: acquisition announcement returns, probability of deal success, propensity to acquire and be acquired. In addition, acquisitive targets, though a small proportion of the sample, are responsible for half of the overall negative announcement returns. Our results consistently support the view that the motivation behind acquisitions of acquisitive targets is defensive: acquirers ‘eat in order not to be eaten’.

Item Type: Other Working Paper
Keywords: Mergers and Acquisitions, Takeovers, Acquirer Announcement Returns
Subject(s): Finance
Date Deposited: 11 Mar 2014 17:19
Last Modified: 23 Mar 2016 12:06
URI: http://eureka.sbs.ox.ac.uk/id/eprint/5014

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