Operating performance following corporate acquisitions: does the organisational form of the target matter?

Shams, Syed M. M. and Gunasekarage, Abeyratna (2016) Operating performance following corporate acquisitions: does the organisational form of the target matter? Journal of Contemporary Accounting & Economics, 12. pp. 1-14. ISSN 1815-5669

Abstract

We compare the long-run operating performance of private target acquirers and public target acquirers using a sample of Australian acquisitions. While private target acquirers realise significantly higher abnormal returns during the announcement period of acquisitions than public target acquirers, there is no significant difference in their operating performance during the post-acquisition period. Relative size has differential effects on the performance of two types of acquirers. Significant performance improvements are possible when private target acquirers make relatively large acquisitions and when public target acquirers acquire relatively small acquisitions. Acquisitions of private targets are also associated with significant performance improvements if they are undertaken by experienced acquirers.


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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: Permanent restricted access to published version in accordance with the copyright policy of the publisher.
Faculty / Department / School: Current - Faculty of Business, Education, Law and Arts - School of Commerce
Date Deposited: 21 Apr 2016 06:01
Last Modified: 21 Apr 2016 06:01
Uncontrolled Keywords: mergers and acquisitions; public target acquirers; private target acquirers; industry; size and performance-adjusted returns
Fields of Research : 15 Commerce, Management, Tourism and Services > 1502 Banking, Finance and Investment > 150201 Finance
Socio-Economic Objective: E Expanding Knowledge > 97 Expanding Knowledge > 970115 Expanding Knowledge in Commerce, Management, Tourism and Services
Identification Number or DOI: 10.1016/j.jcae.2016.02.001
URI: http://eprints.usq.edu.au/id/eprint/29028

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