Competition in the acquisition market and acquirers' long-run performance

Shams, Syed and Gunasekarage, Abeyratna (2019) Competition in the acquisition market and acquirers' long-run performance. International Finance, 22. pp. 399-421. ISSN 1367-0271


Abstract

Using a large sample of completed acquisition deals in Australia, this study examines the influence of competition in the acquisition market on the long-run operating performance of acquirers of private target firms in comparison to that of acquirers of public target firms. We find that, in contrast to acquirers targeting private firms, those targeting public firms improve their performance in the long run through competition-induced bids. However, in a competitive takeover market, public target acquirers experience significant declines in performance when acquiring targets that are labelled high performers. Additionally, public target acquirers report improved performance when acquiring a significant ownership stake in target firms.


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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: Files associated with this item cannot be displayed due to copyright restrictions.
Faculty/School / Institute/Centre: Current - Faculty of Business, Education, Law and Arts - School of Commerce (1 July 2013 -)
Faculty/School / Institute/Centre: Current - Faculty of Business, Education, Law and Arts - School of Commerce (1 July 2013 -)
Date Deposited: 17 Jan 2020 02:33
Last Modified: 17 Jan 2020 04:29
Uncontrolled Keywords: Competition, long-run
Fields of Research : 15 Commerce, Management, Tourism and Services > 1599 Other Commerce, Management, Tourism and Services > 159999 Commerce, Management, Tourism and Services not elsewhere classified
Identification Number or DOI: 10.1111/infi.12339
URI: http://eprints.usq.edu.au/id/eprint/36800

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