Market returns to acquirers of substantial assets

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Show simple item record Da Silva Rosa, Raymond en_US Nguyen, Thuy en_US Walter, Terry en_US
dc.contributor.editor en_US 2010-07-15T07:28:15Z 2010-07-15T07:28:15Z 2004 en_US
dc.identifier 2008007123 en_US
dc.identifier.citation Da Silva Rosa Raymond, Nguyen Thuy, and Walter Terry 2004, 'Market returns to acquirers of substantial assets', Australian Graduate School of Management, vol. 29, no. Special, pp. 111-134. en_US
dc.identifier.issn 0312-8962 en_US
dc.identifier.other C1UNSUBMIT en_US
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. en_US
dc.language en_US
dc.publisher Australian Graduate School of Management en_US
dc.relation.hasversion Accepted manuscript version en_US
dc.title Market returns to acquirers of substantial assets en_US
dc.parent Australian Journal of Management en_US
dc.journal.volume 29 en_US
dc.journal.number Special en_US
dc.publocation Sydney, Australia en_US
dc.identifier.startpage 111 en_US
dc.identifier.endpage 134 en_US BUS.School of Finance and Economics en_US
dc.conference Verified OK en_US
dc.for 150100 en_US
dc.personcode 0000049213 en_US
dc.personcode 0000052384 en_US
dc.personcode 104692 en_US
dc.percentage 34 en_US Accounting, Auditing and Accountability en_US
dc.classification.type FOR-08 en_US
dc.edition en_US
dc.custom en_US en_US
dc.location.activity en_US
dc.description.keywords asset acquisitions, market efficiency, long-term performance en_US
dc.staffid 104692 en_US

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