TY - JOUR
T1 - Extraordinary acquirers
AU - Golubov, Andrey
AU - Yawson, Alfred
AU - Zhang, Huizhong
N1 - Funding Information:
We are grateful to our referee, Richard Roll, for insightful comments and constructive recommendations. We also thank Hendrik Bessembinder, Murillo Campello, Ettore Croci, Cláudia Custódio, Sudipto Dasgupta, François Derrien, B. Espen Eckbo, Alex Edmans, Daniel Ferreira, Eliezer Fich, John Forker, Jarrad Harford, Wei Jiang, Marcin Kacperczyk, Ronald Masulis, Holger Mueller, Tu Nguyen, Micah Officer, Dimitris Petmezas, Scott Richardson, Sudi Sudarsanam, Nick Travlos, Paolo Volpin, Takeshi Yamada, as well as seminar participants at City University London, HEC Paris, Tel Aviv University, University of Adelaide, University of Bath, University of Essex, University of Exeter, University of Reading, University of Sussex, University of Surrey, Queen׳s University Belfast, FMA 2013 Annual Conference, and Australasian Finance and Banking 2012 Conference for helpful comments and suggestions. Golubov acknowledges support from the M&A Research Centre at Cass Business School, City University London. Part of this work was conducted while Yawson was a Visiting Research Scholar at Cass Business School, City University London. All remaining errors are our own.
Publisher Copyright:
© 2015 The Authors.
PY - 2015/5
Y1 - 2015/5
N2 - Firm fixed effects alone explain as much of the variation in acquirer returns as all the firm- and deal-specific characteristics combined. An interquartile range of acquirer fixed effects is over 6%, comparable to the interquartile range of acquirer returns. Acquirer returns persist over time, but mainly at the top end of the distribution. Persistence continues under different chief executive officers (CEOs), and attributes of the broader management team do not explain the fixed effect. Firm-specific heterogeneity in acquirer returns suggests that some organizations are extraordinary acquirers irrespective of the leadership at the top and the deal structures they choose. Implications for the M&A research are discussed.
AB - Firm fixed effects alone explain as much of the variation in acquirer returns as all the firm- and deal-specific characteristics combined. An interquartile range of acquirer fixed effects is over 6%, comparable to the interquartile range of acquirer returns. Acquirer returns persist over time, but mainly at the top end of the distribution. Persistence continues under different chief executive officers (CEOs), and attributes of the broader management team do not explain the fixed effect. Firm-specific heterogeneity in acquirer returns suggests that some organizations are extraordinary acquirers irrespective of the leadership at the top and the deal structures they choose. Implications for the M&A research are discussed.
KW - Acquirer returns
KW - Fixed effects
KW - Mergers and acquisitions
KW - Performance persistence
UR - http://www.scopus.com/inward/record.url?scp=84928825591&partnerID=8YFLogxK
U2 - 10.1016/j.jfineco.2015.02.005
DO - 10.1016/j.jfineco.2015.02.005
M3 - Article
AN - SCOPUS:84928825591
SN - 0304-405X
VL - 116
SP - 314
EP - 330
JO - Journal of Financial Economics
JF - Journal of Financial Economics
IS - 2
ER -