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.
| Original language | English |
|---|---|
| Pages (from-to) | 1-14 |
| Number of pages | 14 |
| Journal | Journal of Contemporary Accounting and Economics |
| Volume | 12 |
| Issue number | 1 |
| DOIs | |
| Publication status | Published - 1 Apr 2016 |
Keywords
- Industry
- Mergers and acquisitions
- Private target acquirers
- Public target acquirers
- Size and performance-adjusted returns
Cite this
}
Operating performance following corporate acquisitions : Does the organisational form of the target matter? / Shams, Syed M. M.; Gunasekarage, Abeyratna.
In: Journal of Contemporary Accounting and Economics, Vol. 12, No. 1, 01.04.2016, p. 1-14.Research output: Contribution to journal › Article › Research › peer-review
TY - JOUR
T1 - Operating performance following corporate acquisitions
T2 - Does the organisational form of the target matter?
AU - Shams, Syed M. M.
AU - Gunasekarage, Abeyratna
PY - 2016/4/1
Y1 - 2016/4/1
N2 - 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.
AB - 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.
KW - Industry
KW - Mergers and acquisitions
KW - Private target acquirers
KW - Public target acquirers
KW - Size and performance-adjusted returns
UR - http://www.scopus.com/inward/record.url?scp=84958179071&partnerID=8YFLogxK
U2 - 10.1016/j.jcae.2016.02.001
DO - 10.1016/j.jcae.2016.02.001
M3 - Article
VL - 12
SP - 1
EP - 14
JO - Journal of Contemporary Accounting and Economics
JF - Journal of Contemporary Accounting and Economics
SN - 1815-5669
IS - 1
ER -