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To Switch or Not to Switch: Evidence from Multiple U. S. Acquirers
International Journal of Finance and Banking Research
Volume 2, Issue 3, June 2016, Pages: 49-62
Received: Mar. 21, 2016; Accepted: Apr. 10, 2016; Published: May 10, 2016
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Author
Vanya Stefanova Petrova, School of Finance, Shanghai University of Finance and Economics, Shanghai, P. R. China
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Abstract
With a comprehensive U.S. domestic sample, we study shareholder announcement returns for firms that acquired 5 or more public, private, and/or subsidiary targets, and switched or shifted from in-state to out-of-state acquisition, and vice versa, from a deal conducted in different state to one completed in their own state. Generally, switching has a negative effect on bidder announcement returns (-3.424): switch-deals have significantly lower CARs than non-switch deals: 1.251% against 2.876. Shifting states has a more pronounced negative impact in later deals, and when the switch is from same to different state.
Keywords
Multiple acquisitions, Merger announcement returns, In-state and out-of-state takeovers
To cite this article
Vanya Stefanova Petrova, To Switch or Not to Switch: Evidence from Multiple U. S. Acquirers, International Journal of Finance and Banking Research. Vol. 2, No. 3, 2016, pp. 49-62. doi: 10.11648/j.ijfbr.20160203.11
Copyright
Copyright © 2016 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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