Acquiring firms' stock returns
This study examines the effects of the method of payment, change in leverage, and management equity ownership on the acquiring firm's stock returns around the initial announcement date of the merger. Results indicate that stockholders of mergers financed with stocks suffer significant losses. T...
محفوظ في:
| المؤلف الرئيسي: | |
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| مؤلفون آخرون: | |
| التنسيق: | article |
| منشور في: |
1994
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| الوصول للمادة أونلاين: | http://hdl.handle.net/10725/4702 http://dx.doi.org/10.1007/BF02920219 http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.php http://link.springer.com/article/10.1007/BF02920219 |
| الوسوم: |
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| _version_ | 1864513464113823744 |
|---|---|
| author | Raad, Elias |
| author2 | Wu, H.K. |
| author2_role | author |
| author_facet | Raad, Elias Wu, H.K. |
| author_role | author |
| dc.creator.none.fl_str_mv | Raad, Elias Wu, H.K. |
| dc.date.none.fl_str_mv | 1994 2016-10-27T08:21:46Z 2016-10-27T08:21:46Z 2016-10-27 |
| dc.identifier.none.fl_str_mv | 1055-0925 http://hdl.handle.net/10725/4702 http://dx.doi.org/10.1007/BF02920219 Raad, E., & Wu, H. K. (1994). Acquiring firms' stock returns: Methods of payment, change in leverage, and management ownership. Journal of Economics and Finance, 18(1), 13-29. http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.php http://link.springer.com/article/10.1007/BF02920219 |
| dc.language.none.fl_str_mv | en |
| dc.relation.none.fl_str_mv | Journal of Economics and Finance |
| dc.rights.*.fl_str_mv | info:eu-repo/semantics/openAccess |
| dc.title.none.fl_str_mv | Acquiring firms' stock returns methods of payment, change in leverage, and management ownership |
| dc.type.none.fl_str_mv | Article info:eu-repo/semantics/publishedVersion info:eu-repo/semantics/article |
| description | This study examines the effects of the method of payment, change in leverage, and management equity ownership on the acquiring firm's stock returns around the initial announcement date of the merger. Results indicate that stockholders of mergers financed with stocks suffer significant losses. These losses are larger when management ownership is low and smaller in mergers that resulted in acquiring firm leverage decreases. Stockholders of acquiring firms involved in cash mergers gain significant abnormal returns, provided that acquiring firms increase their leverage and that managerial ownership is high. When management equity ownership is low, leverage has no effect on stock returns. When management ownership is high, mergers which resulted in acquiring firm leverage increases have significant positive effects, and those which resulted in acquiring firm leverage decreases have negative but insignificant effects. |
| eu_rights_str_mv | openAccess |
| format | article |
| id | LAURepo_e705d92b05531de2da28f0049b4e769a |
| identifier_str_mv | 1055-0925 Raad, E., & Wu, H. K. (1994). Acquiring firms' stock returns: Methods of payment, change in leverage, and management ownership. Journal of Economics and Finance, 18(1), 13-29. |
| language_invalid_str_mv | en |
| network_acronym_str | LAURepo |
| network_name_str | Lebanese American University repository |
| oai_identifier_str | oai:laur.lau.edu.lb:10725/4702 |
| publishDate | 1994 |
| repository.mail.fl_str_mv | |
| repository.name.fl_str_mv | |
| repository_id_str | |
| spelling | Acquiring firms' stock returnsmethods of payment, change in leverage, and management ownershipRaad, EliasWu, H.K.This study examines the effects of the method of payment, change in leverage, and management equity ownership on the acquiring firm's stock returns around the initial announcement date of the merger. Results indicate that stockholders of mergers financed with stocks suffer significant losses. These losses are larger when management ownership is low and smaller in mergers that resulted in acquiring firm leverage decreases. Stockholders of acquiring firms involved in cash mergers gain significant abnormal returns, provided that acquiring firms increase their leverage and that managerial ownership is high. When management equity ownership is low, leverage has no effect on stock returns. When management ownership is high, mergers which resulted in acquiring firm leverage increases have significant positive effects, and those which resulted in acquiring firm leverage decreases have negative but insignificant effects.PublishedN/A2016-10-27T08:21:46Z2016-10-27T08:21:46Z19942016-10-27Articleinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/article1055-0925http://hdl.handle.net/10725/4702http://dx.doi.org/10.1007/BF02920219Raad, E., & Wu, H. K. (1994). Acquiring firms' stock returns: Methods of payment, change in leverage, and management ownership. Journal of Economics and Finance, 18(1), 13-29.http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.phphttp://link.springer.com/article/10.1007/BF02920219enJournal of Economics and Financeinfo:eu-repo/semantics/openAccessoai:laur.lau.edu.lb:10725/47022021-03-19T09:10:12Z |
| spellingShingle | Acquiring firms' stock returns Raad, Elias |
| status_str | publishedVersion |
| title | Acquiring firms' stock returns |
| title_full | Acquiring firms' stock returns |
| title_fullStr | Acquiring firms' stock returns |
| title_full_unstemmed | Acquiring firms' stock returns |
| title_short | Acquiring firms' stock returns |
| title_sort | Acquiring firms' stock returns |
| url | http://hdl.handle.net/10725/4702 http://dx.doi.org/10.1007/BF02920219 http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.php http://link.springer.com/article/10.1007/BF02920219 |