Cumulative Abnormal Returns During Merger and Acquisition Announcement ab 48.99 € als Taschenbuch: How Do Human Capital Assets Affect Cumulative Abnormal Returns During Merger and Acquisition Announcements?. Aus dem Bereich: Bücher, Wissenschaft, Wirtschaftswissenschaft,
Raising new funds for the company always become the important thing to be discussed. Growth expansion needs or company financial restructuring often need much fresh fund in fastest way. Many companies nowadays choose rights issue method to raise funds easily because it is quicker and relatively cheaper. Contribution of rights issue transactions in Indonesia stock market is also high. This book is to examine the influence of rights issue at the ex-date, specifically want to analyze the influence of growth opportunities and business group against the cumulative abnormal return of companies that conduct rights issue in the Indonesia Stock Exchange as one of the countries with emerging capital market. The analysis should help shed some light in the financial market, and should be useful for the professionals and investors to make better decision about financial and investment matters.
The main goal of this article is to examine going- private transactions in the financial services industry. Our results provide evidence that the public announcement of these transactions produces positive cumulative abnormal returns (CARs) of about 15 percent. The public announcement of the withdrawal of these transactions generates negative CARs between 4 and 5 percent. We also find that the firm s age has a negative and significant relationship with the CARs for the time window ( 1, +1). Similarly, we find that the level of D&O ownership of management buyouts has a negative and significant relationship with the CARs generated by the public announcement of the withdrawal of a going- private proposal. We also find that the total risk and the unsystematic risk of financial firms experience a positive and significant increase after the public announcement of a going-private proposal. Finally, our sample has negative decreasing average buy and hold abnormal returns during all considered periods: 20.3, 34.41, 43.3, 50.1, and 68.2 percent during the first 6, 12, 18, 24, and 36 months, respectively.
The results presented in this paper strongly support the integrative theory of mergers and acquisitions (Finkelstein and Larsson (1999), which suggests that the organizational integration is one of the most important determinants of M&,A success. Overall, the EF is negatively correlated with CARs when the entire data set is analyzed. The results suggest that integration processes become more complicated because the employees from the target firm are more resistant to the new culture due to a low level of cultural domination of the acquiring firm. In addition, the results demonstrate that this effect is strongest in 1) within-industry mergers, 2) cross-region mergers, and 3) mergers involving employees with high-valued skill sets. I find significant effects for the EF only in some specific industry groups that require employees with high skill levels and expertise. Additionally, the findings also show that a group of M&,A transactions in which target firms' average deal value per acquired employee is high, indicating that the employees have high skill sets and expertise, experiences a particularly strong effect from the EF.
This book describes the value generated to the shareholders of acquiring companies by the announcement of mergers and acquisitions. Cumulative Abnormal Announcement Returns to those shareholders, due to the announcement of a merger or acquisition, reflect a possible revision of the expected value resulting from boosted economies of scale, future synergies or wealth redistribution among stakeholders. The author investigated how bidder returns dispersed in 168 acquisitions by Dutch companies, and whether or not this dispersion can be explained based upon nine explanatory variables, being Announcement date equals rumour date, Domestic or cross border acquisitions, Payment type, Industry similarity between bidder and target, Public or private target, Owner control in the bidding company, Relative size of the target, Bidder acquisition experience and Market timing. These variables serve as determinants, of which some prove to have a positive or negative influence on the CAAR. Some determinants however have (according to prior empirical research) a positive effect on the announcement share price. A must for all shareholders of acquiring firms acting as bidders in a takeover.
Previous studies, in most cases, investigated share repurchases for undervalued companies. This work is dedicated to a deeper analysis of the reasons for share buybacks of the most prominent US firms, which are not likely to be undervalued. Hence, empirical evidence shows that the sample firms tend to repurchase more shares if there are no good investment possibilities available or as a vehicle for eliminating shares dilution when the stock options are exercised. Investigating 308 announcements of 100 companies ever included into the S&P100 index between 2005 and 2014, I observed positive and significant short-term cumulative abnormal returns after the companies had published information about the share repurchase program authorization in all years except 2009. In order to show how valuable announcements about planned share repurchases might be for market participants, eight event-driven investment strategies are constructed and evaluated in this work.
The book is about the impact of Black Economic Empowerment (BEE) on the shareprice of construction and property companies that implemented BEE transactions, post the enacting of the South African government BEE Act of 2003 and published their BEE transactions on the Johannesburg Stock Exchange News Service. The methodology for the impact on shareprice followed that of Brown S. J. and Warner J. B. (1980 and 1985) and measures if there were abnormal returns or residuals as a result of the BEE transaction events. Sharpe's Capital Asset Pricing Model was applied to calculate the expected returns. The abnormal returns or residuals were the difference between the expected returns and the actual returns. Further, the residuals were cumulated using the technique described in Fama, Fischer, Jensen and Roll to get Cumulative Average Residuals (CARS) which were plotted on a graph. When there was abnormal return, the CARS' plot resulted in fractiles which could clearly be identified on the CARS' plot. The findings in the book support the hypothesis that different BEE strategies have different effects and impact on the shareprice of the companies.
Using 309 interim reports of 103 FTSE350 LSE Companies in the period 2005 - 2007, the study investigated the relative information content of complementary and supplementary narrative commentaries in UK interim reports. Daily market adjusted cumulative abnormal returns ±5 days around the announcement of interim reports were applied using event studies. Narratives were captured by the disclosure variety and depth index - number of information items, good/bad news, amounts and comparison of current with past performance, reasons for performance and forward-looking. For disclosure variety, supplementary narratives had higher but insignificant importance than complementary narratives. For disclosure depth, complementary narratives had higher and significant importance than supplementary narratives. The results also show that complementary good news, complementary amounts and comparisons of current with past performance and complementary reasons for performance were associated with returns. The analysis should guide policymakers in stock markets, corporate executives, audit firms, regulators and investors, specifically after the financial crisis of 2008.
The stock and securities market should, ideally, react quickly (efficiently) in response to the public announcement of approval of new drug by the Food and Drug Administration (FDA) and the positive abnormal return may be expected for the sponsoring pharmaceutical company on and around the event date i.e. the day of the public announcement of the new drug approval for marketing. This study has found the mixed outcomes. Briefly, the findings are: (a) Existence of statistically significant positive abnormal returns (AR) for the day following the events. (b) The cumulative abnormal return (CAR) is statistically insignificant for the estimates of the pooled regressions and for some of the individual pharmaceutical companies. (c) No sign of information leakage ahead of the events. (d) Some individual pharmaceutical companies show the existence of statistically significant positive abnormal returns (AR) and the cumulative abnormal return (CAR) for event day and the day after (e.g. Novartis, Abbott, Schering Plough). These findings may play a significant role in the decision making process of mutually exclusive investments in the pharmaceutical products.