Evaluation of merger premium and firm performance in Europe

Autor:	Daniel Aghanya, Matthias Nnadi
Jazyk:	angličtina
Rok vydání:	2015
Předmět:	Economics and Econometrics 050208 finance premiums Time trends 05 social sciences Control (management) acquisition Monetary economics Europe returns Accounting 0502 economics and business Mergers and acquisitions Economics mergers 050203 business & management Finance performance
Popis:	This paper investigates whether the deal premium affects the performance of the acquiring firms in European mergers and acquisitions (M&As) deals for the period 2000–2013. We find a significant reduction in short-term performance of the acquiring firms after the M&As, reflecting the overpayment hypothesis. Our result also indicates that the negative effect on the performance of the acquiring firms is less pronounced in the long-term. The result confirms the synergy hypothesis and the existence of quadratic relationship between high premium and performance. Our findings are robust as we control for firm and time trends. The findings of our study have implications for companies engaging in acquisitions in Europe.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_dedup___::10e4bf2e16c589ea4bf4166dc77a4f5e http://dspace.lib.cranfield.ac.uk/handle/1826/13201 Zobrazit plný text záznamu