Ekkayokkaya, Manapol and Holmes, Phil and Paudyal, Krishna (2009) Limited information and the sustainability of unlisted-target acquirers’ returns. Journal of Business Finance and Accounting, 36 (9-10). pp. 1201-1227. ISSN 0306-686XFull text not available in this repository. (Request a copy from the Strathclyde author)
Relaxed disclosure requirements of unlisted firms, as compared to publicly listed company, lead to limited quality and quantity of information at bid announcements, causing difficulty in valuing gains from mergers. This raises the question: are the frequently reported superior announcement-period gains to unlisted-target acquirers sustainable in the long run? Our results for the UK show that unlisted-target acquirers gain on announcement, but suffer a substantial loss in the long run. This reversal in fortune of unlisted-target acquirers is in sharp contrast to the performance of listed-target acquirers in the UK. Therefore, short-run gains for unlisted-target acquirers may result from investors' excessive optimism when faced with limited and biased information.
|Keywords:||acquisitions, agency considerations, limited information, target status, Finance, Finance, Business, Management and Accounting (miscellaneous), Accounting|
|Subjects:||Social Sciences > Finance|
|Department:||Strathclyde Business School > Accounting and Finance|
|Depositing user:||Pure Administrator|
|Date Deposited:||29 Mar 2011 14:33|
|Last modified:||04 May 2016 18:01|