Evaluation of Post-Merger Performance of Public Listed Companies in the UK

DOI

10.2991/isbcd-17.2017.13How to use a DOI?

Keywords

Post-merger performance, merger and acquisitions, value creation, cumulative abnormal returns (CARs), UK stock market

Abstract

The objective of this study is to examine whether merger creates value for shareholders in short run. This study is based on a near-exhaustive sample of UK public listed companies during 1993 and 2000, total of 237 takeovers. The acquirers are UK based companies. Results show that merger and acquisitions do create value for target companies, and shareholders of acquiring firm earn negative abnormal returns. The results for short run Cumulative abnormal returns (CARs) indicate that the stocks market is inefficient. And under inefficient market, merger and acquisitions do create value for shareholders of bidders when the payment method is appropriately chosen.

Copyright

© 2017, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Download article (PDF)

TY  - CONF
AU  - Xiaojiao Ye
AU  - Ying Zhang
PY  - 2017/10
DA  - 2017/10
TI  - Evaluation of Post-Merger Performance of Public Listed Companies in the UK
BT  - Proceedings of the 2nd International Symposium on Business Corporation and Development in South-East and South Asia under B&R Initiative (ISBCD 2017)
PB  - Atlantis Press
SP  - 57
EP  - 61
SN  - 2352-5428
UR  - https://doi.org/10.2991/isbcd-17.2017.13
DO  - 10.2991/isbcd-17.2017.13
ID  - Ye2017/10
ER  -