Danbolt, J. (1995) An analysis of gains and losses to shareholders of foreign bidding companies engaged in cross-border acquisitions into the United Kingdom, 1986-1991. European Journal of Finance, 1(3), pp. 279-309. (doi: 10.1080/13518479500000021)
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Publisher's URL: http://dx.doi.org/10.1080/13518479500000021
Abstract
In this paper the gains and losses to shareholders of 71 foreign companies which made takeover bids for companies listed in the United Kingdom during the 1986-1991 period are analysed. The average abnormal return during the month of the bid announcement was positive, although not statistically significant. However, both prior to and sub-sequent to the bid announcement month, the overseas bidders earned highly significant negative abnormal returns. The cumulative abnormal returns over the five month period following the bid announcement were-4.77% with the index model and -9.79% with the market model. Further analysis established that Continental European companies performed significantly worse than American bidders. In addition, large companies and companies bidding for large targets, performed significantly better than the other bidders.
Item Type: | Articles |
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Keywords: | Cross-border, acquisitions, takeovers, bidders. |
Status: | Published |
Refereed: | Yes |
Glasgow Author(s) Enlighten ID: | Danbolt, Prof Jo |
Authors: | Danbolt, J. |
Subjects: | H Social Sciences > HB Economic Theory |
College/School: | College of Social Sciences > Adam Smith Business School > Accounting and Finance |
Journal Name: | European Journal of Finance |
Publisher: | Routledge |
ISSN: | 1466-4364 |
Copyright Holders: | Copyright © 1995 Routledge |
First Published: | First published in European Journal of Finance 1(3):279-309 |
Publisher Policy: | Reproduced in accordance with the copyright policy of the publisher. |
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