Hussain, Tanveer and Loureiro, Gilberto (2023) Target industry takeover competition and the wealth effects of mergers and acquisitions: International evidence. Journal of International Financial Markets, Institutions and Money, 89. p. 101865. DOI https://doi.org/10.1016/j.intfin.2023.101865
Hussain, Tanveer and Loureiro, Gilberto (2023) Target industry takeover competition and the wealth effects of mergers and acquisitions: International evidence. Journal of International Financial Markets, Institutions and Money, 89. p. 101865. DOI https://doi.org/10.1016/j.intfin.2023.101865
Hussain, Tanveer and Loureiro, Gilberto (2023) Target industry takeover competition and the wealth effects of mergers and acquisitions: International evidence. Journal of International Financial Markets, Institutions and Money, 89. p. 101865. DOI https://doi.org/10.1016/j.intfin.2023.101865
Abstract
This paper studies how target industry takeover competition affects shareholder gains around mergers and acquisitions (M&As). We find that target industries with higher M&A activity negatively (positively) affect bidder (target) announcement returns, while the impact on bidder-target combined returns is negligible. The results corroborate the overpayment argument of acquiring targets from competitive industries. Importantly, we document that the lower bidder announcement returns associated with higher industry takeover competition are mitigated when bidders are from countries with better institutional quality, suggesting that country governance can prevent bidder managers from overpaying the targets.
Item Type: | Article |
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Uncontrolled Keywords: | Industry takeover competition Mergers and acquisitions M&A returns; corporate governance |
Divisions: | Faculty of Social Sciences Faculty of Social Sciences > Essex Business School |
SWORD Depositor: | Unnamed user with email elements@essex.ac.uk |
Depositing User: | Unnamed user with email elements@essex.ac.uk |
Date Deposited: | 03 Nov 2023 13:34 |
Last Modified: | 30 Oct 2024 21:27 |
URI: | http://repository.essex.ac.uk/id/eprint/36650 |
Available files
Filename: JIFMIM.pdf
Licence: Creative Commons: Attribution-Noncommercial-No Derivative Works 4.0
Embargo Date: 27 October 2025