The DOI matches its Crossref record; 25 of the 25 references it cites were found in a registry or an index.
The Post‐Merger Performance of Acquiring Firms: A Re‐examination of an Anomaly
Abstract
The existing literature on the post‐merger performance of acquiring firms is divided. We re‐examine this issue, using a nearly exhaustive sample of mergers between NYSE acquirers and NYSE/AMEX targets. We find that stockholders of acquiring firms suffer a statistically significant loss of about 10% over the five‐year post‐merger period, a result robust to various specifications. Our evidence suggests that neither the firm size effect nor beta estimation problems are the cause of the negative post‐merger returns. We examine whether this result is caused by a slow adjustment of the market to the merger event. Our results do not seem consistent with this hypothesis.
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Cites
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Fama, E. F., Fisher, L., Jensen, M. C., & Roll, R. (1969) · International Economic Review · doi:10.2307/2525569 · Cited by 3,575
Measuring security price performance
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The Adjustment of Stock Prices to New Information
Fama, E. F., Fisher, L., Jensen, M. C., & Roll, R. W. (2003) · SSRN Electronic Journal · doi:10.2139/ssrn.321524 · Cited by 3,063
Further Evidence On Investor Overreaction and Stock Market Seasonality
De BONDT, W. F. M., & THALER, R. H. (1987) · The Journal of Finance · doi:10.1111/j.1540-6261.1987.tb04569.x · Cited by 2,373
Does corporate performance improve after mergers?
Healy, P. M., Palepu, K. G., & Ruback, R. S. (1992) · Journal of Financial Economics · doi:10.1016/0304-405x(92)90002-f · Cited by 1,659
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Cited by
Detecting long-run abnormal stock returns: The empirical power and specification of test statistics
Barber, B. M., & Lyon, J. D. (1997) · Journal of Financial Economics · doi:10.1016/s0304-405x(96)00890-2 · Cited by 2,689
Fama (1998) · doi:10.1016/s0304-405x(98)00026-9 · Cited by 2,576
Does the stock market fully value intangibles? Employee satisfaction and equity prices
Edmans, A. (2011) · Journal of Financial Economics · doi:10.1016/j.jfineco.2011.03.021 · Cited by 2,511
Market underreaction to open market share repurchases
Ikenberry, D., Lakonishok, J., & Vermaelen, T. (1995) · Journal of Financial Economics · doi:10.1016/0304-405x(95)00826-z · Cited by 1,733
Corporate social responsibility and stakeholder value maximization: Evidence from mergers
Deng, X., Kang, J.-K., & Low, B. S. (2013) · Journal of Financial Economics · doi:10.1016/j.jfineco.2013.04.014 · Cited by 1,647
Metadata
- Authors
- AGRAWAL, A., JAFFE, J. F., & MANDELKER, G. N.
- Venue
- The Journal of Finance
- Publisher
- Wiley
- Published
- 1992-09
- Volume
- 47
- Issue
- 4
- Pages
- 1605-1621
- ISSN
- 0022-1082 (ISSN-L)
- 1540-6261
- OpenAlex
- W1991552238
- Cited by
- 1,197
- References
- 25
- FWCI
- 41.17
- Type
- journal article
- Language
- en
- Open access
- closed
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- AGRAWAL, A., JAFFE, J. F., & MANDELKER, G. N. (1992). The Post‐Merger Performance of Acquiring Firms: A Re‐examination of an Anomaly. The Journal of Finance. https://doi.org/10.1111/j.1540-6261.1992.tb04674.x
Data sources
Bibliographic data: Semantic Scholar, OpenAlex, Crossref.
Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
