Acquiring firms' stock returns

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dc.contributor.author Raad, Elias
dc.contributor.author Wu, H.K.
dc.date.accessioned 2016-10-27T08:21:46Z
dc.date.available 2016-10-27T08:21:46Z
dc.date.copyright 1994 en_US
dc.date.issued 2016-10-27
dc.identifier.issn 1055-0925 en_US
dc.identifier.uri http://hdl.handle.net/10725/4702 en_US
dc.description.abstract This study examines the effects of the method of payment, change in leverage, and management equity ownership on the acquiring firm's stock returns around the initial announcement date of the merger. Results indicate that stockholders of mergers financed with stocks suffer significant losses. These losses are larger when management ownership is low and smaller in mergers that resulted in acquiring firm leverage decreases. Stockholders of acquiring firms involved in cash mergers gain significant abnormal returns, provided that acquiring firms increase their leverage and that managerial ownership is high. When management equity ownership is low, leverage has no effect on stock returns. When management ownership is high, mergers which resulted in acquiring firm leverage increases have significant positive effects, and those which resulted in acquiring firm leverage decreases have negative but insignificant effects. en_US
dc.language.iso en en_US
dc.title Acquiring firms' stock returns en_US
dc.type Article en_US
dc.description.version Published en_US
dc.title.subtitle methods of payment, change in leverage, and management ownership en_US
dc.author.school SOB en_US
dc.author.idnumber 199590190 en_US
dc.author.department Department of Finance and Accounting (FINA) en_US
dc.description.embargo N/A en_US
dc.relation.journal Journal of Economics and Finance en_US
dc.journal.volume 18 en_US
dc.journal.issue 1 en_US
dc.article.pages 13-29 en_US
dc.identifier.doi http://dx.doi.org/10.1007/BF02920219 en_US
dc.identifier.ctation Raad, E., & Wu, H. K. (1994). Acquiring firms' stock returns: Methods of payment, change in leverage, and management ownership. Journal of Economics and Finance, 18(1), 13-29. en_US
dc.author.email eraad@lau.edu.lb en_US
dc.identifier.tou http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.php en_US
dc.identifier.url http://link.springer.com/article/10.1007/BF02920219 en_US

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