Journal article
Bidder returns and merger anticipation: Evidence from banking deregulation
Journal of corporate finance (Amsterdam, Netherlands), v 15(1), pp 85-98
2009
Abstract
This paper examines the anticipated components of bidder returns by focusing on the banking industry around the passage of interstate deregulation (Riegle Neal Act of 1994). Overall, firms that became bidders after Riegle Neal have large significant positive returns during its passage. Moreover, these positive wealth effects are significantly larger than the effects at the merger announcement. These results suggest that bidder returns are anticipated and focusing only on narrow event windows underestimates gains to bidders. Finally, the positive bidder returns appear to provide evidence against both the entrenchment and hubris hypotheses. Additional tests provide evidence to suggest that mergers are motivated by synergy rather than disciplinary motives.
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Details
- Title
- Bidder returns and merger anticipation: Evidence from banking deregulation
- Creators
- David A. Becher - Drexel University
- Publication Details
- Journal of corporate finance (Amsterdam, Netherlands), v 15(1), pp 85-98
- Publisher
- Elsevier
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Finance
- Web of Science ID
- WOS:000262739800007
- Scopus ID
- 2-s2.0-57749094119
- Other Identifier
- 991019168317504721
InCites Highlights
Data related to this publication, from InCites Benchmarking & Analytics tool:
- Web of Science research areas
- Business, Finance