What Do Returns to Acquiring Firms Tell Us 上海大学 What Do Returns to Acquiring Firms Tell Us Evidence from Firms That Make Many Acquisitions Author KATHLEEN FULLER JEFFRY NETTER MIKE STEGEMOLLER Speaker 崔治学 17721013

CONTENT 中文总结 Paper Structure introduction conclusion approach Data 上海大学 CONTENT Paper Structure 中文总结 introduction approach Data conclusion

上海大学 introduction In sum,we suggest that transactions prices in mergers vary with the type of the target. In terms of prices,bidders receive the best prices when they buy private firms and subsidiaries with equity, then private firms and subsidiaries with cash, then public firms with cash,and finally the worst price for public firms purchased with equity.

Paper Structure 上海大学 Section I SectionIII We review the related literature and discuss our approach. Reports the results and our interpretations. Section II SectionIV Describe the date. Concludes the paper..

上海大学 Approach ※event-study analysis

上海大学 Data ★the target is a public firm, a private firm, or a subsidiary of a public firm. ★The target firm has a disclose dollar value and the bidder is acquiring more than 50 percent of the target firm. ★ The deal value is one million dollars or more. Deal value is defined as the total value of consideration paid by the acquirer, excluding fees and expens. The dollar value includes the amount paid for all common stock equivalents, preferred stock,debt, options, assets,warrants,and stank purchases made

Within six months of the announcement date of the transaction. 上海大学 Within six months of the announcement date of the transaction. ★Acquiring firms are U.S. firms publicly traded on the AMEX,Nasdaq,or NYSE and have five days of return data around the takeover announcement listed on the Center for reasearch in Security Prices(CRSP) file. ★Neither the acquirer nor the target is a utility or a financial institution. ★The acquirer completes bids for five or more target in any three-year windows during the sample period.

上海大学 conclusion Our result indicate that bidder shareholders gain when the bidding firm buys a private firm or a subsidiary of a public firm and lose when the bidder buys a public firm. In addition ,the gain or loss is greater in absolute value when the target is large and when the bidder uses stock

上海大学 中文总结

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