Conditional returns to shareholders of bidding Firms: an Australian study
This study examines the importance of the self-selection problem when evaluating returns to bidder firms around announcement events. Takeover announcements are not random because managers decide rationally whether to bid or not, which indicates announcements are timed; consequently, in the presence...
| Main Author: | |
|---|---|
| Format: | Journal Article |
| Published: |
Wiley-Blackwell Publishing Asia
2015
|
| Subjects: | |
| Online Access: | http://hdl.handle.net/20.500.11937/15479 |
| _version_ | 1848748904210759680 |
|---|---|
| author | Akhtar, Farida |
| author_facet | Akhtar, Farida |
| author_sort | Akhtar, Farida |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | This study examines the importance of the self-selection problem when evaluating returns to bidder firms around announcement events. Takeover announcements are not random because managers decide rationally whether to bid or not, which indicates announcements are timed; consequently, in the presence of the sample selection problem, standard ordinary least square estimates are biased. Using a conditional model, the results indicate that after controlling for the self-selection bias effect, shareholders of bidder firms make normal returns. In sum, failing to account for sample selection bias may lead to erroneous conclusions about a bidder’s true economic wealth effects around an announcement event. |
| first_indexed | 2025-11-14T07:12:27Z |
| format | Journal Article |
| id | curtin-20.500.11937-15479 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T07:12:27Z |
| publishDate | 2015 |
| publisher | Wiley-Blackwell Publishing Asia |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-154792017-09-13T13:41:03Z Conditional returns to shareholders of bidding Firms: an Australian study Akhtar, Farida Sample selection bias This study examines the importance of the self-selection problem when evaluating returns to bidder firms around announcement events. Takeover announcements are not random because managers decide rationally whether to bid or not, which indicates announcements are timed; consequently, in the presence of the sample selection problem, standard ordinary least square estimates are biased. Using a conditional model, the results indicate that after controlling for the self-selection bias effect, shareholders of bidder firms make normal returns. In sum, failing to account for sample selection bias may lead to erroneous conclusions about a bidder’s true economic wealth effects around an announcement event. 2015 Journal Article http://hdl.handle.net/20.500.11937/15479 10.1111/acfi.12149 Wiley-Blackwell Publishing Asia restricted |
| spellingShingle | Sample selection bias Akhtar, Farida Conditional returns to shareholders of bidding Firms: an Australian study |
| title | Conditional returns to shareholders of bidding Firms: an Australian study |
| title_full | Conditional returns to shareholders of bidding Firms: an Australian study |
| title_fullStr | Conditional returns to shareholders of bidding Firms: an Australian study |
| title_full_unstemmed | Conditional returns to shareholders of bidding Firms: an Australian study |
| title_short | Conditional returns to shareholders of bidding Firms: an Australian study |
| title_sort | conditional returns to shareholders of bidding firms: an australian study |
| topic | Sample selection bias |
| url | http://hdl.handle.net/20.500.11937/15479 |