The performance and motivation of serial acquisitions: Evidence from Australia
Using 2696 acquisition announcements reported in Australia between 2000 and 2016, we document lower stock returns but higher risk for deals made by serial acquirers compared to those made by single acquirers after controlling for firm and deal characteristics. We also find that serial acquirers'...
| Main Authors: | , , |
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| Format: | Journal Article |
| Language: | English |
| Published: |
ELSEVIER SCIENCE INC
2021
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| Subjects: | |
| Online Access: | http://hdl.handle.net/20.500.11937/88085 |
| _version_ | 1848764956227403776 |
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| author | Hossain, M.M. Pham, M.D. Islam, Nahid |
| author_facet | Hossain, M.M. Pham, M.D. Islam, Nahid |
| author_sort | Hossain, M.M. |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | Using 2696 acquisition announcements reported in Australia between 2000 and 2016, we document lower stock returns but higher risk for deals made by serial acquirers compared to those made by single acquirers after controlling for firm and deal characteristics. We also find that serial acquirers' underperformance relative to single acquirers is more pronounced when managers gain more control over their firm's resources. Further analysis reveals that the outcome of the first transactions is key to deriving serial acquisitions' motivation and performance. |
| first_indexed | 2025-11-14T11:27:35Z |
| format | Journal Article |
| id | curtin-20.500.11937-88085 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T11:27:35Z |
| publishDate | 2021 |
| publisher | ELSEVIER SCIENCE INC |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-880852022-03-22T00:59:47Z The performance and motivation of serial acquisitions: Evidence from Australia Hossain, M.M. Pham, M.D. Islam, Nahid Social Sciences Business, Finance Business & Economics Mergers and acquisitions Overconfidence Serial acquirers Overinvestment Australia CEO OVERCONFIDENCE MERGER GAINS FIRMS DESTRUCTION RETURNS WEALTH PRICE Using 2696 acquisition announcements reported in Australia between 2000 and 2016, we document lower stock returns but higher risk for deals made by serial acquirers compared to those made by single acquirers after controlling for firm and deal characteristics. We also find that serial acquirers' underperformance relative to single acquirers is more pronounced when managers gain more control over their firm's resources. Further analysis reveals that the outcome of the first transactions is key to deriving serial acquisitions' motivation and performance. 2021 Journal Article http://hdl.handle.net/20.500.11937/88085 10.1016/j.irfa.2021.101827 English ELSEVIER SCIENCE INC restricted |
| spellingShingle | Social Sciences Business, Finance Business & Economics Mergers and acquisitions Overconfidence Serial acquirers Overinvestment Australia CEO OVERCONFIDENCE MERGER GAINS FIRMS DESTRUCTION RETURNS WEALTH PRICE Hossain, M.M. Pham, M.D. Islam, Nahid The performance and motivation of serial acquisitions: Evidence from Australia |
| title | The performance and motivation of serial acquisitions: Evidence from Australia |
| title_full | The performance and motivation of serial acquisitions: Evidence from Australia |
| title_fullStr | The performance and motivation of serial acquisitions: Evidence from Australia |
| title_full_unstemmed | The performance and motivation of serial acquisitions: Evidence from Australia |
| title_short | The performance and motivation of serial acquisitions: Evidence from Australia |
| title_sort | performance and motivation of serial acquisitions: evidence from australia |
| topic | Social Sciences Business, Finance Business & Economics Mergers and acquisitions Overconfidence Serial acquirers Overinvestment Australia CEO OVERCONFIDENCE MERGER GAINS FIRMS DESTRUCTION RETURNS WEALTH PRICE |
| url | http://hdl.handle.net/20.500.11937/88085 |