Returns to Bidding and Target Finns in Hostile Takeovers: Some UK Evidence
This paper explores the returns to bidding and target firms in hostile takeovers and their combined wealth effects on the announcement of the offer in the UK. The findings reveal that bidder firms earn negative and significant abnormal returns, whereas target firms earn positive and significant abno...
| Main Authors: | , |
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| Format: | Article |
| Language: | English English |
| Published: |
1991
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| Online Access: | http://psasir.upm.edu.my/id/eprint/2887/ http://psasir.upm.edu.my/id/eprint/2887/1/Returns_to_Bidding_and_Target_Finns_in_Hostile_Takeovers.pdf |
| _version_ | 1848839373422854144 |
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| author | Mohamad, Shamsher Md Nassir, Annuar |
| author_facet | Mohamad, Shamsher Md Nassir, Annuar |
| author_sort | Mohamad, Shamsher |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | This paper explores the returns to bidding and target firms in hostile takeovers and their combined wealth effects on the announcement of the offer in the UK. The findings reveal that bidder firms earn negative and significant abnormal returns, whereas target firms earn positive and significant abnormal returns. The gains to target firms more than compensate the losses suffered lry bidders as the combined gains are positive and significant. These findings are consistent with those documented in the US. The positive and significant combined gains imply that takeovers are wealth-creating investments, which is consistent with the notion that managers pursue takeovers to maximise wealth rather than size of theirfirm. |
| first_indexed | 2025-11-15T07:10:25Z |
| format | Article |
| id | upm-2887 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English English |
| last_indexed | 2025-11-15T07:10:25Z |
| publishDate | 1991 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-28872013-05-27T07:04:10Z http://psasir.upm.edu.my/id/eprint/2887/ Returns to Bidding and Target Finns in Hostile Takeovers: Some UK Evidence Mohamad, Shamsher Md Nassir, Annuar This paper explores the returns to bidding and target firms in hostile takeovers and their combined wealth effects on the announcement of the offer in the UK. The findings reveal that bidder firms earn negative and significant abnormal returns, whereas target firms earn positive and significant abnormal returns. The gains to target firms more than compensate the losses suffered lry bidders as the combined gains are positive and significant. These findings are consistent with those documented in the US. The positive and significant combined gains imply that takeovers are wealth-creating investments, which is consistent with the notion that managers pursue takeovers to maximise wealth rather than size of theirfirm. 1991 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/2887/1/Returns_to_Bidding_and_Target_Finns_in_Hostile_Takeovers.pdf Mohamad, Shamsher and Md Nassir, Annuar (1991) Returns to Bidding and Target Finns in Hostile Takeovers: Some UK Evidence. Pertanika, 14 (3). pp. 373-381. English |
| spellingShingle | Mohamad, Shamsher Md Nassir, Annuar Returns to Bidding and Target Finns in Hostile Takeovers: Some UK Evidence |
| title | Returns to Bidding and Target Finns in Hostile Takeovers:
Some UK Evidence |
| title_full | Returns to Bidding and Target Finns in Hostile Takeovers:
Some UK Evidence |
| title_fullStr | Returns to Bidding and Target Finns in Hostile Takeovers:
Some UK Evidence |
| title_full_unstemmed | Returns to Bidding and Target Finns in Hostile Takeovers:
Some UK Evidence |
| title_short | Returns to Bidding and Target Finns in Hostile Takeovers:
Some UK Evidence |
| title_sort | returns to bidding and target finns in hostile takeovers:
some uk evidence |
| url | http://psasir.upm.edu.my/id/eprint/2887/ http://psasir.upm.edu.my/id/eprint/2887/1/Returns_to_Bidding_and_Target_Finns_in_Hostile_Takeovers.pdf |