Long-run Post Takeover Stock Return: the Impact of Overlapping Return, Takeover Premium, and Method of Payment
نویسندگان
چکیده
This paper examines the impact of overlapping return, takeover premium, and method of payment to the long-run post takeover stock return. First, we do not find any statistically significant three-year post takeover abnormal return. Second, we find evidence that overlapping stock return inflates the conventional t-test statistic. Third, we do not find any direct evidence that long-run post takeover underperformance is due to overpriced takeovers. Finally, we examine four common financing methods of takeovers, and find stock offer underperforms the other three methods of payment.
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