Stock Price Behavior Of Acquirers And Targets Due To M&A Announcement In USA Banking

stock price behavior of acquirers and targets due to m&a announcement in usa banking

Pregledni rad STOCK PRICE REACTION TO DIVIDEND ANNOUNCEMENT IN CROATIA

The aim of this research is to analyze the connection between dividend announcement and stock price on Croatian capital market using event study methodology. Research period was the period from the year 2007 to the year 2009. Results have confirmed that dividend change has statistically significant value for investors. Dividend increase and dividend decrease resulted with statistically signific...

Multicriteria classification models for the identification of targets and acquirers in the Asian banking sector

The purpose of the present study is the development of classification models that could be used in the identification of acquirers and targets in the Asian banking sector. We use a sample of 52 targets and 47 acquirers that were involved in acquisitions in 9 Asian banking markets during 1998-2004 and match them by country and time with an equal number of non-involved banks. The models are devel...

Earnings management, lawsuits, and stock-for-stock acquirers’ market performance

There is a positive association between stock-for-stock acquirers’ pre-merger abnormal accruals and post-merger announcement lawsuits. The market only partially anticipates the effects of post-merger announcement lawsuits at the merger announcement and the post-merger announcement long-term market underperformance is largely limited to litigated acquisitions. Overall, the evidence suggests that...

Identifying Targets and Acquirers in Bank Mergers

The relationship between the target and acquiring banks in a bank merger is examined to determine if any factors contribute to the likelihood of a bank merger. Logistic models are used in an attempt to model the merger decision of both the target and the acquirer banks. I find some evidence larger banks holding riskier portfolios are more likely to acquire other banks. ** The author would like ...

Run-up of Acquirer’s Stock in Public and Private Acquisitions*

Acquisition announcements generate predictable movements in the price of the acquirer’s stock. For example, post-announcement returns are typically negative for high Tobin’s q acquirers, stock transactions, and foreign targets, but positive for private equity-backed private targets. Pre-announcement trading of acquirer’s stock is more likely to be attributable to insider trading when the pre-an...