Value creation from M&As: new evidence

Alexandridis, G., Antypas, N. ORCID: https://orcid.org/0000-0001-8046-4590 and Travlos, N. (2017) Value creation from M&As: new evidence. Journal of Corporate Finance, 45. pp. 632-650. ISSN 0929-1199 doi: 10.1016/j.jcorpfin.2017.05.010

Abstract/Summary

M&A deals create more value for acquiring firm shareholders post-2009 than ever before. Public acquisitions fuel positive and statistically significant abnormal returns for acquirers while stock-for-stock deals no longer destroy value. Mega deals, priced at least $500mil, typically associated with more pronounced agency problems, investor scrutiny and media attention, seem to be driving the documented upturn. Acquiring shareholders now gain $62mil around the announcement of such deals; a $325 mil gain improvement compared to 1990-2009. The corresponding synergistic gains have also catapulted to more than $542mil pointing to overall value creation from M&As on a large scale. Our results are robust to different measures and controls and appear to be linked with profound improvements in the quality of corporate governance among acquiring firms in the aftermath of the 2009 financial crisis.

Item Type	Article
URI	https://reading-clone.eprints-hosting.org/id/eprint/70385
Identification Number/DOI	10.1016/j.jcorpfin.2017.05.010
Refereed	Yes
Divisions	Henley Business School > Finance and Accounting
Publisher	Elsevier
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