ISSN:
1573-6911
Keywords:
Mergers
;
acquiring firms
;
abnormal returns
;
post-merger performance
;
L11
;
G34
;
N21
;
N22
Source:
Springer Online Journal Archives 1860-2000
Topics:
Economics
Notes:
Abstract From the standpoint of investors successful acquisitions increase profitability and stock Contemporary studies find acquiring firm shareholders earning small gains before and large losses after consolidation. Using modern financial market procedures, we examine a portfolio of 191 acquiring firms from 1905 to 1930 to determine the impact on firm owners of early industrial acquisitions in the United States and the effect of institutional changes on takeover gains. Acquisitions from 1905 to 1930 raised shareholder wealth by more than 3 percent, an increase exceeding gains from more recent mergers. Stock price continued to rise after completion for acquisitions before World War I, but fell dramatically for acquisitions during the oligopoly merger wave of the late 1920s.
Type of Medium:
Electronic Resource
URL:
http://dx.doi.org/10.1007/BF01384145
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