Large Wealth Creation in Mergers and Acquisitions
Eliezer M. Fich,
Tu Nguyen and
Financial Management, 2018, vol. 47, issue 4, 953-991
We examine completed mergers and acquisitions (M&A) deals with large acquirer shareholder dollar wealth gains at announcement. We find that large‐gain acquisitions are: 1) typically “bolt‐on” deals that are small relative to the acquirer's size, 2) transaction‐specific events (not firm‐ or chief executive officer (CEO)‐specific events), 3) enhanced by synergies of the merged firm, and 4) executed by bidders with high valuation multiples. These findings provide important insight into the factors associated with considerable wealth creation for acquirer shareholders in M&A deals.
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:bla:finmgt:v:47:y:2018:i:4:p:953-991
Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0046-3892
Access Statistics for this article
Financial Management is currently edited by William G. Christie
More articles in Financial Management from Financial Management Association International Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().