 DO M&A ENHANCE VALUES? MIXED METHODS AND EVIDENCEAmporn Soongswang Journal of Applied Economic Sciences, 2012, vol. 7, issue 3(21)/ Fall 2012, 312-325 Abstract: This study features the impact of takeovers on the event firms traded on the Stock Exchange of Thailand (SET). The study investigates a long-window abnormal return, or during a period of twelve months before and after the announcements using several metrics. The traditional models and the latest research method were employed for the abnormal return estimation for the bid period. These are the market and market-adjusted models and the matched reference portfolio of firms. The cumulative abnormal return (CAR), buy-and-hold abnormal return (BHAR) and monthly average abnormal return methods were used for the measurement of the returns of the two sets of firms. Both parametric and non-parametric test statistics were also used. The results suggest that target firm’s shareholders gain substantial and positive abnormal returns; meanwhile bidding firm’s shareholders realize positive rather than negative abnormal returns. The total gains are positive at 37.63% explaining takeovers create values. Keywords: M&A; takeover; total gain; shareholder wealth; event study; Thailand (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ush:jaessh:v:7:y:2012:i:3(21)_fall2012:p:312 Access Statistics for this article Journal of Applied Economic Sciences is currently edited by Laura Stefanescu More articles in Journal of Applied Economic Sciences from Spiru Haret University, Faculty of Financial Management and Accounting Craiova Contact information at EDIRC. |
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