Abstract
Australia has accounted for over 51 percent of mergers and acquisitions in the Asia Pacific region (excluding Japan) during 2004-2006. This paper investigates the short-horizon and long-horizon wealth effects experienced by shareholders of Australian acquirers following these domestic and cross-border business takeover announcements. The sample consists of 197 announcements. Results for domestic acquisitions suggest that acquirers' shareholders endure abnormal returns in the range of -1.07% and -1.86% per day in the short-horizon. The long-horizon wealth effects, however, were found to be inconclusive. Results for cross-border acquisitions show that acquirers' shareholders endure abnormal returns in the range of 1.02% and 1.26% per day in the short-horizon. This positive wealth effect, however, dissipates in the long-horizon.
| Original language | English |
|---|---|
| Pages (from-to) | 758-771 |
| Number of pages | 14 |
| Journal | Corporate Ownership and Control |
| Volume | 8 |
| Issue number | 1 I |
| DOIs | |
| Publication status | Published - 1 Jan 2010 |
| Externally published | Yes |
Keywords
- Asia Pacific
- Australia
- Business takeovers
- Calendar time methodology
- Domestic and cross-border acquisitions