Shareholder Returns for Internationalmergers in the U.S.

Abstract

The number of mergers in the U.S.A. increased from 2,339 in 1983 to 3,701 in 1987—an increase of 58.23 per cent. Over the same time period the value of mergers increased from $51.89 billion to $167.48 billion—an increase of 323 per cent. Merger activities of this magnitude can be expected to attract a great deal of attention, and they have.

Banking Stock Abnormal Return Analysis of Pre and Post Merger and Acquisition in Indonesia

“…Corrnet (1991) said that if there is a significant positive return on the targeting bank. Ottone and Murgia (2000) with Bank data in Europe from 1988-1997and Marthur (1989 using company data from Australia, Canada, France, Japan, the Netherlands, Sweden, UK, and West Germany which stated the changes occurred at the time of the announcement of the occurrence merger and acquisition decisions that raised prices by 26%. But in the research of Yeh and Hoshino (2001), they examined 28 banks in Japan in 1981-1998 and found that mergers did not increase company wealth but could add to the company's long-term profits.…”

An analysis of gains and losses to shareholders of foreign bidding companies engaged in cross-border acquisitions into the United Kingdom, 1986–1991

“…It should be remembered, however, that the UK was only one of the target countries included in these studies. With regard to studies analysing cross-border acquisitions into the United States, several papers have established (insignificant) short-term abnormal losses to the cross-border bidders (Mathur, Chhachhi, and Sundaram (1989), Servaes andZenner (1990), andSong (1993)). It should be remembered, however, that the positive t=0 abnormal returns observed in this study are not statistically significant and, as discussed further below, the bidding companies, on average, experienced significant negative abnormal returns over the period following the bid announcement.…”