Takeovers of Technology Firms: Expectations vs. Reality

Kohers, Ninon; Kohers, Theodor

doi:10.2307/3666375

Cited by 73 publications

(56 citation statements)

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“…Duggal & Millar (1999) report a positive relationship between institutional ownership and acquirers' abnormal returns in the US but argue this positive relationship is driven by firm size and the acquirers' listing on the S&P 500 index, casting doubt on the active monitoring role in the M&As' transactions. However, Kohers & Kohers (2001) show that acquirers with higher institutional ownership have superior post-merger longrun performance. Meanwhile, institutional investors have a significantly lower share turnover rate in the UK compared to the US (Aguilera et al, 2006;Black & Coffee, 1994) suggesting they can have a key role in the monitoring of firms and firms' decision making.…”

Section: Introductionmentioning

confidence: 93%

The market valuation of M&A announcements in the United Kingdom

Andriosopoulos¹,

Yang

2016

International Review of Financial Analysis

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This paper investigates the short-term market reaction to UK acquirers announcing domestic and foreign mergers and acquisitions (M&As) from 2000-2010. We define acquirers as value, moderate and glamour acquirers based on equally weighted market-to-book terciles. We find that value acquirers outperform glamour acquirers during and after the M&A announcement. We also focus on the impact of institutional ownership and find that higher domestic, foreign and total institutional ownership leads to lower market reaction to M&A announcements. We also find that long-term institutional investors lead to a higher post-announcement market performance. Finally, we find that a higher domestic institutional ownership mitigates the typical poor short-term performance following M&A announcements of glamour acquirers

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Section: Introductionmentioning

confidence: 93%

The market valuation of M&A announcements in the United Kingdom

Andriosopoulos¹,

Yang

2016

International Review of Financial Analysis

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“…For example, significant negative short run returns to acquirers have been found by Servaes (1991), Kaplan and Weisbach (1992), Walker (2000) and Houston et al (2001). There is also evidence of negative long run returns, for example, Agrawal et al (1992), Gregory (1997), Rau and Vermaelen (1998) and Kohers and Kohers (2001). Accounting studies such as Ravenscraft and Scherer (1987), Dickerson et al (1997) and Sharma and Ho (2002) also show poorer post-acquisition performance.…”

Section: A Agency Costsmentioning

confidence: 99%

Agency costs, corporate governance mechanisms and ownership structure in large UK publicly quoted companies: A panel data analysis

McKnight¹,

Weir

2009

The Quarterly Review of Economics and Finance

280

218

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“…Although a number of other event periods have been used in previous studies, this two-day (-1, 0) event window is commonly used (Beitel, Schiereck, & Wahrenburg, 2002;Chatfield, Dalbor, & Ramden, 2011;Goergen, & Renneboog, 2003;Kohers, & Kohers, 2001;Kuippers, Miller, & Patel, 2003;Mitchell, & Stafford, 2000;Mulherin, & Boone, 2000). This assumes that all information effects from the announcement are captured in this two-day period.…”

Section: Cash Offersmentioning

confidence: 99%