The Analysis of Mergers and Acquisitions

Abstract

495 4. Examples of the first technique are [5, 12 and 14] and of the second technique are [1 and 7]. 5. This was pointed out by Weston and Mansinghka [14]. 6. The opposite bias is also potentially present. That is if the merging firm yielded a return above that of the sample before the merger and this return declined as a result of the merger, but not below the average, then this would be judged a successful merger. 7. In addition to these criticisms, some studies [1, 7] failed to include dividends. * 1967 is not shown because American Potash merged with Kerr-McGee Corporation in 1967. ** All prices are adjusted for stock splits and dividends.