Methods of payment, direct takeovers and privately-held targets: evidence of bidder's return on takeovers
This study examines whether the proposed acquisition announcement on methods of payment has an impact on the bidder's returns behaviour. The analysIs uses the event study technique. the naive model. a model that is based on the market model with constrained a = 0 and f3 = 1 to compute the abnor...
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| Format: | Article |
| Language: | en |
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Penerbit Universiti Kebangsaan Malaysia
2006
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| Online Access: | http://journalarticle.ukm.my/8068/1/871-1653-1-SM.pdf http://journalarticle.ukm.my/8068/ http://ejournal.ukm.my/pengurusan/issue |
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| _version_ | 1831356356846682112 |
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| author | Fauzias Mat Nor, Razali Ismail, |
| author_facet | Fauzias Mat Nor, Razali Ismail, |
| author_sort | Fauzias Mat Nor, |
| building | Tun Sri Lanang Library |
| collection | Institutional Repository |
| content_provider | Universiti Kebangsaan Malaysia |
| content_source | UKM Journal Article Repository |
| continent | Asia |
| country | Malaysia |
| description | This study examines whether the proposed acquisition announcement on methods of payment has an impact on the bidder's returns behaviour. The analysIs uses the event study technique. the naive model. a model that is based on the market model with constrained a = 0 and f3 = 1 to compute the abnormal returns and to evaluate the effects of the proposed acquisition announcement on the bidder's returns. The study finds that Malaysian investors appear to he not in favour of cash-based acquisition to be done
directly by the bidding company as shown by the significant negative results on the bidder's average residuals after the announcement date. The same
goes for acquisition that targets private limited company. The insignificant results obtained on the announcement dale itself may give an Indication that such announcements do not really bring "surprisingly good news" to investors. However, the significant positive results of the bidder's average reSidual on acquisition by equity on and after the announcement. either to be done directly or on private limited takeover, may give an implication that the use of equity conveys favourable information about the bidding firms and are value relevant. |
| format | Article |
| id | my-ukm.journal-8068 |
| institution | Universiti Kebangsaan Malaysia |
| language | en |
| publishDate | 2006 |
| publisher | Penerbit Universiti Kebangsaan Malaysia |
| record_format | eprints |
| spelling | my-ukm.journal-80682016-12-14T06:46:06Z http://journalarticle.ukm.my/8068/ Methods of payment, direct takeovers and privately-held targets: evidence of bidder's return on takeovers Fauzias Mat Nor, Razali Ismail, This study examines whether the proposed acquisition announcement on methods of payment has an impact on the bidder's returns behaviour. The analysIs uses the event study technique. the naive model. a model that is based on the market model with constrained a = 0 and f3 = 1 to compute the abnormal returns and to evaluate the effects of the proposed acquisition announcement on the bidder's returns. The study finds that Malaysian investors appear to he not in favour of cash-based acquisition to be done directly by the bidding company as shown by the significant negative results on the bidder's average residuals after the announcement date. The same goes for acquisition that targets private limited company. The insignificant results obtained on the announcement dale itself may give an Indication that such announcements do not really bring "surprisingly good news" to investors. However, the significant positive results of the bidder's average reSidual on acquisition by equity on and after the announcement. either to be done directly or on private limited takeover, may give an implication that the use of equity conveys favourable information about the bidding firms and are value relevant. Penerbit Universiti Kebangsaan Malaysia 2006 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/8068/1/871-1653-1-SM.pdf Fauzias Mat Nor, and Razali Ismail, (2006) Methods of payment, direct takeovers and privately-held targets: evidence of bidder's return on takeovers. Jurnal Pengurusan, 25 . pp. 19-45. ISSN 0127-2713 http://ejournal.ukm.my/pengurusan/issue |
| spellingShingle | Fauzias Mat Nor, Razali Ismail, Methods of payment, direct takeovers and privately-held targets: evidence of bidder's return on takeovers |
| title | Methods of payment, direct takeovers and privately-held targets: evidence of bidder's return on takeovers |
| title_full | Methods of payment, direct takeovers and privately-held targets: evidence of bidder's return on takeovers |
| title_fullStr | Methods of payment, direct takeovers and privately-held targets: evidence of bidder's return on takeovers |
| title_full_unstemmed | Methods of payment, direct takeovers and privately-held targets: evidence of bidder's return on takeovers |
| title_short | Methods of payment, direct takeovers and privately-held targets: evidence of bidder's return on takeovers |
| title_sort | methods of payment, direct takeovers and privately-held targets: evidence of bidder's return on takeovers |
| url | http://journalarticle.ukm.my/8068/1/871-1653-1-SM.pdf http://journalarticle.ukm.my/8068/ http://ejournal.ukm.my/pengurusan/issue |
| url_provider | http://journalarticle.ukm.my/ |