Market valuation and acquiring firm performance in the short and long termOut-of-sample evidence from Spain

  1. José E. Farinós 1
  2. Begoña Herrero 1
  3. Miguel A. Latorre 1
  1. 1 University of Valencia, Valencia, Spain
Aldizkaria:
Business Research Quarterly

ISSN: 2340-9444,  2340-9436

Argitalpen urtea: 2020

Alea: 23

Zenbakia: 1

Mota: Artikulua

DOI: 10.1177/2340944420901048 DIALNET GOOGLE SCHOLAR lock_openSarbide irekia editor

Beste argitalpen batzuk: Business Research Quarterly

Laburpena

Investigamos el desempeño de los licitadores a corto y largo plazo en períodos de mercado de alta y baja valoración en respuesta a anuncios de adquisiciones realizados por empresas cotizadas españolas durante el período 1991-2016. Encontramos que los adquirentes de objetivos no cotizados reaccionan completamente en la fecha del anuncio en períodos de alta valoración, mientras que la infrareacción de los postores objetivo cotizados en el momento del anuncio en mercados de baja valoración es el resultado de la continuación de la rentabilidad. Además, encontramos que la reacción del mercado no depende de la historia reciente de fusiones. Por lo tanto, proporcionamos evidencia de que la reacción de los postores a las adquisiciones no es consistente con las predicciones del sentimiento del mercado (optimismo) después de controlar por el estado de cotización de la empresa objetivo, sin respaldar, para un mercado más delgado como el español, la evidencia observada en EE. UU. y mercados del Reino Unido.

Erreferentzia bibliografikoak

  • Andrade, G., Mitchell, M., Stafford, E., 2001. New evidence and perspectives on mergers. J. Econ. Perspect. 15, 103–120.
  • Antoniou, A., Guo, J., Petmezas, D., 2008. Merger momentum and market valuations: the UK evidence. Appl. Financ. Econ. 34, 1411–1423.
  • Baker, M., Wurgler, R., 2011. Behavioural corporate finance: an updated survey. In: Constantinides, G.M., Harris, M., Stulz, R.M. (Eds.), Handbook of the Economics of Finance. Handbooks in Economics, vol. 2. Elsevier, New York, NY.
  • Bayless, M., Chaplinsky, S., 1996. Is there a window of opportunity for seasoned equity issuance? J. Finance 51, 253–278.
  • Bouwman, C., Fuller, K., Nain, A., 2009. Market valuation and acquisition quality: empirical evidence. Rev. Financ. Stud. 22, 633–679.
  • Brous, P.A., Datar, V., Kini, O., 2001. Is the market optimistic about the future earnings of seasoned equity offerings firms? J. Financ. Quant. Anal. 36, 141–168.
  • Chang, S., 1998. Takeovers of privately held targets, methods of payment, and bidder returns. J. Finance 53, 773–784.
  • Chidambaran, N.K., John, K., Shangguan, Z., Vasudevan, G., 2010. Hot and cold merger markets. Rev. Quant. Finance Account. 34 (3), 327–349.
  • Chuang, K.S., 2018. Glamour versus value, market timing and firm performance: evidence from mergers and acquisitions. Rev. Quant. Finance Account. 51 (4), 967–1003.
  • Croci, E., Petmezas, D., Vanganos-Nanos, E., 2010. Managerial over-confidence in high and low valuation markets and gains to acquisitions. Int. Rev. Financ. Anal. 19, 368–378.
  • Cusatis, P., Miles, J., Woolridge, J., 1993. Restructuring through spinoffs. J. Financ. Econ. 33, 293–311.
  • Danbolt, J., Siganos, A., Vagenas-Nanos, E., 2015. Investor sentiment and bidder announcement abnormal returns. J. Corp. Finance 33, 164–179.
  • Denis, D.J., Sharin, A., 2001. Is the market surprised by poor earnings realizations following seasoned equity offerings? J. Financ. Quant. Anal. 36, 169–193.
  • Desai, H., Jain, P., 1997. Long-run common stock returns following splits and reverse splits. J. Bus. 70, 409–433.
  • Draper, P., Paudyal, K., 2006. Acquisitions: private versus public. Eur. Financ. Manage. 12, 57–80.
  • Eckbo, B.E., Norli, Ø., 2005. Liquidity risk, leverage and longrun IPO returns. J. Corp. Finance 11, 1–35.
  • Efron, B., 1982. The Jackknife,Bootstrap, and Other Resampling Plans. Society for Industrial and Applied Mathematics, University City Science Center, Philadelphia, PA.
  • Fama, E.F., 1998. Market efficiency, long-term returns, and behavioural finance. J. Financ. Econ. 49, 283–306.
  • Fama, E.F., French, K.R., 1993. Common risk factors in the returns on stocks and bonds. J. Financ. Econ. 33, 3–56.
  • Farinós, J.E., Herrero, B., Latorre, M.A., 2017. The decision to acquire listed vs. unlisted firms: determinants and value effects in the Spanish stock market. Rev. Econ. Apl. 73, 55–94.
  • Farinós, J.E., Herrero, B., Latorre, M.A., 2011. Corporate entrepreneurship and acquisitions: creating firm wealth. Int. Entrep. Manage. J. 7, 325–339.
  • Graham, J., Campbell, R., Puri, M., 2013. Managerial attitudes and corporate actions. J. Financ. Econ. 109, 103–121.
  • Ikenberry, D., Rankine, G., Stice, E., 1996. What do stock splits really signal? J. Financ. Quant. Anal. 31, 357–377.
  • Jacobs, H., 2015. What explain the dynamics of 100 anomalies? J. Bank. Finance 57, 65–86.
  • Kadiyala, P., Rau, P., 2004. Investor reaction to corporate event announcements: underreaction or overreaction? J. Bus. 77, 357–386.
  • Korajczyk, R., Lucas, D., McDonald, R., 1991. The effect of information releases on the pricing and timing of equity issues. Rev. Financ. Stud. 4, 685–708.
  • Lakonishok, J., Vermaelen, T., 1990. Anomalous price behaviour around purchase tender offers. J. Finance 45, 455–477.
  • Latorre, M.A., Herrero, B., Farinós, J.E., 2014. Do acquirers’ stock prices fully react to the acquisition announcement of listed versus unlisted target firms? Out-of-sample evidence from Spain. Appl. Econ. Lett. 21, 1075–1078.
  • Loughran, T., Vijh, A.M., 1997. Do long-term shareholders benefit from corporate acquisitions? J. Finance 52, 1765–1790.
  • Michaely, R., Thaler, R., Womack, K., 1995. Price reactions to dividend initiations and omissions. J. Finance 38, 1597–1606.
  • Mitchell, M.L., Stafford, E., 2000. Managerial decisions and long-term stock price performance. J. Bus. 73, 287–329.
  • Moeller, S.B., Schlingemann, F.P., Stulzc, R.M., 2004. Firm size and the gains from acquisitions. J. Financ. Econ. 73, 201–228.
  • Moschieri, C., Campa, J.M., 2014. New trends in mergers and acquisitions: idiosyncrasies of the European market. J. Bus. Res. 67, 1478–1485.
  • Nguyen, H.T., Yung, K., Sun, Q., 2012. Motives for mergers and acquisitions: ex-post market evidence from the US. J. Bus. Finance Account. 39, 1357–1375.
  • Petmezas, D., 2009. What drives acquisitions? Market valuations and bidder performance. J. Multinat. Financ. Manage. 19, 54–74.
  • Porter, J., Singh, H., 2010. What factors drive takeovers in Australia? Int. J. Bus. Econ. 9, 8–103.
  • Rangan, S., 1998. Earnings management and the performance of seasoned equity offerings. J. Financ. Econ. 50, 101–122.
  • Rau, P.R., Vermaelen, T., 1998. Glamour, value and the postacquisition performance of acquiring firms. J. Financ. Econ. 49, 223–253.
  • Roll, R., 1986. The Hubris hypothesis of corporate takeovers. J. Bus. 59, 197–216.
  • Rosen, R., 2006. Merger momentum and investor sentiment. The stock market reaction to merger announcements. J. Bus. 79, 987–1017.
  • Shefrin, H., 2001. Behavioural corporate finance. J. Appl. Corp. Finance 14, 113–126.
  • Shivakumar, L., 2000. Do firms mislead investors by overstating earnings before seasoned equity offerings? J. Account. Econ. 29, 339–371.
  • Wehrens, R., Putter, H., Buydens, L., 2000. The bootstrap: a tutorial. Chemom. Intell. Lab. Syst. 54 (1), 35–52.
  • Zaremba, A., 2016. Risk-based explanation for the country-level size and value effects. Finance Res. Lett. 18, 226–233.
  • Zaremba, A., Grobelny, P., 2017. Merger imbalance and returns in international equity markets. Invest. Anal. J. 46 (2), 117–131.
  • Zaremba, A., Szyszka, A., Płotnicki, M., Grobelny, P., 2018. Post-merger returns in frontier markets, or how we learned to stop worrying and love the acquirers. J. Bus. Econ. Manage. 19 (1), 96–109.
Datuen iturria: Dialnet