Abstract

http://ssrn.com/abstract=655361
 
 

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Returns to Acquirers of Listed and Unlisted Targets


Mara Faccio


Purdue University - Krannert School of Management; Centre for Economic Policy Research (CEPR); European Corporate Governance Institute (ECGI)

David Stolin


Toulouse Business School - Economics and Finance

John J. McConnell


Purdue University


Journal of Financial and Quantitative Analysis, Forthcoming

Abstract:     
We examine announcement period abnormal returns to acquirers of listed and unlisted targets in 17 Western European countries over the interval 1996-2001. Acquirers of listed targets earn an insignificant average abnormal return of -0.38%, while acquirers of unlisted targets earn a significant average abnormal return of 1.48%. This "listing effect" in acquirers' returns persists through time and across countries and remains after controlling for the method of payment for the target, the acquirer's size and Tobin's Q, pre-announcement leakage of information about the transaction, whether the acquisition created a blockholder in the acquirer's ownership structure, whether the acquisition was a cross-border deal, and other variables. The fundamental factors that give rise to this listing effect, which has also been documented in US acquisitions, remain elusive.

Keywords: Mergers and acquisitions

JEL Classification: G34

Accepted Paper Series


Not Available For Download

Date posted: January 27, 2005  

Suggested Citation

Faccio, Mara and Stolin, David and McConnell, John J., Returns to Acquirers of Listed and Unlisted Targets. Journal of Financial and Quantitative Analysis, Forthcoming. Available at SSRN: http://ssrn.com/abstract=655361

Contact Information

Mara Faccio (Contact Author)
Purdue University - Krannert School of Management ( email )
1310 Krannert Building
West Lafayette, IN 47907-1310
United States
Centre for Economic Policy Research (CEPR)
77 Bastwick Street
London, EC1V 3PZ
United Kingdom
European Corporate Governance Institute (ECGI)
c/o ECARES ULB CP 114
B-1050 Brussels
Belgium
HOME PAGE: http://www.ecgi.org
David Stolin
Toulouse Business School - Economics and Finance ( email )
20, bd Lascrosses - BP 7010
Toulouse Cedex 7, 31068
France
John J. McConnell
Purdue University ( email )
MGMT, KRAN
403 West State St.
West Lafayette, IN 47907-2056
United States
765-494-5910 (Phone)
765-494-7863 (Fax)
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