Post-Takeover Effects on Thai Bidding Firms
David E. Allen
University of South Australia; School of Mathematics and Statistics, The University of Sydney; Financial Research Network (FIRN)
Shinawatra University - School of Management (SOM)
This study features an analysis of takeover effects on the Thai stock market and focuses on the impact on bidding firms. The study is motivated by the paucity of studies of Thai bidding firms as well as the lack of information about their long-term performance. The measures used for abnormal return measurement and for significance testing include a matched reference portfolio control and bootstrapped skewness-adjusted t-statistics. The findings are consistent with past studies, including those in the U.S., U.K. and Australia and also supportive of the survey studies by Jensen and Ruback (1983), Agrawal and Jaffe (1999), Bruner (2002) and Campa and Hernando (2004). Takeover announcements ultimately result in significant and negative abnormal returns over the following period (+1,+16) months, varying from -4% to -6%, and -0.20% (monthly) for the bidding firm's shareholders.
Number of Pages in PDF File: 28
Keywords: Mergers, Acquisitions, Takeovers, Tender Offers, Bidding Firms, Long-run Returns, Event study, Emerging Markets, Thailand
JEL Classification: G12, G14, G34working papers series
Date posted: August 24, 2006
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