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Implications of Data Screens on Merger and Acquisition Analysis: A Large Sample Study of Mergers and Acquisitions from 1992-2009

56 Pages Posted: 21 Nov 2009 Last revised: 3 Oct 2015

Jeffry M. Netter

University of Georgia - Department of Banking and Finance; University of Georgia Law School

Mike Stegemoller

Baylor University

M. Babajide Wintoki

University of Kansas - School of Business

Multiple version iconThere are 2 versions of this paper

Date Written: November 2, 2010

Abstract

We analyze the characteristics of transactions in a comprehensive set of mergers and acquisitions based on SDC data from 1992 through 2009. We do not impose restrictions found in previous empirical work such as excluding private bidders, small targets or those deals with no target value reported. We show that the scope of mergers and acquisitions activity is much broader than implied in the mergers and acquisitions literature, which tends to oversample larger deals involving publicly traded firms. Further, some results in the large sample are different than in the extant literature. For example, the finding that mergers occur in waves is attenuated with a larger sample, due to the greater presence of smaller and/or non-public firms. Also, acquirers gain in most takeovers even though acquirer announcement returns have decreased threefold from 1992 to 2009.

Keywords: Mergers, Acquisitions, Takeovers

JEL Classification: G34

Suggested Citation

Netter, Jeffry M. and Stegemoller, Mike and Wintoki, M. Babajide, Implications of Data Screens on Merger and Acquisition Analysis: A Large Sample Study of Mergers and Acquisitions from 1992-2009 (November 2, 2010). Available at SSRN: https://ssrn.com/abstract=1510724 or http://dx.doi.org/10.2139/ssrn.1510724

Jeffry M. Netter

University of Georgia - Department of Banking and Finance ( email )

Terry College of Business
Athens, GA 30602-6253
United States
706-542-3654 (Phone)

HOME PAGE: http://www.terry.uga.edu/finance/facultyprofiles/n

University of Georgia Law School

225 Herty Drive
Athens, GA 30602
United States

Michael A. Stegemoller (Contact Author)

Baylor University ( email )

P.O. Box 98004
Waco, TX 76798-8004
United States
254-710-4145 (Phone)

Modupe Babajide Wintoki

University of Kansas - School of Business ( email )

1300 Sunnyside Avenue
Lawrence, KS 66045
United States

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