Mergers and Acquisitions in Maritime Industry
Transportation Research Part E: Logistics and Transportation Review 61, 2014, pp 212-234
45 Pages Posted: 21 Nov 2013 Last revised: 2 Feb 2014
Date Written: November 20, 2013
In a comprehensive study of all shipping mergers and acquisitions since 1984 we document that the shareholders of both acquirer and target realize average abnormal gains of 1.2% and 3.3% respectively and both parties gain more from diversifying than focus-increasing deals. We find that acquirers gain more when paying with stock, in cross-border deals and from public targets while larger acquirers destroy wealth. The results indicate that targets gain more from cross-border and focus-increasing deals. We study the impact of regulatory interventions on the marginal propensity to merge among shipping firms and find significant differences across regions.
Keywords: Takeovers, Mergers, Shipping, Abnormal returns, Wealth effects
JEL Classification: G34
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