The Dynamics within Merger Waves - Evidence from Industry Merger Waves of the 1990s

38 Pages Posted: 21 Feb 2005

See all articles by Volker Floegel

Volker Floegel

Union PanAgora Asset Management

Lutz Johanning

WHU - Otto Beisheim School of Management

Timo Gebken

Source For Alpha AG

Date Written: January 22, 2005

Abstract

The objective of this study is to investigate the dynamics within merger waves. For a sample of 1025 bids that occur in 18 industry merger waves, we measure how the returns to bidders and rivals change, as a wave is ongoing. In the first half of a wave, bidders (rivals) experience an average abnormal return of 1.5562% (0.3124%), however at late wave stages the return decreases to -1.1079% (-0.1244%). This wave effect is robust across subsamples of bids and holds in regressions that use different variables to capture the effect and control for bidder and deal characteristics.

Keywords: Mergers & acquisitions, bidder, merger waves, rival returns

JEL Classification: G34

Suggested Citation

Floegel, Volker and Johanning, Lutz and Gebken, Timo, The Dynamics within Merger Waves - Evidence from Industry Merger Waves of the 1990s (January 22, 2005). Available at SSRN: https://ssrn.com/abstract=669525 or http://dx.doi.org/10.2139/ssrn.669525

Volker Floegel

Union PanAgora Asset Management ( email )

Westhafen Tower
Westhafenplatz 1
Frankfurt, 60327
Germany

Lutz Johanning

WHU - Otto Beisheim School of Management ( email )

Burgplatz 2
Vallendar, 56179
Germany
+49 261 6509 720 (Phone)

Timo Gebken (Contact Author)

Source For Alpha AG ( email )

Hinterlauben 4
St. Gallen, 9000
Switzerland

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
781
Abstract Views
2,662
rank
33,279
PlumX Metrics