Post-Takeover Effects on Thai Bidding Firms

28 Pages Posted: 24 Aug 2006

See all articles by David E. Allen

David E. Allen

School of Mathematics and Statistics, The University of Sydney; Financial Research Network (FIRN); Department of Finance; School of Business and Law, Edith Cowan University

Amporn Soongswang

Sripatum University - Graduate College of Management

Abstract

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.

Keywords: Mergers, Acquisitions, Takeovers, Tender Offers, Bidding Firms, Long-run Returns, Event study, Emerging Markets, Thailand

JEL Classification: G12, G14, G34

Suggested Citation

Allen, David Edmund and Soongswang, Amporn, Post-Takeover Effects on Thai Bidding Firms. Available at SSRN: https://ssrn.com/abstract=926273 or http://dx.doi.org/10.2139/ssrn.926273

David Edmund Allen (Contact Author)

School of Mathematics and Statistics, The University of Sydney ( email )

School of Mathematics and Statistics F07
University of Sydney
Sydney, New South Wales 2006
Australia

HOME PAGE: http://www.maths.usyd.edu.au

Financial Research Network (FIRN)

C/- University of Queensland Business School
St Lucia, 4071 Brisbane
Queensland
Australia

HOME PAGE: http://www.firn.org.au

Department of Finance ( email )

Taiwan
Taiwan

School of Business and Law, Edith Cowan University

100 Joondalup Drive
Joondalup, WA 6027
Australia

HOME PAGE: http://www.dallenwapty.com

Amporn Soongswang

Sripatum University - Graduate College of Management ( email )

2410/2 Phaholyothin Rd
Jatujak
Bangkok, 10900
Thailand
(662) 579-1111 Ext. 3031 (Phone)
(662) 561-2222 Ext. 3005 (Fax)

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