The Long Term Performance of Acquiring Firms: A Re-Examination of an Anomaly

40 Pages Posted: 30 May 2007

See all articles by Shantanu Dutta

Shantanu Dutta

St. Francis Xavier University

Vijay M. Jog

Carleton University - Eric Sprott School of Business

Date Written: May 17, 2007

Abstract

In this paper, we investigate the long-term stock return performance of Canadian acquiring firms in the post event period by using 1300 M&A events between 1993-2002 period. We use both event-time and calendar-time approach and conduct robustness tests for benchmarks, methodological choices, statistical techniques and other related factors such as payment methods. We also assess the role of governance variables. Contrary to stylized facts reported in the U.S. studies, we do not find negative abnormal long-term abnormal returns for the acquirer following an acquisition event.

Keywords: Mergers and acquisitions, Market Efficiency, Long-term performance

JEL Classification: G14, G34

Suggested Citation

Dutta, Shantanu and Jog, Vijay M., The Long Term Performance of Acquiring Firms: A Re-Examination of an Anomaly (May 17, 2007). Available at SSRN: https://ssrn.com/abstract=989677 or http://dx.doi.org/10.2139/ssrn.989677

Shantanu Dutta (Contact Author)

St. Francis Xavier University ( email )

PO Box 5000
Antigonish, Nova Scotia B2G 2W5
Canada
902-8673956 (Phone)

HOME PAGE: http://www.stfx.ca

Vijay M. Jog

Carleton University - Eric Sprott School of Business ( email )

1125 Colonel By Drive
Ottawa, Ontario K1S SB6
Canada
613-520-2600 (Phone)
613-520-4427 (Fax)

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