Post-Takeover Effects on Thai Bidding Firms: Are Takeovers in the Bidder's Interests?-Reference-Cited by-同舟云学术

Post-Takeover Effects on Thai Bidding Firms: Are Takeovers in the Bidder's Interests?

Published:2006-12 Issue:04 Volume:09 Page:509-531
ISSN:0219-0915
Container-title:Review of Pacific Basin Financial Markets and Policies
language:en
Short-container-title:Rev. Pac. Basin Finan. Mark. Pol.

Author:

Allen D. E.¹,Soongswang A.²

Affiliation:

1. School of Accounting, Finance and Economics, Edith Cowan University, Joondalup Drive, Joondalup, Western Australia

2. School of Management, Shinawatra University, Pathumthani Campus, 99 Moo 10 Bangtoey, Samkok, Pathumthani 12160, Thailand

Abstract

This paper analyses takeover effects on the Thai stock market in terms of their impact on the bidding firms' shareholders. We apply a comprehensive analysis of shareholder wealth effects using multiple methods. Our results conform with prior studies: see Jensen and Ruback (1983), Agrawal and Jaffe (1999), Bruner (2002) and Campa and Hernando (2004). Thai takeovers result in significant negative abnormal returns over the sixteen months after the takeover. The abnormal returns, variously defined, vary from -4% to -6%, and -0.20% (monthly) for the bidding firm's shareholders. Thai takeovers do not appear to add to bidding firms' shareholder wealth.

Publisher

World Scientific Pub Co Pte Lt

Subject

Economics and Econometrics,Finance

Link

https://www.worldscientific.com/doi/pdf/10.1142/S0219091506000847

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