Evaluation of merger premium and firm performance in Europe

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dc.contributor.author Nnadi, Matthias
dc.contributor.author Aghanya, Daniel
dc.date.accessioned 2018-05-14T12:56:36Z
dc.date.available 2018-05-14T12:56:36Z
dc.date.issued 2015-06-30
dc.identifier.citation Matthias Nnadi and Daniel Aghanya. Evaluation of merger premium and firm performance in Europe. International Journal of Banking, Accounting and Finance, 2018, Volume 9, Issue 2, pp119-140 en_UK
dc.identifier.issn 1756-5154
dc.identifier.uri http://dspace.lib.cranfield.ac.uk/handle/1826/13201
dc.identifier.uri http://dx.doi.org/10.1504/IJBAAF.2018.092131
dc.description.abstract This paper investigates whether the deal premium affects the performance of the acquiring firms in European mergers and acquisitions (M&As) deals for the period 2000-2013. We find a significant reduction in short-term performance of the acquiring firms after the M&As, reflecting the overpayment hypothesis. Our result also indicates that the negative effect on the performance of the acquiring firms is less pronounced in the long-term. The result confirms the synergy hypothesis and the existence of quadratic relationship between high premium and performance. Our findings are robust as we control for firm and time trends. The findings of our study have implications for companies engaging in acquisitions in Europe. en_UK
dc.language.iso en en_UK
dc.publisher World Academy of Science, Engineering and Technology en_UK
dc.rights Attribution-NonCommercial 4.0 International
dc.rights.uri http://creativecommons.org/licenses/by-nc/4.0/
dc.subject mergers en_UK
dc.subject premiums en_UK
dc.subject performance en_UK
dc.subject acquisition en_UK
dc.subject Europe en_UK
dc.subject returns en_UK
dc.title Evaluation of merger premium and firm performance in Europe en_UK
dc.type Article en_UK

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