Evaluation of merger premium and firm performance in Europe

Nnadi, Matthias; Aghanya, Daniel

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