Abstract
Abstract This study analyzes the empirical literature concerning the influence of various factors on shareholder wealth creation in mergers and acquisitions using a multivariate framework. Overall, results indicate that while the target firm's shareholders gain significantly from mergers and acquisitions, those of the bidding firm do not. Findings also indicate that the use of stock financing has a significant impact on the wealth of both the target and bidding firms' shareholders. The presence of multiple bidders and the type of acquisition influence the bidders' return, while regulatory changes and tender offers influence the targets' returns. The paper also provides a comparison of our findings with that of previous narrative reviews and discusses their implications from the viewpoint of managers and researchers.
Keywords
ShareholderBiddingMergers and acquisitionsBusinessStock (firearms)Industrial organizationFinanceMicroeconomicsFinancial economicsAccountingEconomicsMonetary economicsMarketingCorporate governance
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Publication Info
- Year
- 1992
- Type
- article
- Volume
- 13
- Issue
- 1
- Pages
- 67-84
- Citations
- 529
- Access
- Closed
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Cite This
Deepak K. Datta,
George E. Pinches,
V. K. Narayanan
(1992).
Factors influencing wealth creation from mergers and acquisitions: A meta‐analysis.
Strategic Management Journal
, 13
(1)
, 67-84.
https://doi.org/10.1002/smj.4250130106
Identifiers
- DOI
- 10.1002/smj.4250130106