title   
  

Measuring deal premiums in takeovers

Mulherin, Harold and Şimşir, Şerif Aziz (2014) Measuring deal premiums in takeovers. (Accepted/In Press)

[img]
Preview
PDF (This is a RoMEO yellow journal -- author can archive pre-print (ie pre-refereeing)) - Requires a PDF viewer such as GSview, Xpdf or Adobe Acrobat Reader
367Kb

Abstract

We investigate whether the merger announcement dates provided in the Securities Data Corporation (SDC) database are handled correctly by researchers performing event studies. We find that in 24.1% of deals, the popular choice of using the SDC’s “Date Announced” (DA) field as the event date leads to biased estimates of target firm abnormal returns because of earlier abnormal price movements due to merger-related events such as merger rumors or search-for-buyer types of announcements. We hand collect the merger-related events from news sources and make the complete dataset publicly available at the Financial Management website.

Item Type:Article
Uncontrolled Keywords:Mergers and Acquisitions, Event Study, Cumulative Abnormal Returns, Offer Premiums, Merger Rumors, Strategic Alternatives
Subjects:H Social Sciences > HG Finance > HG4001-4285 Financial management. Business finance. Corporation finance
ID Code:24964
Deposited By:Şerif Aziz Şimşir
Deposited On:09 Dec 2014 22:08
Last Modified:09 Dec 2014 22:08

Repository Staff Only: item control page