Please use this identifier to cite or link to this item:
Title: Emerging Market Bidder Returns and the Choice of Payment Method in Mergers and Acquisitions: Evidence from India
Authors: Ladkani, Radha Mukesh
Banerjee, Ashok
Keywords: Bidder returns
Emerging markets
Mergers and acquisitions
Payment method
Promoter holdings
Issue Date: 2018
Publisher: SCOPUS
Journal of Emerging Market Finance
Sage Publications India Pvt. Ltd
Series/Report no.: 17(3)
Abstract: Consistent with other evidence on short-run effects of mergers and acquisitions (M&A) announcements on acquiring firm�s shareholder wealth in emerging markets, our study reveals that M&A deals in India, irrespective of the payment method, are not value destroying. Cash deals and stock deals create shareholder wealth on deal announcements. We offer �pseudo-cash deal hypothesis� to explain this phenomenon. We also observe that bigger the relative size of the deal, greater is the abnormal return on deal announcements. We observe that acquirers with high promoter holdings are highly reluctant to offer stock when they acquire a majority stake. However, bigger deals, deals for listed target firms, and deals in the information technology sector, command stock offers. JEL Classification: G34, G14. � 2018 Institute of Financial Management and Research.
Description: Ladkani, Radha Mukesh, Indian Institute of Management Indore, Indore, Madhya Pradesh, India; Banerjee, Ashok, Indian Institute of Management Calcutta, Kolkata, West Bengal, India
ISSN/ISBN - 09726527
DOI - 10.1177/0972652718797817
Appears in Collections:Finance and Control

Files in This Item:
There are no files associated with this item.

Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.