Palia, Darius --- "The market for corporate control: survey of the empirical evidence, estimation issues, and potential areas for future research" [2016] ELECD 1204; in Hill, A. Claire; Davidoff Solomon, Steven (eds), "Research Handbook on Mergers and Acquisitions" (Edward Elgar Publishing, 2016) 66

Book Title: Research Handbook on Mergers and Acquisitions

Editor(s): Hill, A. Claire; Davidoff Solomon, Steven

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9781784711474

Section: Chapter 3

Section Title: The market for corporate control: survey of the empirical evidence, estimation issues, and potential areas for future research

Author(s): Palia, Darius

Number of pages: 15

Abstract/Description:

One of the more highly researched topics in the financial economics literature has been the analysis of the gains made by shareholders of companies that participate in a merger and acquisition transaction. This paper surveys the evidence for which acquirer characteristic or merger transaction type generates non-positive or positive abnormal returns for the acquirer’s shareholders. In doing so, I describe a comprehensive set of hypotheses that has been built on existing theory, which has been tested using proxies variables in a regression specification. The chapter then explains that a number of new hypotheses have yet to be examined. Finally, the paper describes outstanding empirical issues in much of the existing literature.