Acquiring firm characteristics and stock market efficiency: a case study approach. (3rd August 2005)

• Record Type: Journal Article
• Authors: Lin, Lin; Piesse, Jenifer; Chou, De-Wai
• Is Part Of: International journal of services technology and management. Volume 6:Number 6(2005)
• Page Start: 576
• Page End: 598
• Publication Date: 2005-08-03
• Subjects: bankruptcy prediction -- conditional probability analysis -- takeovers -- efficient markets -- firm characteristics -- stock market efficiency -- financial characteristics -- acquisitions; Service industries -- Management -- Periodicals; Service industries -- Technological innovations -- Periodicals; 658.005
• Languages: English
• ISSNs: 1460-6720

Abstract

Previous studies have considered the market for corporate control, but have tended to assume that this is a strategy undertaken by financially robust acquiring firms. This paper provides five case studies that reflect that both acquirers and targets have differing financial characteristics. In depth examination has found that the ambiguous results in the literature are due to a lack of understanding of the complexity and diversity of takeover participants. These results indicate that while the market is efficient, there are a number of different effects of takeover that relate to the diverse nature of firms and their environment.