Emerging Market Bidder Returns and the Choice of Payment Method in Mergers and Acquisitions: Evidence from India

被引：2
|
作者：
Ladkani, Radha M. [1 ]
Banerjee, Ashok [2 ]
机构：
[1] Indian Inst Management Indore, Indore 453556, Madhya Pradesh, India
[2] Indian Inst Management Calcutta, Kolkata, W Bengal, India
来源：
JOURNAL OF EMERGING MARKET FINANCE | 2018年 / 17卷 / 03期
关键词：
Mergers and acquisitions; payment method; bidder returns; promoter holdings; emerging markets;
D O I：
10.1177/0972652718797817
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
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.
引用
收藏
页码：386 / 411
页数：31
相关论文
共 50 条
  • [1] Market sentiment and the choice of payment method in mergers and acquisitions
    Tsai, Pei-Su
    Yen, Tze-Yu
    Ho, Chia-Cheng
    Tsai, Pei-Jung
    [J]. JOURNAL OF CORPORATE ACCOUNTING AND FINANCE, 2021, 32 (03): : 139 - 154
  • [2] The choice of payment method in European mergers and acquisitions
    Faccio, M
    Masulis, RW
    [J]. JOURNAL OF FINANCE, 2005, 60 (03): : 1345 - 1388
  • [3] Mergers and acquisitions valuation: the choice of cash as payment method
    Feito-Ruiz, Isabel
    Isabel Fernandez, Ana
    Menendez-Requejo, Susana
    [J]. SPANISH JOURNAL OF FINANCE AND ACCOUNTING-REVISTA ESPANOLA DE FINANCIACION Y CONTABILIDA, 2015, 44 (03): : 326 - 351
  • [4] Credit ratings and the choice of payment method in mergers and acquisitions
    Karampatsas, Nikolaos
    Petmezas, Dimitris
    Travlos, Nickolaos G.
    [J]. JOURNAL OF CORPORATE FINANCE, 2014, 25 : 474 - 493
  • [5] Corporate social responsibility and the choice of payment method in mergers and acquisitions
    Vo, Hong
    Nguyen, Hien T.
    V. Phan, Hieu
    [J]. INTERNATIONAL REVIEW OF FINANCIAL ANALYSIS, 2024, 94
  • [6] Acquirer Characteristics and Method of Payment: Evidence from Chinese Mergers and Acquisitions
    Boateng, Agyenim
    Bi, XiaoGang
    [J]. MANAGERIAL AND DECISION ECONOMICS, 2014, 35 (08) : 540 - 554
  • [7] Bidder returns in bancassurance mergers: Is there evidence of synergy?
    Fields, L. Paige
    Fraser, Donald R.
    Kolarl, James W.
    [J]. JOURNAL OF BANKING & FINANCE, 2007, 31 (12) : 3646 - 3662
  • [8] Acquirer's earnings quality and the choice of payment method in mergers and acquisitions
    Yung, Kenneth
    Sun, Qian
    Rahman, Hamid
    [J]. MANAGERIAL FINANCE, 2013, 39 (10) : 979 - 1000
  • [9] Determinants of the method of payment in mergers and acquisitions
    Ismail, Ahmad
    Krause, Andreas
    [J]. QUARTERLY REVIEW OF ECONOMICS AND FINANCE, 2010, 50 (04): : 471 - 484
  • [10] EARNINGS MANAGEMENT AND POST-MERGERS AND ACQUISITIONS? PERFORMANCE: EVIDENCE FROM AN EMERGING MARKET
    Fuad, A.
    Jatmiko, A.
    [J]. POLISH JOURNAL OF MANAGEMENT STUDIES, 2022, 26 (02): : 130 - 143
12345