IDEAS home Printed from https://ideas.repec.org/a/ris/jofitr/1456.html
   My bibliography  Save this article

Measuring the Economic Gains of Mergers and Acquisitions: Is it Time for a Change?

Author

Listed:
  • Antoniou, Antonios

    (FRT-C Consulting)

  • Arbour, Philippe

    (Lloyds Bank Acquisition Finance)

  • Zhao, Huainan

    (Nottingham Business School)

Abstract

In this paper we review the methods of measuring the economic gains of mergers and acquisitions (M&A). We show that the widely employed event study methodology, whether for short or long event windows, has failed to provide meaningful insight and usable lessons regarding the central question of whether mergers and acquisitions create value. We believe the right way to assess the success and therefore the desirability of M&A is through a thorough analysis of company fundamentals. This will require examining smaller samples of transactions with similar characteristics.

Suggested Citation

  • Antoniou, Antonios & Arbour, Philippe & Zhao, Huainan, 2011. "Measuring the Economic Gains of Mergers and Acquisitions: Is it Time for a Change?," Journal of Financial Transformation, Capco Institute, vol. 32, pages 159-168.
    • Handle: RePEc:ris:jofitr:1456
    as

    Download full text from publisher

    File URL: http://www.capco.com/capco-institute/capco-journal/journal-32-applied-finance/measuring-the-economic-gains-of-mergers-and
    File Function: Full text
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Li-Ming Chien & Kung-Jen Tu, 2021. "Establishing Merger Feasibility Simulation Model Based on Multiple-Criteria Decision-Making Method: Case Study of Taiwan’s Property Management Industry," Sustainability, MDPI, vol. 13(5), pages 1-16, February.
    2. Thenmozhi, M. & Narayanan, P.C., 2016. "Rule of law or country level corporate governance: What matters more in emerging market acquisitions?," Research in International Business and Finance, Elsevier, vol. 37(C), pages 448-463.

    More about this item

    Keywords

    Mergers & Acquisitions; Takeovers; Wealth Effect; Value Creation; Event Study; Fundamental Analysis;
    All these keywords.

    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:jofitr:1456. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Prof. Shahin Shojai (email available below). General contact details of provider: http://www.capco.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.