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Wealth effects to bidding companies from regulatory interventions in the UK

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  • Edward Jones
  • Jonathan Crook

Abstract

Using a sample of 186 referrals between 1965 and 2006, we analyse the abnormal returns experienced by UK bidding companies when a decision is made by UK regulators to refer a merger or acquisition for inquiry and when the decision is published by the regulator. We find evidence of disagreement between the regulator and stock valuations as to the expected outcome of the merger or acquisition.

Suggested Citation

  • Edward Jones & Jonathan Crook, 2009. "Wealth effects to bidding companies from regulatory interventions in the UK," Applied Financial Economics, Taylor & Francis Journals, vol. 19(8), pages 625-634.
    • Handle: RePEc:taf:apfiec:v:19:y:2009:i:8:p:625-634
    DOI: 10.1080/09603100802314484
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    References listed on IDEAS

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