Beyond the target: M&A decisions and rival ownership

• 成果类型: Article
• 署名作者: Anton, Miguel; Azar, Jose; Gine, Mireia; Lin, Luca X.
• 署名单位: University of Navarra; IESE Business School; University of Navarra; IESE Business School; University of Navarra; Universite de Montreal; HEC Montreal
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2022.01.002
• 发表日期: 2022
• 页码: 44-66
• 关键词: ownership; Mergers and Acquisitions; institutional investors

摘要

Diversified acquirer shareholders can profit from value-destroying acquisitions not only through their target stakes, but also through stakes in non-merging rival firms. Announcement losses are largely mitigated for the average acquirer shareholder when accounting for wealth effects on their rival stakes. Ownership by acquirer shareholders in non-merging rivals is negatively associated with deal quality and positively associated with deal completion. Funds with more rival ownership are more likely to vote in favor of the acquisition. Overall, these results show that many so-called bad deals are often in the interest of acquirer-firm shareholders. (c) 2022 Elsevier B.V. All rights reserved.