The (Missing) Relation between Acquisition Announcement Returns and Value Creation

• 成果类型: Article
• 署名作者: Ben-David, Itzhak; Bhattacharya, Utpal; Huang, Ruidi; Jacobsen, Stacey
• 署名单位: University System of Ohio; Ohio State University; National Bureau of Economic Research; Hong Kong University of Science & Technology; Southern Methodist University
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082; 1540-6261
• DOI: 10.1111/jofi.70038
• 发表日期: 2026-06
• 页码: 1265-1320
• 关键词: CORPORATE ACQUISITIONS; MERGER ACTIVITY; BIDDING FIRMS; performance; price; takeovers; INFORMATION; MARKET; valuation; exchange

摘要

Cumulative abnormal returns (CARs) computed around acquisition announcements are widely considered to be market-based assessments of expected value creation. We show, however, that announcement returns do not correlate with commonly used and new measures of ex post outcomes. A simple characteristics-based model using standard information known at the announcement date can predict these outcomes reasonably well, yet CAR even fails to capture the predictions from this model. Evidence suggests that information about the stand-alone acquirer dominates CAR, making it virtually impossible to extract deal-related information. We conclude that CAR is an unreliable measure of expected value creation.