Firm size and the gains from acquisitions

  title={Firm size and the gains from acquisitions},
  author={S. Moeller and Frederik P. Schlingemann and Ren{\'e} M. Stulz},
  journal={Journal of Financial Economics},
  • S. Moeller, Frederik P. Schlingemann, René M. Stulz
  • Published 2004
  • Business
  • Journal of Financial Economics
  • Abstract We examine a sample of 12,023 acquisitions by public firms from 1980 to 2001. The equally weighted abnormal announcement return is 1.1%, but acquiring-firm shareholders lose $25.2 million on average upon announcement. This disparity suggests the existence of a size effect in acquisition announcement returns. The announcement return for acquiring-firm shareholders is roughly two percentage points higher for small acquirers irrespective of the form of financing and whether the acquired… CONTINUE READING
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