Firm size and the gains from acquisitions

@article{Moeller2004FirmSA,
  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},
  year={2004},
  volume={73},
  pages={201-228}
}
  • 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
    2,051 Citations

    Tables from this paper

    Does Size Matter ? The Impact of Managerial Incentives and Firm Size on Acquisition Announcement Returns
    • Highly Influenced
    • PDF
    Cross-Ownership, Returns and Voting in Mergers
    • 70
    Gains from Mergers and Acquisitions Around the World: New Evidence
    • 151
    • Highly Influenced
    • PDF
    Deal Size, Acquisition Premia and Shareholder Gains
    • Highly Influenced
    • PDF
    Firm size and the gains from divestitures
    • 1

    References

    SHOWING 1-10 OF 41 REFERENCES
    What do returns to acquiring firms tell us? Evidence from firms that make many acquisitions
    • 1,539
    • PDF
    Do Managerial Objectives Drive Bad Acquisitions?
    • 2,055
    • PDF
    Managerial Decision Making and Capital Structure
    • 337
    The wealth effect of merger activity and the objective functions of merging firms
    • 541
    • Highly Influential
    Takeovers of Privately Held Targets, Methods of Payment, and Bidder Returns
    • 729
    New Evidence and Perspectives on Mergers
    • 2,571
    • PDF
    Price Pressure Around Mergers
    • 334
    • PDF