Corpus ID: 54842631

The effects of litigation on mergers and acquisitions

  title={The effects of litigation on mergers and acquisitions},
  author={Kun Zhao},
  • Kun Zhao
  • Published 2016
  • Business
  • This paper investigates whether litigation impacts merger and acquisition outcomes for defendant firms. Our results indicate that being a defendant of a single lawsuit within the last two years appears to significantly increase the premium paid to this firm when it becomes the target of a takeover attempt, while incurring multiple lawsuits over this time frame decreases the premium (albeit not significantly so). Litigation is also correlated with takeover announcements, as incurring lawsuits… CONTINUE READING

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