This paper analyzes the relationship between the merger announcement returns and the bidding firms' preparations for mergers. In this study, merger preparations are defined as bidding firms' adaptive actions of changing their executives prior to mergers. An analysis of the relative effectiveness of merger preparations is conducted through event study for univariate tests. In addition, a regression for multivariate tests analyzes incentives for making merger preparations. The results of these studies indicate that (1) hiring of new executives from outside the target proves to be the most effective merger preparation, (2) firms who make merger preparations have higher returns, and (3) hiring of new executives from the targets proves to have negative effects on bidding firms' returns, though this can vary based on the relative size of the target.
","abstract_html":"<p>This paper analyzes the relationship between the merger announcement returns and the bidding firms' preparations for mergers. In this study, merger preparations are defined as bidding firms' adaptive actions of changing their executives prior to mergers. An analysis of the relative effectiveness of merger preparations is conducted through event study for univariate tests. In addition, a regression for multivariate tests analyzes incentives for making merger preparations. The results of these studies indicate that (1) hiring of new executives from outside the target proves to be the most effective merger preparation, (2) firms who make merger preparations have higher returns, and (3) hiring of new executives from the targets proves to have negative effects on bidding firms' returns, though this can vary based on the relative size of the target.</p>","abstract_has_math":false,"creators":["Lee, Sang-Hyun"],"institution":null,"degree_name":"Economics, PhD","degree_level":"Open Access Dissertation","degree_discipline":"School of Politics and Economics","degree_department":null,"school":null,"contributors":["Thomas Borcherding","Stephen V. Marks"],"advisors":[],"committee_chairs":[],"committee_members":[],"year":2012,"date_issued":"2012-01-01T08:00:00Z","date_published":"2012-01-01T08:00:00Z","updated_at":"2026-07-24T01:39:44Z","subjects":["Merger","Merger Announcement Returns","Merger Preparation","Economics"],"languages":[],"rights":[],"rights_urls":[],"identifier_entries":[]},"links":{"outbound_url":"https://scholarship.claremont.edu/cgu_etd/65","outbound_label":"Repository record","outbound_source":"dc:identifier"},"metadata_groups":[{"id":"people","label":"People","entries":[{"key":"dc:contributor","label":"Contributor","values":["Thomas Borcherding","Stephen V. Marks"]},{"key":"dc:creator","label":"Author","values":["Lee, Sang-Hyun"]}]},{"id":"academic_context","label":"Academic Context","entries":[{"key":"dc:date.available","label":"Dc Date Available","values":["2012-07-30T07:00:00Z"]},{"key":"thesis:degree_discipline","label":"Discipline","values":["School of Politics and Economics"]},{"key":"thesis:degree_level","label":"Degree Level","values":["Open Access Dissertation"]},{"key":"thesis:degree_name","label":"Degree Name","values":["Economics, PhD"]}]},{"id":"subjects_keywords","label":"Subjects and Keywords","entries":[{"key":"dc:subject","label":"Dc Subject","values":["Merger","Merger Announcement Returns","Merger Preparation","Economics"]}]},{"id":"identifiers","label":"Identifiers","entries":[{"key":"dc:identifier","label":"Identifier","values":["https://scholarship.claremont.edu/cgu_etd/65"]}]},{"id":"additional","label":"Additional Metadata","entries":[{"key":"dc:description.abstract","label":"Abstract","values":["This paper analyzes the relationship between the merger announcement returns and the bidding firms' preparations for mergers. In this study, merger preparations are defined as bidding firms' adaptive actions of changing their executives prior to mergers. An analysis of the relative effectiveness of merger preparations is conducted through event study for univariate tests. In addition, a regression for multivariate tests analyzes incentives for making merger preparations. The results of these studies indicate that (1) hiring of new executives from outside the target proves to be the most effective merger preparation, (2) firms who make merger preparations have higher returns, and (3) hiring of new executives from the targets proves to have negative effects on bidding firms' returns, though this can vary based on the relative size of the target.
"]},{"key":"dc:title","label":"Title","values":["Merger Announcement Returns with Preparations"]}]}],"canonical_facts":{"dc:contributor":["Thomas Borcherding","Stephen V. Marks"],"dc:creator":["Lee, Sang-Hyun"],"dc:date.available":["2012-07-30T07:00:00Z"],"dc:description.abstract":["This paper analyzes the relationship between the merger announcement returns and the bidding firms' preparations for mergers. In this study, merger preparations are defined as bidding firms' adaptive actions of changing their executives prior to mergers. An analysis of the relative effectiveness of merger preparations is conducted through event study for univariate tests. In addition, a regression for multivariate tests analyzes incentives for making merger preparations. The results of these studies indicate that (1) hiring of new executives from outside the target proves to be the most effective merger preparation, (2) firms who make merger preparations have higher returns, and (3) hiring of new executives from the targets proves to have negative effects on bidding firms' returns, though this can vary based on the relative size of the target.
"],"dc:identifier":["https://scholarship.claremont.edu/cgu_etd/65"],"dc:subject":["Merger","Merger Announcement Returns","Merger Preparation","Economics"],"dc:title":["Merger Announcement Returns with Preparations"],"thesis:degree_discipline":["School of Politics and Economics"],"thesis:degree_level":["Open Access Dissertation"],"thesis:degree_name":["Economics, PhD"]},"updated_at":"2026-07-24T01:39:44Z"}