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Claremont Graduate University

Merger Announcement Returns with Preparations

Abstract

dc:description.abstract

<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>

Degree

thesis:*
Name thesis:degree_name
Economics, PhD
Level thesis:degree_level
Open Access Dissertation
Discipline thesis:degree_discipline
School of Politics and Economics
Year dc:date.available
2012

Author and committee

dc:creator, dc:contributor.*
Author dc:creator
  • Lee, Sang-Hyun
Contributors dc:contributor
  • Thomas Borcherding
  • Stephen V. Marks

Subjects

dc:subject × 4

Identifiers

dc:identifier.*
Repository record dc:identifier
https://scholarship.claremont.edu/cgu_etd/65
OAI identifier oai:identifier
oai:scholarship.claremont.edu:cgu_etd-1067

Chain of custody

source
Harvested from
Claremont Graduate University
Base URL
scholarship.claremont.edu/do/oai/
Last updated
2026-07-24
Source record
OAI-PMH GetRecord
citation

Lee, Sang-Hyun. Merger Announcement Returns with Preparations. Open Access Dissertation thesis, 2012. https://scholarship.claremont.edu/cgu_etd/65