المستخلص: |
This paper contributes to the literature by supplying empirical evidence for the post-merger performances of the winners and losers in a sample of contested UK mergers (40 deals between 1990 and 2009). It applies a significant robustness test in the form of the matching criterion of Malmendier et al. (2012) and lays the foundation for exploring the differences between the M&A markets of the US and UK. Moreover, it adopts the misevaluation disaggregation of Rhodes–Kropf et al. (2005). The results reveal that there were no significant differences between the performances of winners and losers in the post-merger period. Moreover, by tracking these firms’ activities for the two years following completion, we found that both sets of firms prevented their stock from declining more than if they had not been involved in merger activities.
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