Atul Gupta (Bently College) Bently Lalatendu Misra (University of Texas at San Antonio)
Abstract
Do relatively large mergers create more value? Do larger bid amounts represent wealth transfer or do they digmal larger expected merger gains? We hypothedize that the relationship between aggregate merger gains, dela size,and bid premiums is asymmetric across merfers made by value-enhancing versus value-reducing managers. We use a large sample of bank mergers to test these predictions and find that the value response to different explanatory variables is asymmetric. Our findings provide new insights into how theh market values merger bids.
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Publisher Info
Paper provided by College of Business, University of Texas at San Antonio in its series Working Papers with number
0004.
Find related papers by JEL classification: G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies G20 - Financial Economics - - Financial Institutions and Services - - - General G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Mortgages G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
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