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Extraordinary acquirers

Author

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  • Golubov, Andrey
  • Yawson, Alfred
  • Zhang, Huizhong

Abstract

Firm fixed effects alone explain as much of the variation in acquirer returns as all the firm- and deal-specific characteristics combined. An interquartile range of acquirer fixed effects is over 6%, comparable to the interquartile range of acquirer returns. Acquirer returns persist over time, but mainly at the top end of the distribution. Persistence continues under different chief executive officers (CEOs), and attributes of the broader management team do not explain the fixed effect. Firm-specific heterogeneity in acquirer returns suggests that some organizations are extraordinary acquirers irrespective of the leadership at the top and the deal structures they choose. Implications for the M&A research are discussed.

Suggested Citation

  • Golubov, Andrey & Yawson, Alfred & Zhang, Huizhong, 2015. "Extraordinary acquirers," Journal of Financial Economics, Elsevier, vol. 116(2), pages 314-330.
    • Handle: RePEc:eee:jfinec:v:116:y:2015:i:2:p:314-330
    DOI: 10.1016/j.jfineco.2015.02.005
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    References listed on IDEAS

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    More about this item

    Keywords

    Mergers and acquisitions; Acquirer returns; Performance persistence; Fixed effects;
    All these keywords.

    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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