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Takeovers after "Takeovers"

  • Andy Cosh
  • Alan Hughes
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    We review five decades of takeover actively in the UK. We assess the relative characteristics of acquiring and acquired companies and the performance impacts of merger using both accounting and share price based measures. We conclude that the fundamental conclusions reached by Ajit Singh about takeovers and the market for corporate control in his seminal contributions of the 1970s remain true in the light of subsequent work.

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    File URL: http://www.cbr.cam.ac.uk/pdf/WP363.pdf
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    Paper provided by ESRC Centre for Business Research in its series ESRC Centre for Business Research - Working Papers with number wp363.

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    Date of creation: Jun 2008
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    Handle: RePEc:cbr:cbrwps:wp363
    Note: PRO-2
    Contact details of provider: Web page: http://www.cbr.cam.ac.uk/

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    1. Gregory, Alan & McCorriston, Steve, 2005. "Foreign acquisitions by UK limited companies: short- and long-run performance," Journal of Empirical Finance, Elsevier, vol. 12(1), pages 99-125, January.
    2. Pickering, J F, 1983. "The Causes and Consequences of Abandoned Mergers," Journal of Industrial Economics, Wiley Blackwell, vol. 31(3), pages 267-81, March.
    3. Firth, Michael, 1979. "The Profitability of Takeovers and Mergers," Economic Journal, Royal Economic Society, vol. 89(354), pages 316-28, June.
    4. Colin Mayer & Julian Franks, 2001. "Who Disciplines Management in Poorly Performing Companies?," Economics Series Working Papers 1999-FE-01, University of Oxford, Department of Economics.
    5. Thompson, Steve, 1997. "Takeover activity among financial mutuals: An analysis of target characteristics," Journal of Banking & Finance, Elsevier, vol. 21(1), pages 37-53, January.
    6. Andy Cosh & Paul Guest & Alan Hughes, 2007. "UK Corporate Governance and Takeover Performance," ESRC Centre for Business Research - Working Papers wp357, ESRC Centre for Business Research.
    7. Andrew P. Dickerson & Heather D. Gibson & Euclid Tsakalotos, 1998. "Takeover Risk and the Market for Corporate Control: The Experience of British Firms in the 1970s and 1980s," Studies in Economics 9803, School of Economics, University of Kent.
    8. Franks, Julian & Mayer, Colin, 1996. "Hostile takeovers and the correction of managerial failure," Journal of Financial Economics, Elsevier, vol. 40(1), pages 163-181, January.
    9. Barnes, Paul, 1999. " Predicting UK Takeover Targets: Some Methodological Issues and an Empirical Study," Review of Quantitative Finance and Accounting, Springer, vol. 12(3), pages 283-301, May.
    10. George Alexandridis & Antonios Antoniou & Huainan Zhao, 2006. "Valuation Effects of Short Sale Constraints: the Case of Corporate Takeovers," European Financial Management, European Financial Management Association, vol. 12(5), pages 747-762.
    11. Utton, M A, 1974. "On Measuring the Effects of Industrial Mergers," Scottish Journal of Political Economy, Scottish Economic Society, vol. 21(1), pages 13-28, February.
    12. Robert L. Conn & Andy Cosh & Paul M. Guest & Alan Hughes, 2005. "The Impact on UK Acquirers of Domestic, Cross-border, Public and Private Acquisitions," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 32(5-6), pages 815-870.
    13. Franks, J R & Broyles, J E & Hecht, M J, 1977. "An Industry Study of the Profitability of Mergers in the United Kingdom," Journal of Finance, American Finance Association, vol. 32(5), pages 1513-25, December.
    14. Firth, Michael, 1980. "Takeovers, Shareholder Returns, and the Theory of the Firm," The Quarterly Journal of Economics, MIT Press, vol. 94(2), pages 235-60, March.
    15. Roll, Richard, 1986. "The Hubris Hypothesis of Corporate Takeovers," The Journal of Business, University of Chicago Press, vol. 59(2), pages 197-216, April.
    16. Andrew P. Dickerson & Heather D. Gibson & Euclid Tsakalotos, 1999. "Is Attack the Best form of Defence? A Competing Risks Analysis of Acquisition Activity in the UK," Studies in Economics 9907, School of Economics, University of Kent.
    17. Dickerson, Andrew P & Gibson, Heather D & Tsakalotos, Euclid, 1998. "Takeover Risk and Dividend Strategy: A Study of UK Firms," Journal of Industrial Economics, Wiley Blackwell, vol. 46(3), pages 281-300, September.
    18. Singh, Ajit, 1975. "Take-Overs, Economic Natural Selection, and the Theory of the Firm: Evidence from the Postwar United Kingdom Experience," Economic Journal, Royal Economic Society, vol. 85(339), pages 497-515, September.
    19. Ronan G. Powell, 1997. "Modelling Takeover Likelihood," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 24(7&8), pages 1009-1030.
    20. Levine, Paul & Aaronovitch, Sam, 1981. "The Financial Characteristics of Firms and Theories of Merger Activity," Journal of Industrial Economics, Wiley Blackwell, vol. 30(2), pages 149-72, December.
    21. Henry G. Manne, 1965. "Mergers and the Market for Corporate Control," Journal of Political Economy, University of Chicago Press, vol. 73, pages 351.
    22. Sudi Sudarsanam & Ashraf A. Mahate -super-*, 2003. "Glamour Acquirers, Method of Payment and Post-acquisition Performance: The UK Evidence," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 30(1-2), pages 299-342.
    23. M. S. B. Aw & R. A. Chatterjee, 2004. "The performance of UK firms acquiring large cross-border and domestic takeover targets," Applied Financial Economics, Taylor & Francis Journals, vol. 14(5), pages 337-349.
    24. Nuttal, R., 1999. "Takeover Likelihood Models for UK Quoted Companies," Economics Papers 1999-w6, Economics Group, Nuffield College, University of Oxford.
    25. Henry G. Manne, 1965. "Mergers and the Market for Corporate Control," Journal of Political Economy, University of Chicago Press, vol. 73, pages 110.
    26. Antonios Antoniou & Dimitris Petmezas & Huainan Zhao, 2007. "Bidder Gains and Losses of Firms Involved in Many Acquisitions," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 34(7-8), pages 1221-1244.
    27. Cosh, A. D. & Hughes, A. & Lee, K. & Singh, A., 1989. "Institutional investment, mergers and the market for corporate control," International Journal of Industrial Organization, Elsevier, vol. 7(1), pages 73-100, March.
    28. A Cosh & P Guest, 2001. "The Long-Run Performance of Hostile Takeovers: UK Evidence," ESRC Centre for Business Research - Working Papers wp215, ESRC Centre for Business Research.
    29. Dickerson, Andrew P & Gibson, Heather D & Tsakalotos, Euclid, 1997. "The Impact of Acquisitions on Company Performance: Evidence from a Large Panel of UK Firms," Oxford Economic Papers, Oxford University Press, vol. 49(3), pages 344-61, July.
    30. Higson, Chris & Elliott, Jamie, 1998. "Post-takeover returns: The UK evidence," Journal of Empirical Finance, Elsevier, vol. 5(1), pages 27-46, January.
    31. Andy Cosh & Paul M. Guest & Alan Hughes, 2006. "Board Share-Ownership and Takeover Performance," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 33(3-4), pages 459-510.
    32. Firth, Michael, 1978. "Synergism in Mergers: Some British Results," Journal of Finance, American Finance Association, vol. 33(2), pages 670-72, May.
    33. Powell, Ronan G. & Stark, Andrew W., 2005. "Does operating performance increase post-takeover for UK takeovers? A comparison of performance measures and benchmarks," Journal of Corporate Finance, Elsevier, vol. 11(1-2), pages 293-317, March.
    34. Terence Tse & Khaled Soufani, 2001. "Wealth Effects of Takeovers in Merger Activity Eras: Empirical Evidence from the UK," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 8(3), pages 365-377.
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