Please use this identifier to cite or link to this item: http://bura.brunel.ac.uk/handle/2438/14361
Title: Does learning offset hubris in serial acquisitions? International Evidence
Authors: Chen, Q
Li, Shaomeng
Liu, Guy
Issue Date: 2017
Citation: European Finance Management Association, (2017)
Abstract: How do How doHow do serial mergers serial mergers serial mergers serial mergers serial mergers serial mergers serial mergers serial mergers serial mergers affect the affect the affect the affect the affect the affect the affect the Cumulative Abnormal Return (CAR)Cumulative Abnormal Return (CAR) Cumulative Abnormal Return (CAR)Cumulative Abnormal Return (CAR) Cumulative Abnormal Return (CAR) Cumulative Abnormal Return (CAR)Cumulative Abnormal Return (CAR) Cumulative Abnormal Return (CAR) Cumulative Abnormal Return (CAR)Cumulative Abnormal Return (CAR)Cumulative Abnormal Return (CAR) Cumulative Abnormal Return (CAR) Cumulative Abnormal Return (CAR) of the of the of the acquiring firmsacquiring firmsacquiring firms acquiring firmsacquiring firmsacquiring firms acquiring firms ? Although the topic is particularly popular, no Although the topic is particularly popular, no Although the topic is particularly popular, no Although the topic is particularly popular, no Although the topic is particularly popular, no Although the topic is particularly popular, no Although the topic is particularly popular, no Although the topic is particularly popular, no Although the topic is particularly popular, no Although the topic is particularly popular, no Although the topic is particularly popular, no Although the topic is particularly popular, no Although the topic is particularly popular, no Although the topic is particularly popular, no Although the topic is particularly popular, no Although the topic is particularly popular, no consensusconsensus consensusconsensus has been has been has been has been has been reached due to c reached due to creached due to creached due to creached due to creached due to c reached due to c reached due to creached due to c reached due to contradictory ontradictory ontradictory ontradictory ontradictory evidenceevidence evidenceevidence. If management hubris really can explain the If management hubris really can explain the If management hubris really can explain the If management hubris really can explain the If management hubris really can explain the If management hubris really can explain the If management hubris really can explain the If management hubris really can explain the If management hubris really can explain the If management hubris really can explain the If management hubris really can explain the If management hubris really can explain the If management hubris really can explain the If management hubris really can explain the If management hubris really can explain the If management hubris really can explain the If management hubris really can explain the If management hubris really can explain the If management hubris really can explain the If management hubris really can explain the declining CAR, declining CAR, declining CAR, declining CAR, declining CAR, declining CAR, how could how could how could this this be consistent withconsistent with consistent with consistent withconsistent with learning effect through serial learning effect through serial learning effect through serial learning effect through serial learning effect through serial learning effect through serial learning effect through serial learning effect through serial learning effect through serial learning effect through serial learning effect through serial learning effect through serial learning effect through serial learning effect through serial learning effect through serial learning effect through serial learning effect through serial acquisitions? Our results racquisitions? Our results racquisitions? Our results r acquisitions? Our results r acquisitions? Our results r acquisitions? Our results racquisitions? Our results racquisitions? Our results r acquisitions? Our results racquisitions? Our results r acquisitions? Our results r acquisitions? Our results racquisitions? Our results racquisitions? Our results reconcile the econcile the econcile the econcile the econcile the econcile the econcile the two competing explanationscompeting explanations competing explanationscompeting explanationscompeting explanationscompeting explanations competing explanations competing explanations and indicate that and indicate that and indicate that and indicate that and indicate that and indicate that both the quantitative and temporal dimensions of measure merger frequency both the quantitative and temporal dimensions of measure merger frequency both the quantitative and temporal dimensions of measure merger frequency both the quantitative and temporal dimensions of measure merger frequency both the quantitative and temporal dimensions of measure merger frequency both the quantitative and temporal dimensions of measure merger frequency both the quantitative and temporal dimensions of measure merger frequency both the quantitative and temporal dimensions of measure merger frequency both the quantitative and temporal dimensions of measure merger frequency both the quantitative and temporal dimensions of measure merger frequency both the quantitative and temporal dimensions of measure merger frequency both the quantitative and temporal dimensions of measure merger frequency both the quantitative and temporal dimensions of measure merger frequency both the quantitative and temporal dimensions of measure merger frequency both the quantitative and temporal dimensions of measure merger frequency both the quantitative and temporal dimensions of measure merger frequency both the quantitative and temporal dimensions of measure merger frequency both the quantitative and temporal dimensions of measure merger frequency both the quantitative and temporal dimensions of measure merger frequency both the quantitative and temporal dimensions of measure merger frequency both the quantitative and temporal dimensions of measure merger frequency both the quantitative and temporal dimensions of measure merger frequency both the quantitative and temporal dimensions of measure merger frequency both the quantitative and temporal dimensions of measure merger frequency both the quantitative and temporal dimensions of measure merger frequency both the quantitative and temporal dimensions of measure merger frequency both the quantitative and temporal dimensions of measure merger frequency both the quantitative and temporal dimensions of measure merger frequency both the quantitative and temporal dimensions of measure merger frequency both the quantitative and temporal dimensions of measure merger frequency both the quantitative and temporal dimensions of measure merger frequency both the quantitative and temporal dimensions of measure merger frequency both the quantitative and temporal dimensions of measure merger frequency both the quantitative and temporal dimensions of measure merger frequency need to carefully considered. need to carefully considered. need to carefully considered. need to carefully considered. need to carefully considered. need to carefully considered. need to carefully considered. need to carefully considered. need to carefully considered. need to carefully considered. need to carefully considered. With a With a With a With a With a comprehensive comprehensive comprehensive comprehensive sample of over 14,000 sample of over 14,000 sample of over 14,000 sample of over 14,000 sample of over 14,000 sample of over 14,000 sample of over 14,000 sample of over 14,000 sample of over 14,000 acquisitionsacquisitionsacquisitions acquisitions acquisitions announced and announced and announced and announced and announced and announced and completed completed completed completed internationally internationally internationally internationally internationally internationally internationally internationally from 1st January, 2000 to 31st December, 2010 from 1st January, 2000 to 31st December, 2010 from 1st January, 2000 to 31st December, 2010 from 1st January, 2000 to 31st December, 2010from 1st January, 2000 to 31st December, 2010from 1st January, 2000 to 31st December, 2010 from 1st January, 2000 to 31st December, 2010from 1st January, 2000 to 31st December, 2010from 1st January, 2000 to 31st December, 2010 from 1st January, 2000 to 31st December, 2010 from 1st January, 2000 to 31st December, 2010from 1st January, 2000 to 31st December, 2010 from 1st January, 2000 to 31st December, 2010 from 1st January, 2000 to 31st December, 2010from 1st January, 2000 to 31st December, 2010 from 1st January, 2000 to 31st December, 2010from 1st January, 2000 to 31st December, 2010from 1st January, 2000 to 31st December, 2010 from 1st January, 2000 to 31st December, 2010 from 1st January, 2000 to 31st December, 2010 , our results ur results ur results ur results ur results ur results suggest suggestsuggest that f that frequent acquisition requent acquisition requent acquisitionrequent acquisition requent acquisitionrequent acquisitionrequent acquisition requent acquisition requent acquisition s within four s within four s within four s within four -year span haveyear span haveyear span haveyear span have year span have year span haveyear span have year span have significant significantsignificant significantsignificant negative negative negative negative negative impact on the impact on the impact on the impact on the impact on the impact on the firm firm performance five days around announcement date; while with a performance five days around announcement date; while with a performance five days around announcement date; while with a performance five days around announcement date; while with a performance five days around announcement date; while with a performance five days around announcement date; while with a performance five days around announcement date; while with a performance five days around announcement date; while with a performance five days around announcement date; while with a performance five days around announcement date; while with a performance five days around announcement date; while with a performance five days around announcement date; while with a performance five days around announcement date; while with a performance five days around announcement date; while with a performance five days around announcement date; while with a performance five days around announcement date; while with a performance five days around announcement date; while with a performance five days around announcement date; while with a performance five days around announcement date; while with a performance five days around announcement date; while with a performance five days around announcement date; while with a performance five days around announcement date; while with a performance five days around announcement date; while with a performance five days around announcement date; while with a performance five days around announcement date; while with a measure as the cum measure as the cum measure as the cummeasure as the cummeasure as the cum measure as the cum measure as the cummeasure as the cum ulative number of the acquisitions across ulative number of the acquisitions across theulative number of the acquisitions across theulative number of the acquisitions across ulative number of the acquisitions across theulative number of the acquisitions across ulative number of the acquisitions across theulative number of the acquisitions across ulative number of the acquisitions across theulative number of the acquisitions across theulative number of the acquisitions across ulative number of the acquisitions across ulative number of the acquisitions across ulative number of the acquisitions across theulative number of the acquisitions across theulative number of the acquisitions across ulative number of the acquisitions across whole sample period, whole sample period, whole sample period, whole sample period, whole sample period, whole sample period, whole sample period, the impact the impact the impact the impactthe impact is insignificant. is insignificant. is insignificant. is insignificant. is insignificant. is insignificant. is insignificant. The results support the management hubris explanation to The results support the management hubris explanation to The results support the management hubris explanation to The results support the management hubris explanation to The results support the management hubris explanation to The results support the management hubris explanation to The results support the management hubris explanation to The results support the management hubris explanation to The results support the management hubris explanation to The results support the management hubris explanation to The results support the management hubris explanation to The results support the management hubris explanation to The results support the management hubris explanation to The results support the management hubris explanation to The results support the management hubris explanation to The results support the management hubris explanation to The results support the management hubris explanation to The results support the management hubris explanation to The results support the management hubris explanation to The results support the management hubris explanation to The results support the management hubris explanation to The results support the management hubris explanation to the negative the negative the negativethe negativethe negative the negative CARCAR . However our results . However our results . However our results . However our results . However our results . However our results . However our results . However our results . However our results . However our results . However our results also indicate that it takes time for the also indicate that it takes time for the also indicate that it takes time for the also indicate that it takes time for the also indicate that it takes time for the also indicate that it takes time for the also indicate that it takes time for the also indicate that it takes time for the also indicate that it takes time for the also indicate that it takes time for the also indicate that it takes time for the also indicate that it takes time for the also indicate that it takes time for the also indicate that it takes time for the also indicate that it takes time for the also indicate that it takes time for the also indicate that it takes time for the acquiringacquiringacquiring acquiring firms to digest and firms to digest and firms to digest and firms to digest and firms to digest andfirms to digest and firms to digest andfirms to digest and learn from the past experience, learn from the past experience, learn from the past experience, learn from the past experience, learn from the past experience, learn from the past experience, learn from the past experience, learn from the past experience, learn from the past experience, learn from the past experience, learn from the past experience, learn from the past experience, learn from the past experience, learn from the past experience, the benefit of the benefit of the benefit of the benefit of the benefit of the benefit of the benefit of the learning effect will offset the negative impact caused by management hubris learning effect will offset the negative impact caused by management hubris learning effect will offset the negative impact caused by management hubrislearning effect will offset the negative impact caused by management hubrislearning effect will offset the negative impact caused by management hubrislearning effect will offset the negative impact caused by management hubrislearning effect will offset the negative impact caused by management hubris learning effect will offset the negative impact caused by management hubrislearning effect will offset the negative impact caused by management hubris learning effect will offset the negative impact caused by management hubris learning effect will offset the negative impact caused by management hubrislearning effect will offset the negative impact caused by management hubris learning effect will offset the negative impact caused by management hubris learning effect will offset the negative impact caused by management hubrislearning effect will offset the negative impact caused by management hubrislearning effect will offset the negative impact caused by management hubris learning effect will offset the negative impact caused by management hubris learning effect will offset the negative impact caused by management hubrislearning effect will offset the negative impact caused by management hubrislearning effect will offset the negative impact caused by management hubris learning effect will offset the negative impact caused by management hubris learning effect will offset the negative impact caused by management hubrislearning effect will offset the negative impact caused by management hubris learning effect will offset the negative impact caused by management hubris learning effect will offset the negative impact caused by management hubrislearning effect will offset the negative impact caused by management hubris learning effect will offset the negative impact caused by management hubrislearning effect will offset the negative impact caused by management hubrislearning effect will offset the negative impact caused by management hubris learning effect will offset the negative impact caused by management hubrislearning effect will offset the negative impact caused by management hubris learning effect will offset the negative impact caused by management hubrislearning effect will offset the negative impact caused by management hubrislearning effect will offset the negative impact caused by management hubrislearning effect will offset the negative impact caused by management hubris learning effect will offset the negative impact caused by management hubrislearning effect will offset the negative impact caused by management hubrislearning effect will offset the negative impact caused by management hubris learning effect will offset the negative impact caused by management hubris learning effect will offset the negative impact caused by management hubris learning effect will offset the negative impact caused by management hubris in the in the long run long run long run . Our analysis is Our analysis isOur analysis isOur analysis is Our analysis isOur analysis isOur analysis is Our analysis isOur analysis is robust to that of the to that of the to that of the to that of the to that of the subsamples of OECD countries, developed subsamples of OECD countries, developed subsamples of OECD countries, developed subsamples of OECD countries, developed subsamples of OECD countries, developed subsamples of OECD countries, developed subsamples of OECD countries, developed subsamples of OECD countries, developed subsamples of OECD countries, developed subsamples of OECD countries, developed subsamples of OECD countries, developed subsamples of OECD countries, developed subsamples of OECD countries, developed subsamples of OECD countries, developed countricountri es , US companies and EU countries, US companies and EU countries, US companies and EU countries, US companies and EU countries, US companies and EU countries, US companies and EU countries, US companies and EU countries, US companies and EU countries, US companies and EU countries, US companies and EU countries, US companies and EU countries, indicating that indicating that indicating that indicating that indicating that indicating that indicating that frequent acquisition within a relatively short to medium interval is perceived negatively by the market regardless of the differences in culture, anti-trust law, investor protection, competition of the mergers and acquisition markets.
URI: http://bura.brunel.ac.uk/handle/2438/14361
Appears in Collections:Dept of Economics and Finance Research Papers

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