The Impact of the Preliminary Announcement on the Abnormal Returns of the Companies Involved in Takeover Bids in the Portuguese Stock Market between 2000 and 2014
<p>The comprehension of terms such as Takeover Bids is essential to understand the functioning of business combinations. This paper aims to analyze the impact of the preliminary announcement on the abnormal returns of the companies involved in takeover bids in the Portuguese stock market. This...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Nicolaus Copernicus University in Toruń
2016-08-01
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| Series: | Copernican Journal of Finance & Accounting |
| Subjects: | |
| Online Access: | https://apcz.umk.pl/czasopisma/index.php/CJFA/article/view/10416 |
| _version_ | 1827853472833208320 |
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| author | João Paulo Braga Luís M. Pereira Gomes |
| author_facet | João Paulo Braga Luís M. Pereira Gomes |
| author_sort | João Paulo Braga |
| collection | DOAJ |
| description | <p>The comprehension of terms such as Takeover Bids is essential to understand the functioning of business combinations. This paper aims to analyze the impact of the preliminary announcement on the abnormal returns of the companies involved in takeover bids in the Portuguese stock market. This study used the methodologies of Ball and Brown (1968) and Beaver (1968). 100 Operations were identified between 2000 and 2014. The results of the 12 analyzed bids confirm that the target companies show positive abnormal returns, whilst the acquiring companies show negative abnormal returns and inferior in amplitude. They also confirm that, globally, the companies react strongly to the announcement and that they acquire higher abnormal earnings in the periods closest to the preliminary announcement.</p> |
| first_indexed | 2024-03-12T11:06:09Z |
| format | Article |
| id | doaj.art-144dff292a684c85af365b2489b8f9fc |
| institution | Directory Open Access Journal |
| issn | 2300-1240 2300-3065 |
| language | English |
| last_indexed | 2024-03-12T11:06:09Z |
| publishDate | 2016-08-01 |
| publisher | Nicolaus Copernicus University in Toruń |
| record_format | Article |
| series | Copernican Journal of Finance & Accounting |
| spelling | doaj.art-144dff292a684c85af365b2489b8f9fc2023-09-02T03:48:27ZengNicolaus Copernicus University in ToruńCopernican Journal of Finance & Accounting2300-12402300-30652016-08-0151396510.12775/CJFA.2016.0039221The Impact of the Preliminary Announcement on the Abnormal Returns of the Companies Involved in Takeover Bids in the Portuguese Stock Market between 2000 and 2014João Paulo Braga0Luís M. Pereira Gomes1ISCAP – Instituto Superior de Contabilidade e Administração do PortoISCAP – Instituto Superior de Contabilidade e Administração do Porto<p>The comprehension of terms such as Takeover Bids is essential to understand the functioning of business combinations. This paper aims to analyze the impact of the preliminary announcement on the abnormal returns of the companies involved in takeover bids in the Portuguese stock market. This study used the methodologies of Ball and Brown (1968) and Beaver (1968). 100 Operations were identified between 2000 and 2014. The results of the 12 analyzed bids confirm that the target companies show positive abnormal returns, whilst the acquiring companies show negative abnormal returns and inferior in amplitude. They also confirm that, globally, the companies react strongly to the announcement and that they acquire higher abnormal earnings in the periods closest to the preliminary announcement.</p>https://apcz.umk.pl/czasopisma/index.php/CJFA/article/view/10416takeover bidabnormal returnshostile takeoverprice reactionbid premium |
| spellingShingle | João Paulo Braga Luís M. Pereira Gomes The Impact of the Preliminary Announcement on the Abnormal Returns of the Companies Involved in Takeover Bids in the Portuguese Stock Market between 2000 and 2014 Copernican Journal of Finance & Accounting takeover bid abnormal returns hostile takeover price reaction bid premium |
| title | The Impact of the Preliminary Announcement on the Abnormal Returns of the Companies Involved in Takeover Bids in the Portuguese Stock Market between 2000 and 2014 |
| title_full | The Impact of the Preliminary Announcement on the Abnormal Returns of the Companies Involved in Takeover Bids in the Portuguese Stock Market between 2000 and 2014 |
| title_fullStr | The Impact of the Preliminary Announcement on the Abnormal Returns of the Companies Involved in Takeover Bids in the Portuguese Stock Market between 2000 and 2014 |
| title_full_unstemmed | The Impact of the Preliminary Announcement on the Abnormal Returns of the Companies Involved in Takeover Bids in the Portuguese Stock Market between 2000 and 2014 |
| title_short | The Impact of the Preliminary Announcement on the Abnormal Returns of the Companies Involved in Takeover Bids in the Portuguese Stock Market between 2000 and 2014 |
| title_sort | impact of the preliminary announcement on the abnormal returns of the companies involved in takeover bids in the portuguese stock market between 2000 and 2014 |
| topic | takeover bid abnormal returns hostile takeover price reaction bid premium |
| url | https://apcz.umk.pl/czasopisma/index.php/CJFA/article/view/10416 |
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