Effects of targets’ intangibles and acquirers’ capital intensity on announcement returns.
This paper studies how intangibles of target firms and capital intensity of acquirer firms affect merger announcement returns as measured by cumulative abnormal returns (CAR). We first focus on the established effect of different variables that past studies have shown to play a part in merger announ...
| Main Authors: | , , |
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| Other Authors: | |
| Format: | Final Year Project (FYP) |
| Language: | English |
| Published: |
2011
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| Subjects: | |
| Online Access: | http://hdl.handle.net/10356/43716 |
| _version_ | 1811694614157983744 |
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| author | Chia, Norman. Lin, Xuguang. Quek, Ngee Poo. |
| author2 | Tham Tze Minn |
| author_facet | Tham Tze Minn Chia, Norman. Lin, Xuguang. Quek, Ngee Poo. |
| author_sort | Chia, Norman. |
| collection | NTU |
| description | This paper studies how intangibles of target firms and capital intensity of acquirer firms affect merger announcement returns as measured by cumulative abnormal returns (CAR). We first focus on the established effect of different variables that past studies have shown to play a part in merger announcement returns. Holding these variables constant, we introduce various measures of intangibles and capital intensity to study their effects on merger announcement returns. Our results show that intangibles (as measured by target’s Intangibles/R&D/Amortisation as a percentage of total assets) do show a significant positive loading on merger announcement returns. As for capital intensity, two of our three variables/proxies used – Capex and PPE growth exhibit significant positive loadings on CAR. Hence, capital intensity also displays a positive loading on merger announcement returns. |
| first_indexed | 2024-10-01T07:10:22Z |
| format | Final Year Project (FYP) |
| id | ntu-10356/43716 |
| institution | Nanyang Technological University |
| language | English |
| last_indexed | 2024-10-01T07:10:22Z |
| publishDate | 2011 |
| record_format | dspace |
| spelling | ntu-10356/437162023-05-19T06:24:07Z Effects of targets’ intangibles and acquirers’ capital intensity on announcement returns. Chia, Norman. Lin, Xuguang. Quek, Ngee Poo. Tham Tze Minn Nanyang Business School DRNTU::Business::Accounting::Intangibles DRNTU::Business::Finance::Mergers and acquisitions This paper studies how intangibles of target firms and capital intensity of acquirer firms affect merger announcement returns as measured by cumulative abnormal returns (CAR). We first focus on the established effect of different variables that past studies have shown to play a part in merger announcement returns. Holding these variables constant, we introduce various measures of intangibles and capital intensity to study their effects on merger announcement returns. Our results show that intangibles (as measured by target’s Intangibles/R&D/Amortisation as a percentage of total assets) do show a significant positive loading on merger announcement returns. As for capital intensity, two of our three variables/proxies used – Capex and PPE growth exhibit significant positive loadings on CAR. Hence, capital intensity also displays a positive loading on merger announcement returns. BUSINESS 2011-04-21T01:37:13Z 2011-04-21T01:37:13Z 2011 2011 Final Year Project (FYP) http://hdl.handle.net/10356/43716 en Nanyang Technological University 36 p. application/pdf |
| spellingShingle | DRNTU::Business::Accounting::Intangibles DRNTU::Business::Finance::Mergers and acquisitions Chia, Norman. Lin, Xuguang. Quek, Ngee Poo. Effects of targets’ intangibles and acquirers’ capital intensity on announcement returns. |
| title | Effects of targets’ intangibles and acquirers’ capital intensity on announcement returns. |
| title_full | Effects of targets’ intangibles and acquirers’ capital intensity on announcement returns. |
| title_fullStr | Effects of targets’ intangibles and acquirers’ capital intensity on announcement returns. |
| title_full_unstemmed | Effects of targets’ intangibles and acquirers’ capital intensity on announcement returns. |
| title_short | Effects of targets’ intangibles and acquirers’ capital intensity on announcement returns. |
| title_sort | effects of targets intangibles and acquirers capital intensity on announcement returns |
| topic | DRNTU::Business::Accounting::Intangibles DRNTU::Business::Finance::Mergers and acquisitions |
| url | http://hdl.handle.net/10356/43716 |
| work_keys_str_mv | AT chianorman effectsoftargetsintangiblesandacquirerscapitalintensityonannouncementreturns AT linxuguang effectsoftargetsintangiblesandacquirerscapitalintensityonannouncementreturns AT quekngeepoo effectsoftargetsintangiblesandacquirerscapitalintensityonannouncementreturns |