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Value Creation from M&As: New Evidence

Alexandridis, G, Antypas, N and Travlos, Nikolaos (2017) Value Creation from M&As: New Evidence Journal of Corporate Finance, 45. pp. 632-650.

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M&A deals create more value for acquiring firm shareholders post-2009 than ever before. Public acquisitions fuel positive and statistically significant abnormal returns for acquirers while stock-for-stock deals no longer destroy value. Mega deals, priced at least $500mil, typically associated with more pronounced agency problems, investor scrutiny and media attention, seem to be driving the documented upturn. Acquiring shareholders now gain $62 mil around the announcement of such deals; a $325 mil gain improvement compared to 1990-2009. The corresponding synergistic gains have also catapulted to more than $542 mil pointing to overall value creation from M&As on a large scale. Our results are robust to different measures and controls and appear to be linked with profound improvements in the quality of corporate governance among acquiring firms in the aftermath of the 2009 financial crisis.

Item Type: Article
Divisions : Faculty of Arts and Social Sciences > Surrey Business School
Authors :
Alexandridis, G
Antypas, N
Date : 29 May 2017
Identification Number : 10.1016/j.jcorpfin.2017.05.010
Copyright Disclaimer : © 2017. This manuscript version is made available under the CC-BY-NC-ND 4.0 license
Uncontrolled Keywords : Mergers and Acquisitions, Acquirer Returns, Mega-Deals, Synergy Gains, Value Creation, Financial Crisis
Depositing User : Melanie Hughes
Date Deposited : 31 May 2017 14:48
Last Modified : 28 Sep 2017 11:04

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