Asset vs. equity acquisitions by financial institutions
Asset vs. equity acquisitions by financial institutions
We examine the impact of asset vs. equity acquisitions in generating firm value for financial institutions. We find that acquirers experience statistically and economically significant higher CARs in asset acquisitions compared to equity acquisitions. We analyze the announcement period returns and find that investors' reaction to asset acquisitions by financial institutions is met more favorably than equity acquisitions. When employing the differences-in-differences approach, we find that asset acquisitions entail improved operating performance.
Brodmann, Jennifer
7926205a-e964-4b49-adb5-6bac15fe2417
Danso, Charles
243c810f-90d5-4116-abd4-77af666bb4c1
Jory, Rakesh
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Ngo, Thanh
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Brodmann, Jennifer
7926205a-e964-4b49-adb5-6bac15fe2417
Danso, Charles
243c810f-90d5-4116-abd4-77af666bb4c1
Jory, Rakesh
2624eb24-850a-48f6-b3c6-c96749b87322
Ngo, Thanh
852ea7b9-fd74-4a39-9281-87626e50886b
Brodmann, Jennifer, Danso, Charles, Jory, Rakesh and Ngo, Thanh
(2024)
Asset vs. equity acquisitions by financial institutions.
Journal of Financial Research.
(In Press)
Abstract
We examine the impact of asset vs. equity acquisitions in generating firm value for financial institutions. We find that acquirers experience statistically and economically significant higher CARs in asset acquisitions compared to equity acquisitions. We analyze the announcement period returns and find that investors' reaction to asset acquisitions by financial institutions is met more favorably than equity acquisitions. When employing the differences-in-differences approach, we find that asset acquisitions entail improved operating performance.
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Asset vs Equity acquisitions (Manuscript) Revised Final
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In preparation date: 10 January 2024
Accepted/In Press date: 10 January 2024
Identifiers
Local EPrints ID: 487118
URI: http://eprints.soton.ac.uk/id/eprint/487118
ISSN: 1475-6803
PURE UUID: 6f92f767-904d-4c23-8e61-898e00552573
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Date deposited: 14 Feb 2024 17:36
Last modified: 18 Mar 2024 03:24
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Contributors
Author:
Jennifer Brodmann
Author:
Charles Danso
Author:
Thanh Ngo
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