| Author: | Servaes, H. |
| Title: | Tobin's Q and the gains from takeovers |
| Journal: | Journal of Finance
1991 : MAR, VOL. 46:1, p. 409-419 |
| Index terms: | MERGERS TENDER OFFERS RETURN ON INVESTMENT |
| Language: | eng |
| Abstract: | The relation between takeover gains and the q ratios of targets and bidders is analyzed for a sample of 704 mergers and tender offers over the period 1972-1987. Target, bidder, and total returns are larger when targets have low q ratios and bidders have high q ratios. The relation is strengthened after controlling for the characteristics of the offer and the contest. This evidence confirms the results of the work by Lang , Stulz, and Walking and shows that their findings also hold for mergers and after controlling for other determinants of takeover gains. |
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