search query: @author Sudarsanam, S. / total: 9
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| Author: | Sudarsanam, S. Holl, P. Salami, A. |
| Title: | Shareholder wealth gains in mergers : effect of synergy and ownership structure |
| Journal: | Journal of Business Finance and Accounting
1996 : JUL, VOL. 23:5&6, p. 673-698 |
| Index terms: | MERGERS COMPANY OWNERSHIP SYNERGY SHAREHOLDERS |
| Language: | eng |
| Abstract: | The article investigates the impact of synergy and agency conflict on the wealth of shareholders of bidding and target firms. Financial synergy between low growth/excess liquidity firms and high growth/low liquidity firms is the main source of synergy in acquisitions. When highly rated bidders acquire less highly rated targets, the acquiring firm shareholders experience wealth losses whereas target shareholders experience wealth gains. The ownership structure also impacts significantly on shareholder returns. Large shareholdings decrease these returns to both bidder and target shareholders whereas bidder toehold decreases the returns to target shareholders. |
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