Takeover targets and the probability of bid success : evidence from the Australian market

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dc.contributor.author Hutson, Elaine
dc.date.accessioned 2010-05-18T15:27:34Z
dc.date.available 2010-05-18T15:27:34Z
dc.date.copyright 2000 Elsevier Science Inc. en
dc.date.issued 2000
dc.identifier.citation International Review of Financial Analysis en
dc.identifier.issn 1057-5219
dc.identifier.uri http://hdl.handle.net/10197/1988
dc.description.abstract The excess returns earned by takeover targets raises questions of efficiency in the market for corporate control. Brown and Raymond and Samuelson and Rosenthal explain the target share pricing process as a function of the probability of success of the takeover bid. We highlight weaknesses in this work, propose an alternative model, and apply it to 245 Australian takeovers from 1980 to 1993. We find, for targets of successful bids, considerable non-convergence to the bid price. This is consistent with speculative trading models whereby the reduction in dispersion of traders' beliefs leads to the evaporation of market liquidity. en
dc.description.sponsorship Not applicable en
dc.format.extent 4304 bytes
dc.format.mimetype application/pdf
dc.language.iso en en
dc.publisher Elsevier en
dc.subject Volatility en
dc.subject ARCH en
dc.subject Takeover en
dc.subject Tender offer en
dc.subject.lcsh Tender offers (Securities) en
dc.subject.lcsh Consolidation and merger of corporations--Econometric models en
dc.subject.lcsh Stocks--Prices en
dc.title Takeover targets and the probability of bid success : evidence from the Australian market en
dc.type Journal Article en
dc.internal.availability Full text not available en
dc.internal.webversions Publisher's version en
dc.internal.webversions http://dx.doi.org/10.1016/S1057-5219(99)00021-6 en
dc.status Peer reviewed en
dc.identifier.volume 9 en
dc.identifier.issue 1 en
dc.identifier.startpage 45 en
dc.identifier.endpage 65 en
dc.identifier.doi 10.1016/S1057-5219(99)00021-6
dc.neeo.contributor Hutson|Elaine|aut|UCD0044 en

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