Sample of mergers in the telecommunications industry.
Kohers, Kohers (2001)
–37.39%
304
1984–1995
(1,1,250)
N/A
Sample of technology mergers.
Moeller, Schlingemann, Stulz (2003)
–4.1%
12,023
1980–2001
(0,36 months)
N/A
Unless otherwise noted, event date is announcement date of merger/bid.
*Significant at the 0.95 confidence level or better.
FINDINGS BASED ON THE ANALYSIS OF REPORTED FINANCIAL PERFORMANCE
A second important stream of research on M&A returns is found in 15 studies of profit margins, growth rates, and returns on assets, capital, and equity, summarized in Exhibit 3.8. Scanning the column of results yields the observation that two studies report significantly negative performance postacquisition, four report significantly positive performance, and the rest are in the nonsignificant middle ground. Four studies illuminate interesting aspects of postacquisition performance.
