Risks and Returns of Acquiring and Acquired Firms in Singapore: An Empirical Analysis

Author

Francis KOH, Singapore Management UniversityFollow
Soo-Hoon LEE

Publication Type

Journal Article

Publication Date

5-1998

Abstract

This paper investigates the risk profiles of target and acquiring firms and the impact of the takeover process on them. It was found that corporate takeovers generally increased the systematic risk of the acquiring firms after the event while lowering the systematic risk of the target firms. There were large and statistically significant returns obtained by the shareholders of the target firms due to the takeover event. The shareholders of the acquiring firms did not suffer any negative returns.

Discipline

Business

Research Areas

Finance

Publication

Asia-Pacific Journal of Management

Volume

5

Issue

3

First Page

157

Last Page

168

ISSN

0217-4561

Identifier

10.1007/bf01733151

Publisher

Springer Verlag

Citation

KOH, Francis and LEE, Soo-Hoon. Risks and Returns of Acquiring and Acquired Firms in Singapore: An Empirical Analysis. (1998). Asia-Pacific Journal of Management. 5, (3), 157-168.
Available at: https://ink.library.smu.edu.sg/lkcsb_research/2224