Single Tender Offers: Impact on Target Firms

The IUP Journal of Financial Risk Management, Vol. X, No. 2, June 2013, pp. 50-61

Posted: 25 Oct 2013

See all articles by Amporn Soongswang

Amporn Soongswang

Sripatum University - Graduate College of Management

Date Written: October 25, 2013

Abstract

This study primarily focuses on takeover effects on the target firms traded on the Stock Exchange of Thailand (SET) in the context of single tender offers. This research investigates a long-window excess return, or over a period of 12 months before and after the announcements by means of several metrics. The market and market-adjusted models are used to estimate the returns for the bid period, the Cumulative Abnormal Return (CAR) and Buy-and-Hold Abnormal Return (BHAR) methods are applied for the measurement of the returns of the target firms, and the three parametric test statistics are also used to test the significance of the abnornal returns of the target firm’s shareholders. The results suggest that takeovers occurring in the Thai stock market result in substantial positive wealth gains for the shareholders of the target firms.

Suggested Citation

Soongswang, Amporn, Single Tender Offers: Impact on Target Firms (October 25, 2013). The IUP Journal of Financial Risk Management, Vol. X, No. 2, June 2013, pp. 50-61, Available at SSRN: https://ssrn.com/abstract=2345097

Amporn Soongswang (Contact Author)

Sripatum University - Graduate College of Management ( email )

2410/2 Phaholyothin Rd
Jatujak
Bangkok, 10900
Thailand
(662) 579-1111 Ext. 3031 (Phone)
(662) 561-2222 Ext. 3005 (Fax)

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