The market reaction to the announcement of Part B Statements in corporate takeovers

Parkes, Christopher J. (1996). The market reaction to the announcement of Part B Statements in corporate takeovers Honours Thesis, School of Business, The University of Queensland.

       
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Author Parkes, Christopher J.
Thesis Title The market reaction to the announcement of Part B Statements in corporate takeovers
School, Centre or Institute School of Business
Institution The University of Queensland
Publication date 1996
Thesis type Honours Thesis
Total pages 102
Language eng
Subjects 14 Economics
Formatted abstract This thesis examines the share price reaction of target firms to the announcement of Part B Statements in corporate takeovers. Part B Statements are the target firm's response to the proposed takeover offer. Hypotheses are developed in relation to the recommendations of the target directors, the opinion of the independent expert, several characteristics of the target board of directors and the target's leverage. These hypotheses are tested on a sample of97 Part B Statements announ.ced to the market over the period January 1988 through June 1995. The results of the univariate and multivariate statistical testing provide some support for the hypothesis that the market reacts positively to the Part B Statement when it contains an accept recommendation from the directors. Little evidence was found in support of a market reaction to a reject recommendation by the directors. No evidence was found of a market reaction to the opinion of the independent expert. The proportion of equity held by the target directors, the proportion of outside directors on the target's board, and the leverage of the target were unable to explain a significant portion of the abnormal returns accruing to target firms on announcement of the Part B Statement.

 
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Created: Wed, 27 Oct 2010, 11:51:34 EST by Ning Jing on behalf of Social Sciences and Humanities Library Service