RT Journal Article
SR Electronic
T1 Mergers and Acquisitions in a Global Context
JF The Journal of Investing
FD Institutional Investor Journals
SP 29
OP 35
DO 10.3905/joi.2001.319459
VO 10
IS 2
A1 Ronald Q. Doeswijk
A1 Hemmo S.K. Hemmes
YR 2001
UL https://pm-research.com/content/10/2/29.abstract
AB Using a global sample of mergers and acquisitions in 1998, this article examines the short-term reaction of stock prices and analysts' earnings estimates to the announcement of a merger or acquisition. Targets and merging firms outperform the market in the period before and on the day of the announcement. However, merging firms show a significant underperformance immediately there after. Moreover, we find a lack of upward revisions in consensus earnings estimates for the post-announcement years. This suggests that synergies are hard to find.