Gao, Zaihan;
Bao, Yue;
(2023)
An investigation of market reaction differences between mega-deals and non–mega deals considering industry concentration.
Finance Research Letters
, 51
, Article 103441. 10.1016/j.frl.2022.103441.
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Abstract
This study investigates the performance of mega-deals and non-mega-deals and the role of industry concentration level. Our research finds that while non-mega-deals tend to have better short-term performance, mega-deals are more likely to perform better in the long term. In addition, a higher industry concentration plays a positive role in the short- and long-term performance of both mega-deals and non-mega-deals. However, its effect on long-term performance is not as pronounced, especially in the case of mega-deals. A lower industry concentration implies more competition, which may lead to a higher offer premium and adversely affect stockholders in the short term.
| Type: | Article |
|---|---|
| Title: | An investigation of market reaction differences between mega-deals and non–mega deals considering industry concentration |
| Open access status: | An open access version is available from UCL Discovery |
| DOI: | 10.1016/j.frl.2022.103441 |
| Publisher version: | https://doi.org/10.1016/j.frl.2022.103441 |
| Language: | English |
| Additional information: | This version is the author accepted manuscript. For information on re-use, please refer to the publisher’s terms and conditions. |
| Keywords: | M&A deals; mega-deals; deal performance; industry concentration |
| UCL classification: | UCL UCL > Provost and Vice Provost Offices > UCL BEAMS UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of the Built Environment |
| URI: | https://discovery.ucl.ac.uk/id/eprint/10160612 |
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