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Preliminary Evidence on Takeover Target Returns in Spain: A Note
Author(s) -
Ocaña Carlos,
Peña J. Ignacio,
Robles Doloros
Publication year - 1997
Publication title -
journal of business finance and accounting
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.282
H-Index - 77
eISSN - 1468-5957
pISSN - 0306-686X
DOI - 10.1111/1468-5957.00099
Subject(s) - shareholder , period (music) , economics , estimation , monetary economics , share price , excess return , financial economics , business , finance , corporate governance , geography , physics , management , stock exchange , acoustics , context (archaeology) , archaeology
This paper measures the share price returns to Spanish takeover targets over the period 1990 to 1994. Using several estimation and testing methods, we show that target shareholders gain significant abnormal returns in the announcement period. In the first part of the year before the announcement period, firms that become targets do not show significant abnormal returns, though there is some significant upturn in the two months before the bid.