Premium
POST‐MERGER PERFORMANCE AMONG HOMOGENEOUS FIRM SAMPLES
Author(s) -
Choi Dosoung,
Philippatos George C.
Publication year - 1984
Publication title -
financial review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.621
H-Index - 47
eISSN - 1540-6288
pISSN - 0732-8516
DOI - 10.1111/j.1540-6288.1984.tb01094.x
Subject(s) - market liquidity , homogeneous , business , sample (material) , debt , event study , monetary economics , mergers and acquisitions , industrial organization , economics , finance , mathematics , paleontology , chemistry , context (archaeology) , chromatography , biology , combinatorics
This paper analyzes the post‐merger performance of acquiring firms. The sample is transformed to a few homogenized subsamples along the various critical dimensions of the merger event. Those clusters with high growth or active acquisitions, active utilization of debt capacity, and low liquidity showed performance superior to the market. The results provide support for the hypothesis of financial synergism or at least the hypothesis that aggressive growth strategies are rewarded by the market.