Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

Foreign takeovers of Australian listed entities

Foreign takeovers of Australian listed entities This study examines if Australian target firm abnormal returns and characteristics differ between Australian and foreign bidders. The results indicate that takeovers from foreign bidders are associated with higher target firm abnormal returns than bids from Australian firms. Overseas bidders also pay an additional premium for research-intensive target firms. Target firms that receive an offer from outside Australia are significantly larger, have lower leverage, and are more likely to operate in the resources sector. Foreign acquisitions are also more likely to be a friendly takeover. The relative exchange rate is not associated with the likelihood of a foreign takeover. There is no difference in takeover success or competition between domestic and foreign bids. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Australian Journal of Management SAGE

Foreign takeovers of Australian listed entities

Bugeja, Martin
Australian Journal of Management , Volume 36 (1): 19 – Apr 1, 2011
Download PDF
19 pages

Loading next page...
 
/lp/sage/foreign-takeovers-of-australian-listed-entities-HNRG0Jbanz
Publisher
SAGE
Copyright
© The Author(s) 2010
ISSN
0312-8962
eISSN
1327-2020
DOI
10.1177/0312896210388858
Publisher site
See Article on Publisher Site

Abstract

This study examines if Australian target firm abnormal returns and characteristics differ between Australian and foreign bidders. The results indicate that takeovers from foreign bidders are associated with higher target firm abnormal returns than bids from Australian firms. Overseas bidders also pay an additional premium for research-intensive target firms. Target firms that receive an offer from outside Australia are significantly larger, have lower leverage, and are more likely to operate in the resources sector. Foreign acquisitions are also more likely to be a friendly takeover. The relative exchange rate is not associated with the likelihood of a foreign takeover. There is no difference in takeover success or competition between domestic and foreign bids.

Journal

Australian Journal of Management – SAGE

Published: Apr 1, 2011

There are no references for this article.