Merger Impacts on Investor Expectations: An Event Study for Australia

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Merger Impacts on Investor Expectations: An Event Study for Australia

Show simple item record Diepold, Brian Feinberg, Robert M. Round, David K. Tustin, Jeremy 2009-02-20T14:20:05Z 2009-02-20T14:20:05Z 2006-10 2006-10
dc.description Working Paper No. 2007-07. 26 pages. An earlier version of this paper was presented at the International Industrial Organization Conference in Atlanta, Georgia in April 2005. We thank session participants for helpful comments and suggestions. All errors and omissions are the responsibility of the authors. en
dc.description.abstract In previous work (Feinberg and Round, 2005), little evidence of share-price response to Australian price-fixing investigations was found. However, these investigations often involve a small part of a company’s operations and antitrust penalties have tended to be relatively small; in fact, some weak support was found for a greater response by investors when penalties were expected to be more significant. Mergers, on the other hand, clearly represent a much more significant event, and we would anticipate a clearer share-price response both to announced mergers and to associated antitrust challenges. While such studies have been done in other countries (primarily for the US), we know of no prior research of this sort for Australia. In this paper we focus on a sample of about 50 mergers and acquisitions involving Australian companies from 1996-2003, examining the impact on share prices of the announcement of these mergers both on the firms involved and on rival firms. For those which were challenged by the Australian antitrust enforcers, we also consider the impact of the announcement of such a challenge. en
dc.description.sponsorship Department of Economics, American University en
dc.language.iso en_US en
dc.publisher Department of Economics, American University en
dc.subject.other Australia en
dc.title Merger Impacts on Investor Expectations: An Event Study for Australia en
dc.type Working Paper en

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