Holding Size While Improving Power in Tests of Long-Run Abnormal Stock Returns

1996 ◽  
Author(s):  
Brad M. Barber ◽  
Richard Lyon ◽  
Chih-Ling Tsai
Keyword(s):  
Stock Returns ◽  
Long Run ◽  
Abnormal Stock Returns

Private public distinction of the target and the long run operating performance of acquirers

2016 ◽  
Vol 28 (1) ◽  
pp. 38-58 ◽  
Author(s):  
Syed M. M. Shams ◽  
Abeyratna Gunasekarage
Keyword(s):  
Stock Returns ◽  
Operating Performance ◽  
Cash Flows ◽  
Content Type ◽  
Organisational Form ◽  
Long Run ◽  
Two Samples ◽  
Short Run ◽  
Private And Public ◽  
Abnormal Stock Returns

Purpose – The purpose of this study is to examine whether the acquirers of private targets outperform their peers that acquire public targets in the long run. Design/methodology/approach – Using two samples of acquirers of private and public targets, this paper analyses their short-run market performance and long-run operating performance. Univariate analyses and multiple regressions are used to analyse abnormal stock returns and abnormal cash flow performances of bidders. Findings – Acquirers of private targets earn significantly higher abnormal return than acquirers of public targets during the announcement period. Similarly, the long-run operating performance of acquirers of private targets is significantly higher than that of the acquirers of public targets. However, the performance difference between two groups is more pronounced when cash flows are scaled by the market value of acquirers. Originality/value – This is the first Australian study to examine whether the long-run operating performance of acquirers depends on the organisational form of the target acquired.

Are Bank Loans Special? Evidence on the Post-Announcement Performance of Bank Borrowers

2006 ◽  
Vol 41 (4) ◽  
pp. 733-751 ◽  
Author(s):  
Matthew T. Billett ◽  
Mark J. Flannery ◽  
Jon A. Garfinkel
Keyword(s):  
Stock Returns ◽  
Public Debt ◽  
Poor Performance ◽  
Seasoned Equity Offerings ◽  
Bank Loans ◽  
Bank Loan ◽  
Equity Offerings ◽  
Long Run ◽  
Loan Financing ◽  
Abnormal Stock Returns

AbstractUnlike seasoned equity or public debt offerings, bank loan financing elicits a significantly positive announcement return, which has led financial economists to characterize bank loans as “special.” Here, we find that firms announcing bank loans suffer negative abnormal stock returns over the subsequent three years. In the long run, bank loans appear no different from seasoned equity offerings or public debt issues. Our evidence suggests that larger loans (relative to borrower equity) are followed by worse stock performance. We also find that lender protection is negatively related to borrower performance, suggesting the lender is somewhat shielded from the poor performance.

scholarly journals Does good corporate governance pay off in the long-run? Evidence from stock market segment switches in Brazil

2019 ◽  
Vol 17 (3) ◽  
pp. 1
Author(s):  
Lars Norden ◽  
Luiz Moura
Keyword(s):  
Corporate Governance ◽  
Stock Market ◽  
Stock Returns ◽  
Fixed Effects ◽  
Global Financial Crisis ◽  
Positive Impact ◽  
Good Corporate Governance ◽  
Long Run ◽  
Abnormal Stock Returns ◽  
The Global Financial Crisis

<p>We investigate the long-run effects of higher standards of corporate governance in the stock market. We consider Brazilian firms that switched from the traditional segment to the Nível 1, Nível 2 or Novo Mercado since 2000. We document that higher standards of governance result in significantly higher abnormal stock returns in the long run, controlling for firm and time fixed effects. The positive impact increased after the Global Financial Crisis, market microstructure has improved, and the market impact is stronger for financially healthy firms. Evidence suggests that committing to higher standards of corporate governance paid off for Brazilian firms in the long run.</p>

Improved Methods for Tests of Long-Run Abnormal Stock Returns

1999 ◽  
Vol 54 (1) ◽  
pp. 165-201 ◽  
Author(s):  
John D. Lyon ◽  
Brad M. Barber ◽  
Chih-Ling Tsai
Keyword(s):  
Stock Returns ◽  
Long Run ◽  
Abnormal Stock Returns ◽  
Improved Methods
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