Khóa luận - A study on withdrawn merger proposals involving private target

TABLE OF CONTENTS
LIST OF ABBREVIATIONS..................................................................................... LIST OF FIGURES .................................................................................................... LIST OF TABLES ...................................................................................................... ACKNOWLEDGEMENTS........................................................................................ CHAPTER 1: INTRODUCTION ............................................................................1
1.1. Background .......................................................................................................1
1.2. Research questions and research objectives .....................................................3
1.3. Scope of the study.............................................................................................4
1.4. Research methodology......................................................................................4
1.4.1. Method of collecting data...........................................................................4
1.4.2. Method of processing data .........................................................................5
1.5. Thesis structure .................................................................................................5
CHAPTER 2: LITERATURE REVIEW................................................................7
2.1. Merger and withdrawals of merger...................................................................7
2.2. Empirical evidences of related literature about withdrawals of merger ...........8
2.3. Factors affecting withdrawn merger proposals’ abnormal return ....................9
2.3.1. Target firm status .......................................................................................9
2.3.2. Method of payment ...................................................................................10
2.3.3. Bidder cash level ......................................................................................11
2.3.4. Bidder leverage level................................................................................11
2.3.5. Abnormal return from merger announcement .........................................11
2.3.6. Multiple bidders .......................................................................................12
2.3.7. Relatedness ...............................................................................................12
2.3.8. Relative size of bidder versus target ........................................................13
2.3.9. Financial crisis .........................................................................................13

2.3.10. Bidder’s return on assets........................................................................13
CHAPTER 3: RESEARCH DESIGN ...................................................................14
3.1. Estimation of valuation effects .......................................................................14
3.2. Multivariate analysis.......................................................................................15
3.2.1. Hypotheses................................................................................................15
3.2.2. Models ......................................................................................................16
3.3. Data and samples ............................................................................................20
3.4. Sample description..........................................................................................21
3.5. Correlation matrix...........................................................................................23
CHAPTER 4: EMPIRICAL RESULTS AND FINDINGS .................................26
4.1. Overview of Australian economy ...................................................................26
4.2. Results from estimation of valuation effects ..................................................29
4.2.1. Not control for method of payment ..........................................................29
4.2.2. Control for method of payment ................................................................32
4.3. Results of multivariate analysis ......................................................................34
4.4. Robustness checks ..........................................................................................45
4.4.1. Robustness check with event window (-1,+1) ..........................................45
4.4.2. Robustness check with event window (-2,+1) ..........................................54
CHAPTER 5: CONCLUSIONS, RECOMMENDATIONS, AND LIMITATIONS .......................................................................................................64
5.1. Conclusions.....................................................................................................64
5.2. Recommendations...........................................................................................65
5.3. Limitations and suggestions for further study ................................................67
REFERENCES ........................................................................................................69 APPENDIX ..............................................................................................................72