Title

Takeovers and shareholder value creation on the stock exchange of Thailand

Document Type

Book Chapter

Publisher

Elsevier JAI

Faculty

Business and Law

School

Accounting, Finance and Economics

RAS ID

6258

Comments

This chapter was originally published as: Allen, D. E., & Soongswang, A. (2008). Takeovers and shareholder value creation on the stock exchange of Thailand. In Suk-Joong Kim & Michael McKenzie (Eds.). International Finance Review: 'Asia-Pacific Financial Markets: Integration, Innovation and Challenges' (pp. 347-370). Location: Elsevier JAI. Original book available here

Abstract

There are few studies of take over effects in emerging stock markets and of whether such events result in value-increasing or value-decreasing effects for the successful targets and bidders. This study analyses the impact of successful takeovers on the Stock Exchange of Thailand (SET). Both target and bidding firms’ performances during a period of 12 months before and after the takeover are investigated. Abnormal returns are measured using an event study approach; applying two models and three parametric test statistics. The results suggest that Thai takeover effects are wealth-creating for both offeree and offeror shareholders.

DOI

10.1016/S1569-3767(07)00017-9

 

Link to publisher version (DOI)

10.1016/S1569-3767(07)00017-9