The Effect of Targets’ Organizational Capital on Acquirers’ Abnormal Returns

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Date
2016-09-27Author
Hao, Yimeng 1992-
Type
ThesisDegree Level
MastersMetadata
Show full item recordAbstract
Literature has shown that organizational capital is an important production factor and is positively related with firm value, Tobin’s Q, stock returns and executive compensation. We examine whether this organizational capital functions well in another firm in a merger. Results show that acquirers experience higher announcement abnormal returns when the targets have higher organizational capital and this effect strengthens in non-diversifying acquisitions and when acquirers have better corporate governance.
Degree
Master of Science (M.Sc.)Department
Edwards School of BusinessProgram
FinanceSupervisor
Yu, MiaomiaoCommittee
Wilson, Craig; Cao, James; Mamun, Abdullah; Xie, JiaCopyright Date
September 2016Subject
acquisitions
organizational capital
SG&A
diversifying acquisition
corporate governance