The Effect of Targets’ Organizational Capital on Acquirers’ Abnormal Returns
Date
2016-09-27
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
ORCID
Type
Thesis
Degree Level
Masters
Abstract
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.
Description
Keywords
acquisitions, organizational capital, SG&A, diversifying acquisition, corporate governance
Citation
Degree
Master of Science (M.Sc.)
Department
Edwards School of Business
Program
Finance