The major problem examined is the return to the acquiring firm that results from merger activity. The design holds the time period and sample constant in order to focus on the measurement of returns using three different models. They are the Larson-Gonedes exchange ratio model (LGERM), the simple market model (SMM), and the mean adjusted return model (MARM). / The sample contains 91 mergers occurring from 1960 to 1979, and paid for by exchange of common stock. Returns are measured at five points in the merger process. / Five null hypotheses are used as benchmarks of performance. The first hypothesis states there is no difference in return to the acquiring firm when measured by three different models. A correlation of the returns indicate that the LGERM, which produces positive abnormal returns, is not correlated with the SMM and the MARM, which produce negative abnormal returns. The SMM and the MARM are correlated and have similar results for the noncumulative data. For the cumulative data, they are correlated in the short-term, but have lower correlations in the long-term. It is concluded that there is a difference in return results by model. / The second hypothesis states there is no difference when short-term and long-term returns are compared. The statistical analysis reveals no significant difference, although the short-term return underestimates the actual return in the long-term. / The third hypothesis states there is no difference when the sample is disaggregated by type of merger as defined by the FTC. There is a significant difference between nonconglomerates and the conglomerates and individual types of merger. / The fourth hypothesis states there is no difference based on data from two different decades. It is concluded that there is a difference between 1960s and 1970s mergers, but it is not a significant difference. / The fifth hypothesis states there is no difference when firms that frequently merge are compared to those that infrequently merge. All three models show no significant difference by frequency of merger. / Source: Dissertation Abstracts International, Volume: 47-01, Section: A, page: 0263. / Thesis (Ph.D.)--The Florida State University, 1985.
| Identifer | oai:union.ndltd.org:fsu.edu/oai:fsu.digital.flvc.org:fsu_75730 |
| Contributors | LAHEY, KAREN EILERS., Florida State University |
| Source Sets | Florida State University |
| Detected Language | English |
| Type | Text |
| Format | 275 p. |
| Rights | On campus use only. |
| Relation | Dissertation Abstracts International |
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