Asymmetric Cost Behavior and Acquirer Returns:Evidence from U.S. Mergers

Mine UĞURLU; Gamze ÖZTÜRK DANIŞMAN; Seda BİLYAY ERDOĞAN; Çiğdem VURAL YAVAŞ

doi:https://doi.org/10.21121/eab.536640

Makale detayları

Asymmetric Cost Behavior and Acquirer Returns:Evidence from U.S. Mergers

Yazarlar:

Mine UĞURLU | Gamze ÖZTÜRK DANIŞMAN | Seda BİLYAY ERDOĞAN | Çiğdem VURAL YAVAŞ

Yayıncı:

Ege University

Ana Başlıklar:

Yönetim

Dergi:

Ege Academic Review 2019 Vol.19 Issue 3, pp.323-339

Belge Tipi:

Makale

Yayın Tarihi:

7/2019

Belge Dili:

İngilizce

Document ID (Org No.):

2000950676

Sıklık:

Üç Aylık

pISSN:

1303-099X

DOI:

https://doi.org/10.21121/eab.536640

Özet:

 


This paper investigates the asymmetric behavior of SG&A costs of acquirers,and reveals its effects on M&A performance.It is based on a sample of 6888 M&As completed in the U.S. during the 2003-2015 period and employs panel data regressions.The results show that 73% of the acquirers display asymmetric cost behavior.A significant negative  relation is found between cost stickiness and acquirers'abnormal returns following the merger announcement. Competition in the market for corporate control is positiviley  related with acquirer returns but exacerbates the negative effects of cost stickiness on abnormal returns of the acquirers.The acquirers' risk of default is significantly negatively related to the abnormal returns they generate.This adverse effect of default risk on returns  is stronger for acquirers with anti-sticky costs Acquirer risk offsets the positive effects of competition on returns.Acquirers with sticky costs have lower  abnormal returns than those with anti-stickycosts in a one-year window.The present study contributes to the literature by revealing the asymmetric cost behavior of acquirers involved in merger activity and provides an alternative explanation for the lower abnormal returns of the acquiring firms.

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Makale detayları

Asymmetric Cost Behavior and Acquirer Returns:Evidence from U.S. Mergers

Yazarlar: Mine UĞURLU | Gamze ÖZTÜRK DANIŞMAN | Seda BİLYAY ERDOĞAN | Çiğdem VURAL YAVAŞ

Yayıncı: Ege University

Ana Başlıklar: Yönetim

Dergi: Ege Academic Review 2019 Vol.19 Issue 3, pp.323-339

Belge Tipi: Makale

Yayın Tarihi: 7/2019

Belge Dili: İngilizce

Document ID (Org No.): 2000950676

Sıklık: Üç Aylık

pISSN: 1303-099X

DOI: https://doi.org/10.21121/eab.536640

Sayı

Yazarlar:

Mine UĞURLU | Gamze ÖZTÜRK DANIŞMAN | Seda BİLYAY ERDOĞAN | Çiğdem VURAL YAVAŞ

Yayıncı:

Ege University

Ana Başlıklar:

Yönetim

Dergi:

Ege Academic Review 2019 Vol.19 Issue 3, pp.323-339

Belge Tipi:

Makale

Yayın Tarihi:

7/2019

Belge Dili:

İngilizce

Document ID (Org No.):

2000950676

Sıklık:

Üç Aylık

pISSN:

1303-099X

DOI:

https://doi.org/10.21121/eab.536640