Abstract

Being able to predict a merger or acquisition before it takes place could lead to an investor earning a premium, if they owned shares of the targeted firm before the merger or acquisition attempt is announced. On average acquiring firms pay a premium when acquiring or merging with a targeted firm. This study uses publicly available financial information for 7,267 attempted takeover targets and 52,343 non-targeted firms for the period January 3, 2000 through December 31, 2007 to estimate (using logit) predictive models. Financial ratios are constructed based on six hypotheses found in the literature. Although statistical evidence supports a few of the hypotheses, the low predictive power of the models does not indicate the ability to accurately predict targeted firms ahead of time, let alone with any economic significance.

Notes

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Thesis Completion

2012

Semester

Spring

Advisor

Gilkeson, James H.

Degree

Bachelor of Science in Business Administration (B.S.B.A.)

College

College of Business Administration

Degree Program

Finance

Subjects

Business Administration -- Dissertations, Academic; Dissertations, Academic -- Business Administration

Format

PDF

Identifier

CFH0004133

Language

English

Access Status

Open Access

Length of Campus-only Access

None

Document Type

Honors in the Major Thesis

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Included in

Finance Commons

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