Extraordinary Acquirers

Abstract

Firm fixed effects alone explain more of the variation in acquirer returns than all the firm and deal specific characteristics combined. An inter- quartile range of acquirer fixed effects is over six times the average acquirer return of about 1% in our sample. Acquirer returns persist over time, but mainly at the extremes. The attributes of the top management team fail to explain the fixed effect. Firm-specific heterogeneity in acquirer returns suggests that some organizations are extraordinary acquirers irrespective of the leadership at the top and the deal structures they choose. Implications for the M&A research are discussed.

The article can be downloaded from the Finance Accounting seminar website:

http://recanati-bs.tau.ac.il/Eng/Finance-Accounting-Seminar