Effects of targets’ intangibles and acquirers’ capital intensity on announcement returns.

This paper studies how intangibles of target firms and capital intensity of acquirer firms affect merger announcement returns as measured by cumulative abnormal returns (CAR). We first focus on the established effect of different variables that past studies have shown to play a part in merger announ...

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Main Authors: Chia, Norman., Lin, Xuguang., Quek, Ngee Poo.
Other Authors: Tham Tze Minn
Format: Final Year Project
Language:English
Published: 2011
Subjects:
Online Access:http://hdl.handle.net/10356/43716
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Institution: Nanyang Technological University
Language: English
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spelling sg-ntu-dr.10356-437162023-05-19T06:24:07Z Effects of targets’ intangibles and acquirers’ capital intensity on announcement returns. Chia, Norman. Lin, Xuguang. Quek, Ngee Poo. Tham Tze Minn Nanyang Business School DRNTU::Business::Accounting::Intangibles DRNTU::Business::Finance::Mergers and acquisitions This paper studies how intangibles of target firms and capital intensity of acquirer firms affect merger announcement returns as measured by cumulative abnormal returns (CAR). We first focus on the established effect of different variables that past studies have shown to play a part in merger announcement returns. Holding these variables constant, we introduce various measures of intangibles and capital intensity to study their effects on merger announcement returns. Our results show that intangibles (as measured by target’s Intangibles/R&D/Amortisation as a percentage of total assets) do show a significant positive loading on merger announcement returns. As for capital intensity, two of our three variables/proxies used – Capex and PPE growth exhibit significant positive loadings on CAR. Hence, capital intensity also displays a positive loading on merger announcement returns. BUSINESS 2011-04-21T01:37:13Z 2011-04-21T01:37:13Z 2011 2011 Final Year Project (FYP) http://hdl.handle.net/10356/43716 en Nanyang Technological University 36 p. application/pdf
institution Nanyang Technological University
building NTU Library
continent Asia
country Singapore
Singapore
content_provider NTU Library
collection DR-NTU
language English
topic DRNTU::Business::Accounting::Intangibles
DRNTU::Business::Finance::Mergers and acquisitions
spellingShingle DRNTU::Business::Accounting::Intangibles
DRNTU::Business::Finance::Mergers and acquisitions
Chia, Norman.
Lin, Xuguang.
Quek, Ngee Poo.
Effects of targets’ intangibles and acquirers’ capital intensity on announcement returns.
description This paper studies how intangibles of target firms and capital intensity of acquirer firms affect merger announcement returns as measured by cumulative abnormal returns (CAR). We first focus on the established effect of different variables that past studies have shown to play a part in merger announcement returns. Holding these variables constant, we introduce various measures of intangibles and capital intensity to study their effects on merger announcement returns. Our results show that intangibles (as measured by target’s Intangibles/R&D/Amortisation as a percentage of total assets) do show a significant positive loading on merger announcement returns. As for capital intensity, two of our three variables/proxies used – Capex and PPE growth exhibit significant positive loadings on CAR. Hence, capital intensity also displays a positive loading on merger announcement returns.
author2 Tham Tze Minn
author_facet Tham Tze Minn
Chia, Norman.
Lin, Xuguang.
Quek, Ngee Poo.
format Final Year Project
author Chia, Norman.
Lin, Xuguang.
Quek, Ngee Poo.
author_sort Chia, Norman.
title Effects of targets’ intangibles and acquirers’ capital intensity on announcement returns.
title_short Effects of targets’ intangibles and acquirers’ capital intensity on announcement returns.
title_full Effects of targets’ intangibles and acquirers’ capital intensity on announcement returns.
title_fullStr Effects of targets’ intangibles and acquirers’ capital intensity on announcement returns.
title_full_unstemmed Effects of targets’ intangibles and acquirers’ capital intensity on announcement returns.
title_sort effects of targets’ intangibles and acquirers’ capital intensity on announcement returns.
publishDate 2011
url http://hdl.handle.net/10356/43716
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