The effect of acquisition announcement on shareholder returns in the Singapore stock market

• Main Authors: Ang, Yam Hwa, Khoo, Boo Guan, Toh, Shieh Fern
• Other Authors: Nanyang Business School
• Format: Final Year Project
• Language: English
• Published: 2013
• Subjects: DRNTU::Business::Accounting
• Online Access: http://hdl.handle.net/10356/51515
• Institution: Nanyang Technological University

The purpose of this research is to determine whether shareholders of both the acquiring firms and the target firms benefit from takeovers. To measure the effects of takeovers on share price retums, the Event Study technique is used. The cases of takeovers are obtained from the SES Financial News and the share prices and SES All Share Indices are extracted from the NTU Financial Database. This study finds that shareholders of the target firms benefit substantially (6.96%) from takeovers. However, for shareholders of the acquiring firms, the gains enjoyed are small in percentage terms (0.88%) and less statistically significant than that for target firms.