TY  - BOOK
AU  - Chang Shao - Chi
AU  - Tsai Ming - Tse
TI  - Long-run performance of mergers and acquisition of privately held targets: Evidence in the USA
SN  - 13504851
AV  - H1.A666 APP 
PY  - 2013///
CY  - New York
PB  - Taylor and Francis
KW  - Privately held target
KW  - Information uncertainty
KW  - Merger and acquisition
KW  - USA
N2  - In this study, we examine the long-run performance of firms acquiring privately held targets. Past studies have documented a positive market reaction to the announcement of Mergers and Acquisitions (M&A) of privately held targets. The M&As of privately held targets involve uncertain information, which investors are more likely to misestimate. In this study, we tested the long-run performances of acquiring firms and found negative results. We further found that the stock performance of acquiring firms was superior prior to the M&A. Our results suggest that investors may over-extrapolate prior good performance and that the long-run reversed return corrects the overestimation in response to announcements of M&A
UR  - https://doi.org/10.1080/13504851.2012.718060
ER  -