Does the Toehold Influence the Success of an M&A Transaction?
Journal Title: International Journal of Academic Research in Accounting, Finance and Management Sciences - Year 2014, Vol 4, Issue 1
Abstract
This study analyses whether the toehold (the target shares owned by the acquirer prior to launching a takeover bid) have a decisive role in the success of mergers and acquisition (M&A) transaction. It is well known that in any bidding process having a toehold is a significant competitive advantage over the rival bidders. This study is based on the takeover bids occurred on the Romanian capital market from 2000 to 2012. Our database includes both successful and unsuccessful transaction in terms of the change of control and companies operating in every industry. Other results suggest that the toehold can play an important role in a successful M&A transaction, but also that the toehold is influenced by other factors and by the industry of the acquired company.
Authors and Affiliations
Radu Ciobanu
Keywords
Related Articles
- EP ID EP141704
- DOI 10.6007/IJARAFMS/v4-i1/593
- Views 101
- Downloads 0
Increase the Performance of Companies in the Energy Sector by Implementing the Activity-Based Costing
Impact of Human Resources Management Practices on Employees’ Satisfaction. A Field Study on the Rajhi Cement Factory
The study aimed to analyze the impact of human resource management practices (human recourses planning, selection and appointment, rewards and motivation, training programs, and performance evaluation) on Employees’ job...
A Review of Bankruptcy and its Prediction
Bankruptcy is one of the key issues across the globe which influences the economy of all the countries. Heavy social and economic costs which are imposed by bankrupted companies on stockholders can cause motivation of re...
Causal Relationship between Liquidity and Profitability of Nigerian Deposit Money Banks
Audit Quality Determinants: Evidence from Quoted Health Care Firms in Nigeria
The objective of this study is to ascertain the determinants of audit quality with a focus on healthcare firms listed on the floor of Nigeria Stock Exchange from 2010-2016. This study made use of secondary data obtained...