Large Wealth Creation in Mergers and Acquisitions
We examine completed MA (ii) transaction-specific events (not firm- nor CEO-specific events); (iii) enhanced by synergies from a strategic fit in the supply chain; and (iv) executed by bidders with high valuation multiples. Our analyses also document a link between financial accounting reporting irregularities and subsequent merger performance. These findings provide important insight into the factors associated with considerable wealth creation for acquirer shareholders in M&A deals.