Acquisition Announcement and Stock Price Behaviour: The Malaysian Experience

Jabatan Kewangan
Fakulti Pengurusan Perniagaan
Universiti Kebangsaan Malaysia
43600 UKM Bangi
Selangor D. E.


Abstract

This paper examines the effects of acquisition announcement on the price behaviour of the Malaysian bidders and target firms. Event study technique is the method used to compute abnormal returns, based on the single index or market model. However, two other models, the capital asset pricing model (CAPM) with unconstrained and constrained intercept, and the market model with constrained parameters a = 0 and B = 1 are also included in this study to ascertain whether the specification of control returns affect the results. There are no obvious difference in the conclusions from using different models.

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Citation

Mat Nor, F. (1993). Acquisition Announcement and Stock Price Behaviour: The Malaysian Experience. Jurnal Pengurusan, 12, 85–109.

@article{matnor1993acquisition,
  title={Acquisition Announcement and Stock Price Behaviour: The Malaysian Experience},
  author={Mat Nor, Fauzias},
  journal={Jurnal Pengurusan},
 

volume={12},
  number={},
  pages={85—109},
  year={1993},
  doi={},
  publisher={Penerbit UKM},
}

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12 (1993) 85 – 109

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