The wealth effects of mergers and acquisitions to target-companies in USA for the period 1920-2000: A critical examination of related empirical studies

Abstract

In the present paper we collect and assess the results from a number of empirical studies which deal with the economic impact of mergers and acquisitions to the share value of target-companies in USA. The studies in question cover a time interval from 1920 until 2000 and represent almost the entire studies that evaluate the phenomenon among various business areas. Despite the fact that positive results arise for target-companies shareholders from mergers and acquisitions, the results show significant divergences among studies with overlapping sample periods and/or with common or similar event windows, fact which prevents the derivation of concrete conclusions.

JEL Classifications: G34, G14, N22