 Valuation effects of mergers and acquisitions in freight transportationPanayiotis C. Andreou, Christodoulos Louca and Photis M. Panayides Transportation Research Part E: Logistics and Transportation Review, 2012, vol. 48, issue 6, 1221-1234 Abstract: This study investigates valuation effects of mergers and acquisitions in the freight transportation industry. It is found that mergers and acquisitions create synergistic gains, especially tender offers, consistent with the view that freight transportation mergers and acquisitions occur for synergistic reasons rather than management’s desire for empire building or perk consumption. Both target’s and bidder’s shareholders are better-off, but most of the synergistic gains accrue to the target’s shareholders. Targets’ valuation effects are greater for vertical rather than horizontal mergers, indicating a positive valuation for firms that control and manage a more extensive supply chain. The bidders’ wealth effects are greater for friendly mergers. Overall, the findings have important implications for professional practice and the development of the theoretical literature. Keywords: Valuation effects; Mergers; Acquisitions; Freight transportation (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:transe:v:48:y:2012:i:6:p:1221-1234 Ordering information: This journal article can be ordered from DOI: 10.1016/j.tre.2012.06.006 Access Statistics for this article Transportation Research Part E: Logistics and Transportation Review is currently edited by W. Talley More articles in Transportation Research Part E: Logistics and Transportation Review from Elsevier |
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